Corrective Action Plans

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FINDING 2023-002 Finding Subject: COVID-19 - Education Stabilization Fund - Reporting Summary of Finding: There was not an effective oversight or review process in place to prevent, or detect and correct, errors regarding the annual data report submissions. The School Corporation’s records did not s...
FINDING 2023-002 Finding Subject: COVID-19 - Education Stabilization Fund - Reporting Summary of Finding: There was not an effective oversight or review process in place to prevent, or detect and correct, errors regarding the annual data report submissions. The School Corporation’s records did not support the amounts reported for expenditures in either ESSER II annual data report. It was recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure all reports submitted on behalf of the Education Stabilization Fund program funds are supported by the School Corporation’s underlying accounting records. Contact Person Responsible for Corrective Action: Tim Armstrong Contact Phone Number and Email Address: 812.753.4230: tim.armstrong@sgibson.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Beginning with the annual data report submissions for these funds due in April 2024, the Assistant Superintendent will audit the reports as prepared by the Treasurer in order to ensure the spreadsheets are correct and reflect the financial statements’ of the school corporation. Anticipated Completion Date: 5 March 2024
Excluding the September 30, 2022 reporting cycle, the Department accurately reported Full-Time Equivalent (FTE) positions in the ESSER Annual Data Collection reports. Instead of reporting FTEs as of September 30, 2022, the Department reported total number of positions. This error will be corrected w...
Excluding the September 30, 2022 reporting cycle, the Department accurately reported Full-Time Equivalent (FTE) positions in the ESSER Annual Data Collection reports. Instead of reporting FTEs as of September 30, 2022, the Department reported total number of positions. This error will be corrected with the next reporting cycle, and staff will ensure that future reports include accurate reporting units.
The Attendance and Records Center (ARC) team has put in place a process to check students with any cohort removal codes on a weekly basis, and ensure any required backup documentation is scanned into Aeries. Additionally, all staff received training on the Status Change form and the cohort exit code...
The Attendance and Records Center (ARC) team has put in place a process to check students with any cohort removal codes on a weekly basis, and ensure any required backup documentation is scanned into Aeries. Additionally, all staff received training on the Status Change form and the cohort exit codes that require backup documentation. The ACCESS Administrative Guidelines and Procedures Manual was also shared with staff, including section 3.9 addressing, “Documentation and Evidence Required in Order to Remove a Student from the High School Graduation Rate Cohort.” All new staff will receive a copy of the manual.
Student Financial Aid Cluster – Gramm-Leach-Bliley Act Assistance Listing No. 84.063, 84.268, 84.007, 84.033 Recommendation: We recommend the College ensure its written information security program addresses the required minimum elements as outlined in 16 CFR 314.4. Explanation of disagreement wi...
Student Financial Aid Cluster – Gramm-Leach-Bliley Act Assistance Listing No. 84.063, 84.268, 84.007, 84.033 Recommendation: We recommend the College ensure its written information security program addresses the required minimum elements as outlined in 16 CFR 314.4. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: A CIO who has extensive experience in regulatory compliance as well as cyber security has been hired. The CIO has set forth a plan to get us in full regulatory compliance. A new information security plan has been crafted and is being published on the website. That plan will be put into practice over the next few months. Name(s) of the contact person(s) responsible for corrective action: Irving Bruckstein Planned completion date for corrective action plan: June 30, 2024
Finding 2023-006 Information on the federal program: Subject: Education Stabilization Fund – Special Tests and Provisions - Wage Rate Requirements Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numb...
Finding 2023-006 Information on the federal program: Subject: Education Stabilization Fund – Special Tests and Provisions - Wage Rate Requirements Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Special Tests and Provisions - Wage Rate Requirements Audit Findings: Material Weakness, Qualified Opinion Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Special Tests and Provisions – Wage Rate Requirements compliance requirements. The School Corporation did not include Davis Bacon wage rate requirements in its contract with vendor which includes labor. The School Corporation did not obtain the weekly payroll reports certifications from a construction company and its subcontractors for a building project. Context: The School Corporation expended $556,865 during the audit period on a construction project to expand the cafeteria which was charged to the ESSER III grant award (84.425U) and approved through the grant application with the Indiana Department of Education. The construction contract did not include a Davis-Bacon clause prescribing federal wage rate requirements required for construction contracts. The School Corporation did not have an internal control designed to collect the weekly payroll reports certifications from the construction company and its subcontractors, as applicable, for the construction project to verify prevailing wages were being paid during the project period. Therefore, no review was performed by management to ensure that pay rates complied with the federal wage rate requirements. The construction payments represented approximately 22.5% of the Education Stabilization Fund disbursements for the period under audit. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will take the following corrective action: 1 - The Southwest School Corporation will ensure that Davis Bacon rules are included in any RFP using federal funds. The Development Team will monitor to ensure that all documentation is received and retained. Responsible party and timeline for completion: Chris Stitzle, Superintendent – April 2024
FINDING 2023-005 Information on the federal program: Subject: Special Education Cluster (IDEA) - Reporting Federal Agency: Department of Education Federal Programs: Special Education Grants to States, Special Education Preschool Grants Assistance Listings Numbers: 84.027, 84.027X, 84.173, 84.173X...
