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Finding 390923 (2023-013)
Significant Deficiency 2023
Dear Mr. Waguespack, LWC does concur with this finding that we did not have adequate controls in place to review and ensure timely submission to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) website. Corrective action: Staff responsible for entering data ...
Dear Mr. Waguespack, LWC does concur with this finding that we did not have adequate controls in place to review and ensure timely submission to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) website. Corrective action: Staff responsible for entering data into the FSRS website will do so no later than the end the month following the month the obligation was made. The responsible staff will print the FFATA report and submit to the appropriate supervisor as evidence that the data was submitted timely and a copy of said report will be maintained within the Office of Workforce Development and made available upon request. If you have any questions, please contact me at (225) 342-3474 or email at swilliams@lwc.la.gov.
Dear Mr. Waguespack, Please find enclosed the Louisiana Workforce Commission's response to the above-mentioned finding. On behalf of Secretary Susana Schowen, we thank your staff for their guidance and technical assistance throughout this process. If you have any questions or need additional inform...
Dear Mr. Waguespack, Please find enclosed the Louisiana Workforce Commission's response to the above-mentioned finding. On behalf of Secretary Susana Schowen, we thank your staff for their guidance and technical assistance throughout this process. If you have any questions or need additional information, please do not hesitate to give me a call at (225) 342-3474 or email at swilliams@lwc.la.gov. LWC Response: LWC concurs with this finding concluding that five close out letters were issued 111 to 183 days after monitoring report issuance and that four close out letters were not issued as of January 2024 while the monitoring reports for these reviews were issued more than 195 days prior. LWC's policy has established timelines for the monitoring process, which should be followed by all monitoring staff. As established in policy, a subrecipient has 45 days of issuance of the monitoring report to submit their corrective action plan (CAP). An extension may be granted for an additional 15 days per approval of the monitoring director. Failure to submit the CAP within the allowable timeline will result in the issuance of an initial determination letter. The subrecipient has 30 days to respond. At this point, the monitoring staff works diligently back and forth with the subrecipient in an attempt to resolve the findings. This process can be a lengthy process and may extend beyond the established timelines within the policy. Staff’s goal is to resolve each finding to re-establish compliance. However, not all efforts may resolve each finding. At the conclusion of this process and when all avenues have been exhausted, LWC makes a final determination and issues a letter. Additionally, The Louisiana Workforce Commission is currently implementing changes within the structure of the agency's executive leadership. During this transition, deficiencies and neglect of internal controls has been discovered within the Office of Workforce Development leading to non-compliance of monitoring policy and procedures. The individuals responsible for most of the neglect are no longer employed with the agency. With the onboarding of new leadership, LWC will ensure compliance with all federal and state regulations, internal controls and policies, and transparency within all levels of management. The agency will provide timely and meaningful monitoring actions and provide continuous staff training and development. LWC is currently reviewing our monitoring policy and will make updates to implement all necessary changes ensuring compliance by March 1, 2024. Staff will be re-trained on the required monitoring process and will be required to incorporate the learned information in their monitoring review process. Staff will participate in continuous trainings each quarter to identify any deficiencies in the process or in its implementation. LWC concurs with this finding concluding three Single Audit reports with findings affecting the WIOA cluster of programs, management decision letters were issued 66 to 264 days after the due date set by federal regulations. LWC staff responsible for the issuance of the management decision letters has since reviewed the policy to ensure an understanding of the submission timelines has been received and will apply this knowledge when processing the letters. For the two reports, LWC incorrectly issued management decisions letters noting no WIOA affected findings, LWC staff has performed a second review of the audit reports and management letters have been drafted and are currently under review. We expect that these management letters will be finalized and emailed to the two subrecipients within the month of February 2024, and will include follow-up requests for corrective actions on the identified findings where necessary. LWC will develop and issue a policy that requires the appointing authority to issue management decisions on Single Audit reports within six months of the acceptance of the audit report by the Federal Clearinghouse. The policy will also include second level approvals to ensure audit findings are properly identified and follow up procedures are established to ensure subrecipients take prompt and appropriate action on all audit findings. Staff will train on the proper review and submission of the single audit reports, what constitutes a finding for LWC/WIOA purposes and the work that should be completed to close out the review. A process has been implemented that requires the LWC staff responsible for the review and submission of the single audit reports to obtained an approval of all work performed prior to the issuance of the letters to the subreceipents'.