FINDING 2023-005 Information on the federal program: Subject: Special Education Cluster (IDEA) - Reporting Federal Agency: Department of Education Federal Programs: Special Education Grants to States, Special Education Preschool Grants Assistance Listings Numbers: 84.027, 84.027X, 84.173, 84.173X Federal Award Numbers and Years (or Other Identifying Numbers): 19611-022-PN01, 20611-022-PN01, 21611-022-PN01, 22611-022-PN01, 22611-022-ARP, 23611-022-PN01, 20619-022-PN01, 21619-022-PN01, 22619-022-PN01, 22619-022-ARP, 23619-022-PN01 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness, Qualified Opinion Condition: The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the reporting requirements. The Cooperative had not designed or implemented adequate policies or procedures to determine that requests for reimbursement were submitted accurately and agreed to supporting documentation. There was a documented oversight, review, and approval process in place; however, the Cooperative did not adequately ensure that proper procedures were followed. Context: The School Corporation is a member of the Greene-Sullivan Special Education Cooperative (Cooperative). During fiscal year 2021-2022, the Cooperative operated the special education programs and spent the federal money on behalf of all its members.  As the grant agreements were between the Indiana Department of Education (IDOE) and each member school, the School Corporation was responsible for ensuring and providing oversight of the Cooperative. However, there was inadequate oversight performed by the School Corporation in order to ensure compliance with the Reporting compliance requirement. The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the reporting requirements. The Cooperative had not designed or implemented adequate policies or procedures to determine that requests for reimbursement were submitted accurately and agreed to supporting documentation. There was a documented oversight, review, and approval process in place; however, the Cooperative did not adequately ensure that proper procedures were followed. For fiscal year 2022, 51 Reimbursement Reports were tested. 14 Reimbursement Reports could not be traced to unit ledgers for expenditures, and 21 Reports did not have appropriate supporting documentation. For fiscal year 2023, 23 Reimbursement Reports were tested. Three Reimbursements Report did not agree to supporting documentation, and key line items could not be verified. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will take the following corrective action: 1 – Greene Sullivan Special Education Cooperative will implement a procedure that includes the requirement of proper documentation for all reimbursement requests, such as the detailed history report for each request submitted. The Director will then review each request prior to submission. Responsible party and timeline for completion: Chris Stitzle, Superintendent – April 1, 2024
FINDING 2023-004 Information on the federal program: Subject: Special Education Cluster (IDEA) – Procurement and Suspension and Debarment Federal Agency: Department of Education Federal Programs: Special Education Grants to States, Special Education Preschool Grants Assistance Listings Numbers: 8...