Dear Mr. Waguespack: The Division of Administration, Louisiana Office of Community Development (LOCD) is submitting the following in response to the audit finding titled "Restore Louisiana Homeowner Assistance Program Awards Identified for Grant Recovery." LOCD acknowledges the LLA finding of "Res...
Dear Mr. Waguespack: The Division of Administration, Louisiana Office of Community Development (LOCD) is submitting the following in response to the audit finding titled "Restore Louisiana Homeowner Assistance Program Awards Identified for Grant Recovery." LOCD acknowledges the LLA finding of "Restore Homeowner awards identified for Grant Recovery." In response to the 2016 Floods, the LOCD created the Restore Louisiana Homeowner Assistance Program (HAP). Grant recapture procedures were established from the beginning of the program and have been implemented timely. It is impossible to administer a disaster recovery program that will not have certain files requiring grant recapture during the life of the program. The Restore Program requires a duplication of benefits check on all files prior to grant execution. For example, it is always possible an applicant may receive additional funding, e.g., insurance proceeds that are deemed duplicative by law. The Restore Program has controls in place to capture these amounts in the grants management system, subrogation agreements executed with each applicant, and recapture procedures to recover the funds. From the very beginning, the Restore Program was created to minimize the potential of applicants' ending up in recapture. As a result, the state has issued over $670 million to 17,262 homeowners of which 86, or 0.50% are in recapture. As the Restore Homeowner Program comes to a close, LOCD does not anticipate further files requiring recapture of funds. LOCD agrees with the observation of 10 files with a potential grant recapture as a necessary ongoing activity for the Program. LOCD will continue to follow the established recapture procedures for these grant awards to ensure ultimate compliance, however, this is not a corrective action, but rather the continued implementation of program protocols. The contact person responsible for these ongoing compliance activities is Ginger Moses, OCD Chief Operating Officer. The anticipated completion date for activities addressing this finding will coincide with the closing of the Restore Louisiana program. If you have questions or require additional information, please feel free to contact me.
View Audit 301612 Questioned Costs: $1
Dear Mr. Waguespack : The Division of Administration, Louisiana Office of Community Development (OCD) submits the following in response to the audit finding titled "Inadequate Recovery of Small Rental Property Program Loans." The Small Rental Property Program (SRPP) has two tiers of compliance ob...
Dear Mr. Waguespack : The Division of Administration, Louisiana Office of Community Development (OCD) submits the following in response to the audit finding titled "Inadequate Recovery of Small Rental Property Program Loans." The Small Rental Property Program (SRPP) has two tiers of compliance obligations. The federal compliance requirements are for the CDBG funds issued to a borrower to meet a National Objective and be expended on an Eligible Activity. On top of the federal requirements, the State has its own program requirements. Upon the initial placement of an eligible tenant in a habitable unit at a restricted rent amount, the U.S. Department of Housing and Urban Development (HUD) requirements have been satisfied. Most of the matters made the subject of your report deal with the borrower's non-compliance with the State's program rules, not the HUD requirements. OCD has allocated approximately $653 million to the SRPP program to fund approximately 4,500 applicants and we maintain an ongoing monitoring process to promote compliance and continued availability of affordable housing. Consistent with the program's mission of preserving and expanding much needed affordable housing, OCD's primary focus for the SRPP is to assist property owners in achieving and maintaining compliance, i.e., creating and continuing affordable housing opportunities, as opposed to foreclosure and/or recapture of funds, and are, therefore, not subject to recapture by HUD. In summary, as of June 30, 2023, the LLA reports that 814 applicant files have been identified as noncompliant. Of these, 166 files have been determined to be uncollectible, leaving 648 files that are actively being addressed. OCD's compliance and repayment efforts relating to the state imposed continuing requirements of the program are ongoing. The optimal outcome of these efforts is the continued availability of affordable housing through compliance. In June 2016, OCD, working with the Louisiana Housing Corporation (LHC) and HUD, identified 397 SRPP borrowers that did not meet a National Objective. Immediately thereafter, OCD's Legal Section and LHC program staff began communicating with non-compliant borrowers and evaluating proposed workouts. OCD sent default letters to and initiated recapture efforts on all borrowers. Each file is processed with a goal of either achieving compliance, securing repayment, or identifying another viable workout plan. As of June 30, 2023, of the 397 files identified, 83 borrowers have become compliant, 20 have either partially or fully repaid their loans, 18 borrowers have transferred their housing obligations to other compliant properties and 166 have been determined uncollectable for various reasons. As noted in the audit, OCD continues to seek technical assistance regarding the enforcement of mortgages through the judicial foreclosure/public auction process. In conclusion, OCD will continue the efforts to recover those loans determined to be ineligible in accordance with policies and procedures that are acceptable to HUD. Concurrently, OCD will also continue to assist rental property owners to become compliant and to resolve any program compliance issues, thus increasing available affordable rental housing and reducing or eliminating the need to recapture funds from rental property owners, where appropriate. The contact person responsible for the corrective action is Ginger Moses, OCD Chief Operating Officer. Once approved by HUD, the anticipated completion date for this corrective action plan will coincide with the closing of the SRPP program. If you have questions or require additional information, please feel free to contact me.
View Audit 301612 Questioned Costs: $1
Finding 390902 (2023-005)
Significant Deficiency 2023
Dear Mr. Waguespack, Please accept this letter as the Louisiana Department of Education's (LDOE) official response to the draft finding submitted by your office of the financial audit for the LDOE for the fiscal year ending June 30, 2023. A review of the audit finding has been conducted, and we con...
Dear Mr. Waguespack, Please accept this letter as the Louisiana Department of Education's (LDOE) official response to the draft finding submitted by your office of the financial audit for the LDOE for the fiscal year ending June 30, 2023. A review of the audit finding has been conducted, and we concur with the finding. Recommendation: While there was significant improvement in reporting for ESF, LDOE should continue to strengthen internal controls to ensure accurate information is reported and should correct all amounts and obligation dates that were previously reported incorrectly. LDOE Response: LDOE has prioritized addressing the implementation of procedures and internal controls to comply with the requirements of FFATA. As noted in the recommendation, the agency has made significant improvements with the corrective actions taken during the 2022-2023 year in regard to the internal FFATA data reporting process. To remedy the issues identified previously, LDOE hired and trained a full-time staff person in October 2022 to be responsible for the accuracy and timeliness of reporting FFATA fiscal data. In addition, LDOE developed a FFATA reporting tracker to strengthen internal controls, which has aided in improving the agency’s ability to ensure the reporting of accurate and timely data to the FFATA Subaward Reporting System (FSRS). All of these measures were in place