FINDING 2023-004 Information on the federal program: Subject: Special Education Cluster (IDEA) – Procurement and Suspension and Debarment Federal Agency: Department of Education Federal Programs: Special Education Grants to States, Special Education Preschool Grants Assistance Listings Numbers: 84.027, 84.027X, 84.173, 84.173X Federal Award Numbers and Years (or Other Identifying Numbers): 19611-022-PN01, 20611-022-PN01, 21611-022-PN01, 22611-022-PN01, 22611-022-ARP, 23611-022-PN01, 20619-022-PN01, 21619-022-PN01, 22619-022-PN01, 22619-022-ARP, 23619-022-PN01 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Procurement and Suspension and Debarment Audit Findings: Material Weakness, Qualified Opinion Condition: The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the procurement and suspension an debarment requirements. The Cooperative had not designed or implemented adequate policies or procedures to ensure that proper procurement procedures for micro or small purchases were followed. There was no oversight, review, or approval process in place and documented at the Cooperative to ensure proper procedures were followed and price or rate quotations were obtained, if required, or documentation to support limited procurement procedures. Context: The School Corporation is a member of the Greene-Sullivan Special Education Cooperative (Cooperative). During fiscal year 2021-2022 and 2022-2023, the Cooperative operated the special education programs and spent the federal money on behalf of all its members.  As the grant agreements were between the Indiana Department of Education (IDOE) and each member school, the School Corporation was responsible for ensuring and providing oversight of the Cooperative. However, there was inadequate oversight performed by the School Corporation in order to ensure compliance with the Procurement and Suspension and Debarment compliance requirement. Procurement Federal regulations allow for informal procurement methods when the value of the procurement for property or services does not exceed the simplified acquisition threshold, which is set at $250,000 unless a lower, more restrictive threshold is set by a non-Federal entity. As Indiana Code has set a more restrictive threshold of $150,000, informal procurement methods are permitted when the value of the procurement does not exceed $150,000. This informal process allows for methods other than the formal bid process. The informal process is divided between two methods based on thresholds. Micro-purchases, typically for those purchases $10,000 or under, and small purchase procedures for those purchases above the micro-purchase threshold, but below the simplified acquisition threshold. Micro-purchases may be awarded without soliciting competitive price rate quotations. If small purchase procedures are used, then price or rate quotations must be obtained from an adequate number of qualified sources. For fiscal year 2022, three vendors, totaling $88,772, were identified as being less than the simplified acquisition threshold of $150,000, but exceeding the $10,000 micro-purchase threshold. One of the three vendors was a bankcard used to pay several different vendors; however, individual determinations of amount spent by vendor could not be determined, and thus it was considered under this threshold. All three vendors were tested. For all three, the Cooperative did not obtain price or rate quotes nor was there documentation detailing the history of procurement, which must include the reason for the procurement method used. For fiscal year 2023, six vendors, totaling $264,106, were identified as being less than the simplified acquisition threshold of $150,000, but exceeding the $10,000 micro-purchase threshold. One of the six vendors was a bankcard used to pay several different vendors; however, individual determinations of amount spent by vendor could not be determined, and thus it was considered under this threshold. All six vendors were tested. For five of the six, totaling $252,906, the Cooperative did not obtain price or rate quotes nor was there documentation detailing the history of procurement, which must include the reason for the procurement method used. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Suspension and Debarment Prior to entering into subawards and covered transactions with federal award funds, recipients are required to verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded. “Covered transactions” include but are not limited to contracts for goods and services awarded under a non-procurement transaction (i.e., grant agreement) that are expected to equal or exceed $25,000. The verification is to be done by checking the SAMs exclusions, collecting a certification from that vendor, or adding a clause or condition to the covered transaction with that vendor. Upon inquiry of the School Corporation in order to review the procedures in place for verifying that a vendor with which it plans to enter into a covered transaction is not suspended, debarred, or otherwise excluded, the Cooperative disclosed they relied on a clause to be included in the vendor contracts to ensure compliance. Two covered transactions that equaled or exceeded $25,000 were identified. Both transactions, totaling $192,218, were selected for testing. One of the two transactions, totaling $44,883, included the appropriate clause. For the other vendor, the Cooperative did not verify the vendor’s suspension and debarment status prior to payment. The lack of internal controls and noncompliance regarding suspension and debarment were isolated to fiscal year 2023. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will take the following corrective action: 1 – Southwest School Corporation will ensure a system of internal control and procedures are in place and appropriate procurement procedures for goods and services are followed. 2 – The Cooperative will post any openings that exceed the small purchase threshold in the local newspapers, within the office, and on the cooperative website. Any and all proposals will be presented to the Cooperative Board of Directors for approval. Responsible party and timeline for completion: Chris Stitzle, Superintendent – April 1, 2024
FINDING 2023-002 Information on the federal program: Subject: Special Education Cluster (IDEA) - Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Federal Agency: Department of Education Federal Programs: Special Education Grants to States, Special Educ...