for the FY23 FFATA reporting timelines noting that the LDOE had committed to a deadline of September 2023 to correct all prior year findings, and the LDOE met this timeline. LDOE now has the FFATA reporting infrastructure in place to ensure reports are successfully submitted accurately and timely to FSRS for the Education Stabilization Fund (ESF) and ESEA. During the current audit, it was determined that the FY2021 and FY2022 FFATA prior year findings across the majority of programs were cleared. Because of LDOE’s commitment to accurate and timely data reporting, the LDOE staff conducted its own review of fiscal data submitted to comply with FFATA. During this review, the LDOE staff identified a discrepancy in the report that is generated by an internal system used for the FFATA reporting for the Child Nutrition Cluster (CNC) and the Child and Adult Care Food Program (CACFP). It was determined that the report had been programmed in 2011 to pull cumulative totals versus monthly totals each month. Therefore, this system’s incorrect reporting had gone unnoticed by LDOE and the USDA for over a decade. This data reporting error resulted in an over-reporting of the total awards for CNC and CACFP since the creation and implementation of FFATA reporting. LDOE had received no guidance from the awarding agency regarding the FFATA reporting until contacting them recently for advice on this matter. LDOE notified the Legislative Auditors of this internal control issue during the onset of the FFATA CNC portion of the audit. The LLA has since noted this inaccuracy as a finding. Since identifying this discrepancy, LDOE has taken initiative to resolve this issue by contacting the system developer to change the generated report, contacting the awarding agency (USDA) for clarification surrounding the CNC and CACFP FFATA reporting requirements, and submitting a helpdesk ticket in the FSRS to correct the FY2023 reported amounts. During the FY23 audit of the ESF Elementary and Secondary School Emergency Relief program funded by the Coronavirus Response and Relief Supplemental Appropriation Act and the American Rescue Plan Act, a test of 474 subawards totaling $293,847,931 related to 20 subwardees showed that LDOE reported the incorrect obligation date in the FSRS for 47 subawards totaling $967,987. This one issue represents an error rate of only .3%. Although the program fiscal data was accurate, the timeliness of when it was reported could have been slightly better. This immaterial issue will be resolved with increased staff training and enhancement of verification routines. LDOE has taken the requirement to submit reports accurately and timely very seriously and continues to dedicate extra time and resources to ensure all data reporting is accurate. If you have any questions, you may contact Keisha Payton by telephone at 225-219-4426 or via email at keisha.payton@la.gov.
Condition: The Organization did not comply with the regulatory agreement requirement to have a security deposit cash account that meets or exceeds the security deposit liability account. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measure...
Condition: The Organization did not comply with the regulatory agreement requirement to have a security deposit cash account that meets or exceeds the security deposit liability account. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management will deposit funds to the security deposit cash account in order to meet the regulatory agreement requirement. Contact person responsible for corrective action: Lorinda Schalk, Chief Financial Officer / Treasurer Anticipated Completion Date: March 31, 2024
Identifying Number: 2023-001, 2023-002; Agency: internal; Name of Contact Person: Eric Kool, director of Polk County Community, Family and Youth Services; Anticipated completion date: Effective immediately/December 2023; Agency's response: Concur: We agree with this finding. The Community Family and...
Identifying Number: 2023-001, 2023-002; Agency: internal; Name of Contact Person: Eric Kool, director of Polk County Community, Family and Youth Services; Anticipated completion date: Effective immediately/December 2023; Agency's response: Concur: We agree with this finding. The Community Family and Youth Services (CYFS) team will obtain detailed reporting data and request supporting documentation from subrecipients to reconcile/review expenses quarterly. In addition, CFYS will have other personnel and Central Accounting assist in reviewing data to ensure accuracy.
Finding 390868 (2023-001)
Significant Deficiency 2023
Identifying Number: 2023-001, 2023-002; Agency: internal; Name of Contact Person: Eric Kool, director of Polk County Community, Family and Youth Services; Anticipated completion date: Effective immediately/December 2023; Agency's response: Concur: We agree with this finding. The Community Family and...
Identifying Number: 2023-001, 2023-002; Agency: internal; Name of Contact Person: Eric Kool, director of Polk County Community, Family and Youth Services; Anticipated completion date: Effective immediately/December 2023; Agency's response: Concur: We agree with this finding. The Community Family and Youth Services (CYFS) team will obtain detailed reporting data and request supporting documentation from subrecipients to reconcile/review expenses quarterly. In addition, CFYS will have other personnel and Central Accounting assist in reviewing data to ensure accuracy.
Federal Agency: U.S. Department of Transportation Program/Cluster: Highway Planning and Construction Federal Assistance Listing Number: 20.205 Pass‐through: California Department of Transportation Award No. and Year: 5923, 2022/2023 Compliance Requirement: Subrecipient Monitoring Type of Finding: Ma...
Federal Agency: U.S. Department of Transportation Program/Cluster: Highway Planning and Construction Federal Assistance Listing Number: 20.205 Pass‐through: California Department of Transportation Award No. and Year: 5923, 2022/2023 Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. All Public Works contracts receiving federal funding will be evaluated to determine if the vendor is a contractor or subrecipient going forward. This practice is already followed for the other divisions within the Department, and Public Works will now be included. Responsible Individual(s): James Bezek, Director of Resources Management Anticipated Completion Date: June 30, 2024
Federal Agency: U.S. Department of Health and Human Services Program/Cluster: Epidemiology and Laboratory Capacity for Infectious Diseases Federal Assistance Listing Number: 93.323 Pass‐through: California Department of Public Health Award No. and Year: COVID-19ELC48, COVID-19ELC106, 2021/2022 Compl...
Federal Agency: U.S. Department of Health and Human Services Program/Cluster: Epidemiology and Laboratory Capacity for Infectious Diseases Federal Assistance Listing Number: 93.323 Pass‐through: California Department of Public Health Award No. and Year: COVID-19ELC48, COVID-19ELC106, 2021/2022 Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Material Weakness in Internal Control over Compliance, Instances of Noncompliance Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. The purchasing division of General Services is in the process of updating the County’s purchasing and contracting policy. Input from stakeholders is being sought and an outside vendor engaged to assist with revisions. Responsible Individual(s): Lorraine Tang, Support Services Manager Anticipated Completion Date: June 2025
Federal Agency: U.S. Department of Housing and Urban Development Program/Cluster: Housing Voucher Cluster Federal Assistance Listing Number: 14.871, 14.879 Pass‐through: n/a – direct award Award No. and Year: CA131, 2022/2023 Compliance Requirement: Reporting Type of Finding: Material Weakness in In...
Federal Agency: U.S. Department of Housing and Urban Development Program/Cluster: Housing Voucher Cluster Federal Assistance Listing Number: 14.871, 14.879 Pass‐through: n/a – direct award Award No. and Year: CA131, 2022/2023 Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Views of Responsible Officials and Corrective Action Plan: The County spent many months contacting multiple agencies trying to report through the FSRS system on the multiple Housing Voucher awards, with no success. The County’s assigned Housing and Urban Development (HUD) office is the San Francisco regional office. Per their director, “These are systems that we don’t work with in HUD PIH so I won’t be able to be of assistance relative to this.” The County is unable to complete FFATA reporting for reasons outside of the County’s control. Responsible Individual(s): James Bezek, Director of Resources Management Anticipated Completion Date: Because the corrective action is outside of the County’s control, we cannot determine an anticipated completion date.
Federal Agency: U.S. Department of Housing and Urban Development Program/Cluster: Housing Voucher Cluster Federal Assistance Listing Number: 14.871, 14.879 Pass‐through: n/a – direct award Award No. and Year: CA131, 2022/2023 Compliance Requirement: Subrecipient Monitoring Type of Finding: Material ...