FINDING 2023-002 Information on the federal program: Subject: Special Education Cluster (IDEA) - Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Federal Agency: Department of Education Federal Programs: Special Education Grants to States, Special Education Preschool Grants Assistance Listings Numbers: 84.027, 84.027X, 84.173, 84.173X Federal Award Numbers and Years (or Other Identifying Numbers): 19611-022-PN01, 20611-022-PN01, 21611-022-PN01, 22611-022-PN01, 22611-022-ARP, 23611-022-PN01, 20619-022-PN01, 21619-022-PN01, 22619-022-PN01, 22619-022-ARP, 23619-022-PN01 Pass-Through Entity: Indiana Department of Education Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Audit Finding: Material Weakness, Qualified Opinion Condition: The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance compliance requirements. The Cooperative had not designed or implemented adequate policies or procedures to determine that grant expenditures were for the excess costs of providing special education and related services to children with disabilities, were in conformance with the applicable cost principles and were obligated during the award period of performance. There was no documented oversight, review, or approval process in place at the Cooperative to ensure expenditures were allowable, conformed with cost principles and were incurred during the period of performance. Context: The School Corporation is a member of the Greene-Sullivan Special Education Cooperative (Cooperative). During fiscal year 2021-2022 and 2022-2023, the Cooperative operated the special education programs and spent the federal money on behalf of all its members.  As the grant agreements were between the Indiana Department of Education (IDOE) and each member school, the School Corporation was responsible for ensuring and providing oversight of the Cooperative. However, there was inadequate oversight performed by the School Corporation in order to ensure compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance compliance requirements. The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance compliance requirements. The Cooperative had not designed or implemented adequate policies or procedures to determine that grant expenditures were for the excess costs of providing special education and related services to children with disabilities, were in conformance with the applicable cost principles and were obligated during the award period of performance. There was no documented oversight, review, or approval process in place at the Cooperative to ensure expenditures were allowable, conformed with cost principles and were incurred during the period of performance. The lack of internal controls was a systemic issue throughout the audit period. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will take the following corrective action: 1 – All invoices, as well as receipts, will be documented upon receipt by the Director of Special Education at Greene Sullivan Special Education Cooperative. After this takes place, The Director of Finance at Greene Sullivan Special Education Cooperative will then create vouchers and receipts accordingly. Prior to submission, the Director of Special Education of Greene Sullivan Special Education Cooperative will verify all documents for accuracy. The Superintendent and Treasurer of Southwest School Corporation will review the documentation for the Cooperative at lease semi-annually. Responsible party and timeline for completion: Chris Stitzle, Superintendent – April 1, 2024
March 18, 2024 U.S. Department of Education and U.S. Department of Homeland Security Washington, D.C. Unified School District No. 307 respectfully submits the following corrective action plan for the year ended June 30, 2023. SSC CPAs, P.A. 3025 Cortland Circle, Suite 201 Salina, Kansas 67401 Au...
March 18, 2024 U.S. Department of Education and U.S. Department of Homeland Security Washington, D.C. Unified School District No. 307 respectfully submits the following corrective action plan for the year ended June 30, 2023. SSC CPAs, P.A. 3025 Cortland Circle, Suite 201 Salina, Kansas 67401 Audit period: Year ended June 30, 2023 The findings from the June 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section I of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-FINANCIAL STATEMENT AUDIT None. FINDINGS-FEDERAL AWARD PROGRAMS AUDIT 2023-001 Preparation of and Internal Controls over Schedule of Expenditures of Federal Awards Preparation (Material Weakness) Federal Agencies: U.S. Department of Education and U.S. Department of Homeland Security Program Names: Education Stabilization Fund and Disaster Grant – Public Assistance Assistance Listing Numbers: 84.425 and 97.036 Award Period: June 30, 2023 Recommendation: The Board of Education and management should review the financial reporting process. Once this review is complete, the District should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure that the District prepares the schedule conformity with Uniform Guidance. Action Taken (Unaudited): Management plans to develop proper written policies and procedures for the internal control over compliance to ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance. Contact Name – Cher Richards Expected Completion Date -06/30/2024 If the U.S. Department of Education or U.S. Department of Homeland Security has questions regarding this plan, please call Cher Richards at 785-914-5602. Sincerely yours, Cher Richards District Treasurer Unified School District No. 307
The finding from Section III — Federal Awards Findings and Questioned Costs Finding 2023-002 — Cash Management and Reporting Condition: The District did not file the required quarterly reports for June 2023 for grant #223-210073 and #225-210073 in a timely man...
The finding from Section III — Federal Awards Findings and Questioned Costs Finding 2023-002 — Cash Management and Reporting Condition: The District did not file the required quarterly reports for June 2023 for grant #223-210073 and #225-210073 in a timely manner within the 10-day requirement. The District did not file the required quarterly report for June 2023 for grant #200-210073. Also, the District did not file the required final expenditure report for grant #200-200073 timely. Views of Responsible Officials and Planned Corrective Actions: The District Business Manager will work with all involved in the process of the Federal Grants filing the expenditure reports quarterly and filing of the final expenditure reports. Procedures will include creating a calendar with the due dates, reporting the expenditures in the accounting software and creating a report with the expenses listed for the month and quarterly. Account numbers have been created according to the PDE accounting manual for the recording of all expenses and revenue for each federal grant. All expenditures will be recorded correctly and in a timely manner. The person responsible for the corrective action plan will be the Business Manager and the anticipated completion date will be June 30, 2024.
The Organization will prepare and file the required performance reports as required by the terms of the grant agreement.
The Organization will prepare and file the required performance reports as required by the terms of the grant agreement.
The Organization will revise its procurement policy to include current language and the required elements of 2 CFR 200.318-.327.
The Organization will revise its procurement policy to include current language and the required elements of 2 CFR 200.318-.327.
FINDING 2023-003 Information on the federal program: Subject: Education Stabilization Fund – Advance Draws Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Entity: Indiana Department of Educatio...
FINDING 2023-003 Information on the federal program: Subject: Education Stabilization Fund – Advance Draws Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs- Cost Principles Audit Finding: Material Weakness, Qualified Opinion Condition: The School Corporation requested reimbursement prior to incurring expenditures under federal grant awards. An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Activities Allowed or Unallowed, Allowable Costs- Cost Principles compliance requirements. Context: During testing disbursements charged to ESF grants, we noted advance payments were received during the audit period prior to allowable costs being incurred by the School Corporation impacting the following Education Stabilization Fund grant awards: ● The School Corporation submitted a claim for reimbursement for $43,864 from the ESSER I grant award (84.425D) which was receipted on August 24, 2021. As of August 24, 2021, the School Corporation had incurred $41,674 of grant expenditures. The remaining $2,190 was disbursed on April 12, 2022. ● The School Corporation submitted a claim for reimbursement for $148,822 from the ESSER II grant award (84.425D) which was receipted on July 28, 2021. There were no expenditures incurred as of the date of the reimbursement request. The School Corporation began incurring expenditures after the advance payment, however, as of June 30, 2022, the School Corporation had an unspent cash balance of $24,613 in the ESSER II fund because of the advance payment. The School Corporation did not request any reimbursements for the period of July 1, 2022 through June 30, 2023 and continued to incur expenditures. As of June 30, 2023, the School Corporation had an unspent cash balance of $16,145. FINDING 2023-003 (Continued) ● The School Corporation submitted two claims for reimbursements from the ESSER III grant award (84.425U) during fiscal year 2022. The first claim reimbursement was receipted on November 24, 2021, in the amount of $52,210. The second claim reimbursement request was receipted on June 22, 2022, in the amount of $144,649. The School Corporation had incurred expenditures as of the date of each claim reimbursement requests, however, the amount claimed for reimbursement exceeded expenditures incurred resulting in advance payments being received. As of June 30, 2022, the School Corporation had an unspent cash balance of $88,348 in the ESSER III fund as a result of the advance payment. The School Corporation did not request any claims for reimbursements for the period of July 1, 2022 through June 30, 2023 and continued to incur expenditures. As of June 30, 2023, the School Corporation had an unspent cash balance of $21,842 in the ESSER III fund because of the advance payments. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. Going forward the reimbursement will be prepared by the Assistant Superintendent once the funds have been spent and the Corporation Treasurer will review the reimbursement before it is submitted. Responsible Party and Timeline for Completion: The Assistant Superintendent, David Hobaugh, and the Corporation Treasurer, Kristina James, will oversee the corrective action plan and will be implemented immediately.
View Audit 296613 Questioned Costs: $1
FINDING 2023-006 Finding Subject: Child Nutrition Cluster – Procurement, Suspension, and Debarment Summary of Finding: Internal controls were not in place to ensure compliance with requirements related to the grant agreement, specifically regarding procurement, suspension, and debarment. Contact Per...
FINDING 2023-006 Finding Subject: Child Nutrition Cluster – Procurement, Suspension, and Debarment Summary of Finding: Internal controls were not in place to ensure compliance with requirements related to the grant agreement, specifically regarding procurement, suspension, and debarment. Contact Person Responsible for Corrective Action: Scott Weltz, Amanda Brackett Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12.in.us, bracketa@frankfort.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Internal controls will be established and followed to ensure compliance with requirements related to the grant agreement. The Treasurer will review procurement procedures related to vendors outside of the co-op, both related to the ‘small-purchase’ threshold as well as verifying if vendors are suspended and/or debarred. Anticipated Completion Date: Effective immediately and ongoing
FINDING 2023-003 Finding Subject: COVID-19 – Education Stabilization Fund – Reporting Summary of Finding: Internal controls were not in place to ensure compliance with requirements related to reporting. Contact Person Responsible for Corrective Action: Scott Weltz, Michelle Wolfe Contact Phone Numbe...