Federal Agency: U.S. Department of Housing and Urban Development Program/Cluster: Housing Voucher Cluster Federal Assistance Listing Number: 14.871, 14.879 Pass‐through: n/a – direct award Award No. and Year: CA131, 2022/2023 Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Views of Responsible Officials and Corrective Action Plan: The subrecipient agreement was updated to include required federal award identification elements and was approved by the Board of Supervisors and executed on July 25, 2023. Discussion between the County and the City of Vacaville, including several meetings about the new contract took place throughout the audit period of July 1, 2022 and June 30, 2023. The risk assessment was completed in November 2022. The risk assessment will be updated on an annual basis going forward. A site visit was conducted in December 2022. Monitoring activities were occurring for this contract but were not formally documented. Documentation will be retained as support monitoring activities are occurring for this contract going forward. Responsible Individual(s): James Bezek, Director of Resources Management Anticipated Completion Date: June 30, 2024
The district has developed and implemented internal controls to ensure that if federal awards are expended on construction all requirements of the Davis-Bacon Act will be met.
The district has developed and implemented internal controls to ensure that if federal awards are expended on construction all requirements of the Davis-Bacon Act will be met.
Finding 390775 (2023-001)
Significant Deficiency 2023
Management’s response/corrective action plan: Procedures have been recirculated to all responsible for purchases and bids that involve federal funds and acknowledgement of the oversight has been addressed with those responsible for checking SAM.gov for suspended and debarred vendors. An after the f...
Management’s response/corrective action plan: Procedures have been recirculated to all responsible for purchases and bids that involve federal funds and acknowledgement of the oversight has been addressed with those responsible for checking SAM.gov for suspended and debarred vendors. An after the fact check was done and determined the vendor used was neither suspended nor debarred. Procedures and policies will be reviewed with heads of departments on a quarterly basis and whenever federal funds are applied for.
Audit Period: Fiscal Year July 1, 2022 - June 30,2023 Re: Lima UMADAOP respectively submits the following corrective action plan for the year ended June 30, 2023. 2023-001 Reporting (Significant Deficiency) Recommendation: We suggest that Management engage in quarterly monitoring of their feder...
Audit Period: Fiscal Year July 1, 2022 - June 30,2023 Re: Lima UMADAOP respectively submits the following corrective action plan for the year ended June 30, 2023. 2023-001 Reporting (Significant Deficiency) Recommendation: We suggest that Management engage in quarterly monitoring of their federal expenditures. This proactive strategy will aid management in preparing the Schedule of Expenditures of Federal Awards (SEFA) at year-end, as the amounts will have undergone partial scrutiny for completeness and accuracy throughout the year. Corrective Action Plan: The Agency will review and strengthen all controls and make any necessary changes moving forward. The Accountant will provide any necessary training to the Bookkeeper as well as monitor and review all expenditures on monthly basis. The Accountant and the CEO will review the Schedule of Expenditures of Federal Awards (SEFA) on a quarterly basis to confirm the completeness and accuracy for all future audits. Responsible Party: CEO, Accountant, Bookkeeper Date Expected to be Corrected: Immediately
View Audit 301491 Questioned Costs: $1
FINDING: 2023-003- Housing Voucher Cluster, CFDA No. 14.871 and 14.879 - Inspections Recommendation: We recommend that management retain a list of properties that fail an inspection and subsequent documentation showing the dates of re-inspection and the results of subsequent inspections. Actions Pla...
FINDING: 2023-003- Housing Voucher Cluster, CFDA No. 14.871 and 14.879 - Inspections Recommendation: We recommend that management retain a list of properties that fail an inspection and subsequent documentation showing the dates of re-inspection and the results of subsequent inspections. Actions Planned/Taken in Response to Finding: Wadena HRA is beginning to place failed inspections in our MRI software as a reminder to follow-up on inspections and document the results of the follow up inspection in the software, and file. This new process will help ensure follow up inspections are documented. Contact Person Responsible for Corrective Action: Maria Marthaler, Executive Director Planned Completion Date : June 30, 2024
FINDING 2023-005 Finding Subject: COVID‐19 Education Stabilization Fund ‐ Reporting Summary of Finding: Reports were not supported by underlying accounting records. Contact Person Responsible for Corrective Action: Carrie Alford Contact Phone Number and Email Address: (812)254-5536 calford@wcs.k12.i...