FINDING 2023-003 Finding Subject: COVID-19 – Education Stabilization Fund – Reporting Summary of Finding: Internal controls were not in place to ensure compliance with requirements related to reporting. Contact Person Responsible for Corrective Action: Scott Weltz, Michelle Wolfe Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12.in.us, wolfem@frankfort.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Director shall submit the report after the Treasurer reviews and verifies the information in the report. Such measures will prevent future misstatements and provide the proper internal controls. Anticipated Completion Date: Effective immediately and ongoing
2023-003 - #84.425U COVID-19 Elementary and Secondary School Emergency Relief Fund III Federal Grantor: U.S. Department of Education Pass-through Award Number: 2022-291673-DPI-ESSERFIII-165 Pass-through Entity: Wisconsin Department of Public Instruction Condition: There were Education Stabilizati...
2023-003 - #84.425U COVID-19 Elementary and Secondary School Emergency Relief Fund III Federal Grantor: U.S. Department of Education Pass-through Award Number: 2022-291673-DPI-ESSERFIII-165 Pass-through Entity: Wisconsin Department of Public Instruction Condition: There were Education Stabilization Fund construction projects performed by contractors. Grant expenditures for the projects paid by the Education Stabilization Fund totaled $556,368. There was not a prevailing wage clause in the contracts and certified payrolls were not received. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts, subject to wage rate requirements, a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that wage rate requirements applied to the construction projects. Effect: A reimbursement request was made for expenditures that did not comply with wage rate requirements. Questioned Costs: $556,368 Auditor’s Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund. Grantee Response: The District has implemented additional procedures to ensure prevailing wage rate requirements are included in all contracts funded by federal programs. Contact Person: Mary Prielipp Anticipated Completion: June 30, 2024
View Audit 296603 Questioned Costs: $1
Rush Springs Public Schools will develop internal controls to meet the requirements of the Davis-Bacon Act. The District will make sure that any federal awards used on construction projects are in compliance with the Act by not only including the prevailing wage clauses in the construction contract...
Rush Springs Public Schools will develop internal controls to meet the requirements of the Davis-Bacon Act. The District will make sure that any federal awards used on construction projects are in compliance with the Act by not only including the prevailing wage clauses in the construction contract , but also ensuring that federal wage rates and fringes are met. The District will ensure these wages are met by collecting and reviewing weekly certified payroll reports supplied by either the contractor or subcontractor. To ensure complance with the Davis-Bacon Act, Rush Springs Public Schools will post all required items at the work site. This Corrective Action Plan will be implemented immediately beginning on January 10, 2024.
2023-021. Working Capital Reserves in Excess of Federal Guidelines State Agency: Public Employee Health Program Federal Agency: Various Long Term Disability PEHP will work with State Finance to determine the federal portion of the excess reserves on June 30, 2024, and refund it by June 30, 2025. Sta...
2023-021. Working Capital Reserves in Excess of Federal Guidelines State Agency: Public Employee Health Program Federal Agency: Various Long Term Disability PEHP will work with State Finance to determine the federal portion of the excess reserves on June 30, 2024, and refund it by June 30, 2025. State Dental PEHP will work with State Finance to determine the federal portion of the excess reserves on June 30, 2024, and refund it by June 30, 2025. Medicare Supplement PEHP will work with State Finance to determine the federal portion of the excess reserves on December 31, 2023, and refund it by June 30, 2025. Contact Person: Rob Dolphin, Chief Finance Officer, URS, rob.dolphin@urs.org Anticipated Completion Date: June 30, 2025
2023-020. Working Capital Reserves in Excess of Federal Guidelines State Agency: Department of Governmental Operations Federal Agency: Various Division of Purchasing and General Services Cooperative Contract Management Fund – Public entities in Utah rely on the Division of Purchasing and General Ser...
2023-020. Working Capital Reserves in Excess of Federal Guidelines State Agency: Department of Governmental Operations Federal Agency: Various Division of Purchasing and General Services Cooperative Contract Management Fund – Public entities in Utah rely on the Division of Purchasing and General Services (State Purchasing) to maintain the cooperative contract program to assist with public procurement in Utah. The usage of state cooperative contracts by public entities continues to increase yearly, resulting in a corresponding increase in the collection of administrative fees. State Purchasing continues to review contract administrative fees on state cooperative contracts as each contract expires and is resolicited. This is a slow process since State Purchasing has approximately 1,200 cooperative contracts that expire only every five years and are then resolicited. While State Purchasing is allowed under law to collect up to a 1.0% administrative fee on each cooperative contract, currently the average administrative fee is approximately 0.35%, a decrease of 18.6% from the average contract administrative fee in fiscal year 2022. The Division of Purchasing and General Services also continues to work with the Department of Government Operations executive leadership to request the Utah Legislature appropriate out a portion of the excess reserves in the Cooperative Contract Management Fund. The calculation of the federal portion of these transfers will be submitted to Cost Allocation Services for review and approval when these transfers are completed. Federal Surplus Property Fund- Surplus Property anticipated relocating by the end of fiscal year 2023 with the completion of the new Utah State Prison. Due to schedule changes, the new location for Surplus Property was not completed in time and the new anticipated relocation date is the end of fiscal year 2025. At the time of relocation, Surplus Property will use the excess reserve funds to move and furnish the new location, including replacing aged equipment. Contact Person: Windy Aphayrath, waphayrath@utah.gov, Director, Division of Purchasing and General Services Anticipated Correction Date: June 30, 2025 Division of Finance Purchasing Card Fund – State Finance is in the process of implementing a new travel and expense reporting system for all state agencies. This system will simplify travel approvals, travel reimbursements, and reduce the administrative burden for the purchasing card (P-Card) expense reports on state agency personnel. To cover system implementation costs, State Finance elected not to distribute the rebates received from U.S. Bank related to state agency P-Card spending for calendar years 2021, 2022, and 2023. Rebates were still sent to participating entities external to the primary government. The anticipated completion date for the new system is the end of the calendar year 2024. State Finance will then review annually the costs of the system, develop a cost allocation strategy between the travel and P-Card programs, and adjust travel rates to cover the travel program's ongoing costs. The P-Card program will then distribute any remaining P-Card rebates to state agencies respective to their spend. This effort should reduce and/or eliminate any excess federal reserves in the P-Card fund by the end of fiscal year 2025. Contact Person: Allyson Branch, abranch@utah.gov, Assistant Director, Division of Finance Anticipated Correction Date: June 30, 2025 Division of Risk Management Workers' Compensation Fund – The Division of Risk Management did not request an increase in rates for fiscal year 2024 for the Workers Compensation Fund. It is also anticipated that premiums for worker compensation insurance for fiscal year 2025 will increase. This increase will help bring this fund back into compliance. The Division of Risk Management will also reevaluate this program at the end of fiscal year 2024 to determine if a legislative request to transfer funds out and/or refund the federal portion of retained earnings is needed to reduce and/or eliminate the excess federal reserves remaining in this fund. Contact Person: Rachel Terry, rachelgterry@utah.gov, Director, Division of Risk Management Anticipated Correction Date: June 30, 2025 Division of Technology Services Communication Services – The fiscal year 2024 Communication Services rate was set to under recover the cost of providing this service by $276,000. The fiscal year 2025 rate was also set to under recover the cost of providing this service by an additional $398,000. DTS plans to annually review and adjust rates and issue mid-year rebates, if necessary, to bring DTS Communication Services into compliance with federal excess reserve guidelines by the end of fiscal year 2025. Mainframe Services – This service will be coming to an end by fiscal year 2024. As this service ends, DTS will issue rebates of any remaining Mainframe Services retained earnings to the state agencies who used the system. Contact Person: Dan Frei, dfrei@utah.gov, Finance Director, Division of Technology Services Anticipated Correction Date: June 30, 2025 Division of Human Resource Management Human Resources Field Services – During fiscal year 2023, the Division of Human Resource Management worked to better align expenses with the corresponding rate. A cost allocation plan was developed to accomplish this goal. As a result of that effort, the Human Resources Field Services rate was decreased, and the Payroll Services and Core Services rates were increased for fiscal year 2025. The Division anticipates that these rate adjustments will eliminate the excess reserves. Contact Person: John Barrand, jbarrand@utah.gov, Director, Division of Human Resource Management Anticipated Correction Date: June 30, 2025
Finding 383483 (2023-006)
Material Weakness 2023
2023-006. Lack of Controls over Food Benefit Payments State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services The Division of Family Health (DFH) will continue efforts to ensure proper management of the WIC program. The department and DFH will co...