FINDING 2023-005 Finding Subject: COVID‐19 Education Stabilization Fund ‐ Reporting Summary of Finding: Reports were not supported by underlying accounting records. Contact Person Responsible for Corrective Action: Carrie Alford Contact Phone Number and Email Address: (812)254-5536 calford@wcs.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Washington Community Schools like all other school corps across the state, got the requests for these reports with very little to no instruction of how to complete them. We weren’t told they would be part of the audit and therefore didn’t retain reports used to complete some of the reports. Going forward we will ensure reports proving numbers reported are available to SBOA. Anticipated Completion Date: 06/30/2024
FINDING 2023-002 Finding Subject: Child Nutrition Cluster ‐ Procurement and Suspension and Debarment Summary of Finding: Procurement procedures not met – Suspension and Debarment not verified Contact Person Responsible for Corrective Action: Carrie Alford Contact Phone Number and Email Address: 812-...
FINDING 2023-002 Finding Subject: Child Nutrition Cluster ‐ Procurement and Suspension and Debarment Summary of Finding: Procurement procedures not met – Suspension and Debarment not verified Contact Person Responsible for Corrective Action: Carrie Alford Contact Phone Number and Email Address: 812-254-5536 calford@wcs.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Washington Community Schools was under the impression that since Sodexo was the vendor for the purchases, the contract between Washington Community Schools and Sodexo was sufficient. Going forward, WCS will obtain contracts directly from the retailer even when Sodexo is the vendor in WCS files. If Sodexo makes purchases on behalf of WCS, they will obtain quotes from three retailers. WCS will request and maintain the quotes obtained by Sodexo. WCS will also check for any suspension and debarment for any vendor that Sodexo uses to purchase items for WCS. Anticipated Completion Date: 02/01/2024
2023-001 Block Grants for Prevention and Treatment of Substance Abuse – Assistance Listing No. 93.959 Recommendation: We recommend procedures be implemented to ensure that all costs charged to the grant are incurred within the grant period of performance. Explanation of disagreement with audit fin...
2023-001 Block Grants for Prevention and Treatment of Substance Abuse – Assistance Listing No. 93.959 Recommendation: We recommend procedures be implemented to ensure that all costs charged to the grant are incurred within the grant period of performance. Explanation of disagreement with audit finding: There is no disagreement with the finding. Action taken in response to finding: We have controls in place to ensure that costs charged to a grant are incurred within the grant period of performance. This finding exposed a vulnerability that circumvented our controls. We will use this finding to pinpoint the cause(s) and make the necessary corrective adjustments. Name(s) of the contact person(s) responsible for corrective action: Deborah Grupp-Patrutz and Steve Simmons Planned completion date for corrective action plan: Prior to June 30, 2024
2023-05: Timeliness of Deposits Name of contact person: Caroline Aultman, Executive Director Corrective Action: All receipts will be deposited in a timely manner once received by the Organization. Proposed completion date: The Board will implement the above procedure immediately.
2023-05: Timeliness of Deposits Name of contact person: Caroline Aultman, Executive Director Corrective Action: All receipts will be deposited in a timely manner once received by the Organization. Proposed completion date: The Board will implement the above procedure immediately.
Corrective Action Plan: The District has implemented financial policies and procedures to ensure a timely independent audit process and subsequent timely filing of the audit with the Federal Audit Clearinghouse.
Corrective Action Plan: The District has implemented financial policies and procedures to ensure a timely independent audit process and subsequent timely filing of the audit with the Federal Audit Clearinghouse.
FINDING 2023-010 Finding Subject: ESSER (Education Stabilization Fund) – Allowable Activities, Allowable Costs/Cost Principles Federal Programs: Education Stabilization Fund Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the S...