2023-006. Lack of Controls over Food Benefit Payments State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services The Division of Family Health (DFH) will continue efforts to ensure proper management of the WIC program. The department and DFH will consider possible improvements for managing third party food benefit redemptions. Contact Person: Mykio Saracino, Assistant Office Director, 385-228-4798 Anticipated Correction Date: December 31, 2024
Finding 383481 (2023-005)
Material Weakness 2023
2023-005. Foster Care Eligibility Reviews Not Adequately Completed State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services The Division of Child and Family Service (DCFS) will continue efforts for accurate IV-E eligibility determination. The depa...
2023-005. Foster Care Eligibility Reviews Not Adequately Completed State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services The Division of Child and Family Service (DCFS) will continue efforts for accurate IV-E eligibility determination. The department and DCFS will further consider reasonable control circumstances for IV-E eligibility determination. Contact Person: Tenille Tingey, DCFS Financial Manager, 385-270-3322 Anticipated Correction Date: Fiscal Year 2024
Finding 383477 (2023-010)
Significant Deficiency 2023
2023-010. Pharmacy Rebate Invoices Not Checked for Accuracy and Timeliness State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services We will immediately reinstate the controls and provide training to the responsible employee and the backup to monit...
2023-010. Pharmacy Rebate Invoices Not Checked for Accuracy and Timeliness State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services We will immediately reinstate the controls and provide training to the responsible employee and the backup to monitor the accuracy and timeliness of the rebates. We will ensure that this training includes a standard operating procedure detailing how these reviews will be conducted. Contact Person: Jamie Sorenson, Office Director, Office of Financial Services, 385-290-5380 Anticipated Correction Date: March 31, 2024
Finding 383473 (2023-009)
Significant Deficiency 2023
2023-009. Untimely Implementation of Provider Eligibility Requirement Changes State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services The Division of Integrated Healthcare has a standard operating procedure to ensure timely compliance for new Med...
2023-009. Untimely Implementation of Provider Eligibility Requirement Changes State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services The Division of Integrated Healthcare has a standard operating procedure to ensure timely compliance for new Medicaid rules, regulations, policy changes and other operational requirements. As additional system requirements are identified, that information is entered into the Division’s tracking system called “SPOT”. SPOT is an effective “ticket” system that manages future enhancements, change requests, defects, and other system needs. Prioritization and escalation of the “ticket” ensures that complex or high priority items receive the necessary attention promptly. During the time of the audit finding, DIH was involved in the final stages of PRISM testing and go-live activities and could not make any system changes or it would have potentially impacted the release of the PRISM system. The effective date of the SPOT standard operating procedure was April 3, 2023. Utah Medicaid is in compliance with the audit recommendation. Contact Person: Shandi Adamson, Office Director, Office of Medicaid Operations, 801-793-7261 Anticipated Correction Date: April 3, 2023
Finding 383469 (2023-008)
Significant Deficiency 2023
2023-008. Noncompliance with Timing of Health and Safety Surveys State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services DLBC/OL is taking the following steps to achieve compliance with required survey timeframes: 1. Increase Health Facility Lice...
2023-008. Noncompliance with Timing of Health and Safety Surveys State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services DLBC/OL is taking the following steps to achieve compliance with required survey timeframes: 1. Increase Health Facility Licensing fees by 43% to facilitate the hiring of 4 additional staff. 2. Dedicate one-time funds for contracting with a third-party surveyor to help address Health and Safety survey backlog. 3. Work with the DHHS, Office of Innovation to review the health facility team’s processes to improve efficiencies. 4. Organize a separate complaint investigation unit to help expedite complaint and survey completion. Contact Person: Simon Bolivar, Office Director, Office of Licensing, 801-803-4618 Anticipated Correction Date: July 1, 2024
Finding 383465 (2023-007)
Significant Deficiency 2023
2023-007. Noncompliance with Required Audit of MCO Encounter and Financial Data State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services The department started encounter data validation audits August 22, 2023. These audits are being conducted by t...
2023-007. Noncompliance with Required Audit of MCO Encounter and Financial Data State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services The department started encounter data validation audits August 22, 2023. These audits are being conducted by the department’s contracted auditor. The department is currently having discussions with CMS about the types of audits that satisfy the financial audit part of the regulatory requirement. When the results from the encounter data and financial audits are completed by the department’s contracted auditor, they will be posted to the department’s website. Contact Person: Greg Trollan, Office Director, Office of Managed Healthcare, 801-538-6088 Anticipated Correction Date: December 31, 2024
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