FINDING 2023-010 Finding Subject: ESSER (Education Stabilization Fund) – Allowable Activities, Allowable Costs/Cost Principles Federal Programs: Education Stabilization Fund Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Activities Allowed and Allowable Costs/Cost Principles compliance requirement. The School Corporation did not have internal controls in place over payroll disbursements. A detailed report of payroll disbursements paid without evidence of review and approval by a knowledgeable person. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: Develop process and procedures for verifying payroll disbursements from grant funds. On a monthly basis, Payroll coordinator will print payroll disbursements from federal grant funds to be reviewed, verified and signed off by Superintendent/CFO. Anticipated Completion Date: To begin immediately, March 2024
FINDING 2023-008 Finding Subject: Special Education Cluster - Procurement and Suspension and Debarment Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requirements relat...
FINDING 2023-008 Finding Subject: Special Education Cluster - Procurement and Suspension and Debarment Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and 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. The School Corporation had not designed or implemented a procurement policy for the purchases in the audit period. In addition, the school corporation did not award a contract for a purchase of $75,387. 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. The School Corporation had not designed or implemented internal controls, policies, or procedures to ensure that vendors were not suspended or debarred prior to entering into a covered transaction. One covered transaction that equaled or exceeded $25,000 was identified and selected for testing. Transactions to the vendor totaled $75,387; the School Corporation did not verify the vendor’s suspension and debarment status prior to payment. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us INDIANA STATE BOARD OF ACCOUNTS 50 Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: Create internal controls (using either SAMS website, certification from vendor, or clause/condition in contract) to ensure that vendors have been vetted and have not been suspended or debarred. Also develop processes to ensure that contracts for purchases over $50,000 are approved by the School Board. Anticipated Completion Date: To begin immediately, March 2024
FINDING 2023-006 Finding Subject: Special Education Cluster - Activities Allowed, Allowable Costs/Cost Principles, Period of Performance Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure ...
FINDING 2023-006 Finding Subject: Special Education Cluster - Activities Allowed, Allowable Costs/Cost Principles, Period of Performance Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Activities Allowed, Allowable Costs/Cost Principles, and Period of Performance compliance requirements. The School Corporation did not have internal controls in place over payroll disbursements. A detailed report of payroll disbursements was paid without evidence of review and approval by a knowledgeable person. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: Develop process and procedures for verifying disbursements from grant funds. On a monthly basis, Corporation Treasure will print expenditure report from federal grant funds to be reviewed, verified and signed off by Superintendent/CFO. Anticipated Completion Date: To begin immediately, March 2024
FINDING 2023-004 Finding Subject: Child Nutrition Cluster - Procurement and Suspension and Debarment Summary of Finding: The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effectiv...
FINDING 2023-004 Finding Subject: Child Nutrition Cluster - Procurement and Suspension and Debarment Summary of Finding: The School Corporation 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 for Procurement and Suspension and Debarment. For covered transactions, the School Corporation is required to verify that the person with whom they wish to do business with is not excluded or disqualified. In Fiscal Year 2022, there was one vendor where the School Corporation had one covered transaction in the amount of $55,285, and in Fiscal Year 2023, there were two vendors where the School Corporation had four covered transactions in the amount of $130,257. During testing and inquiry of the School Corporation, it was determined that for all three vendors who had a total of five covered transactions in the amount of $185,542 during the audit period, the School Corporation did not verify if they were excluded or disqualified prior to entering into a covered transaction. In Fiscal Year 2022, the School Corporation purchased a box truck in the amount of $55,285; however, the School Corporation did not award a contract to the vendor per Indiana Code and the School Corporation was unable to provide supporting documentation to support that three quotes were obtained prior to purchasing the box truck. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: Create internal controls (using either SAMS website, certification from vendor, or clause/condition in contract) to ensure that vendors have been vetted and have not been suspended or debarred. Also develop processes to ensure that contracts for purchases over $50,000 are approved by the School Board. Anticipated Completion Date: To begin immediately, March 2024
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