Corrective Action Plans

Finding 420261 (2022-001)

Significant Deficiency 2022

WA

Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking § 200.303

10/02/2023The following Corrective Action Plan addresses the findings related to Community Youth Services 2022 Audit.Corrective Action Plan:Finding: 2022-001 (reference 2021-003)CFDA: 21.023 Department of the Treasury, Agency Rental AssistanceAgency: Community Youth ServicesName of contact person an...

10/02/2023The following Corrective Action Plan addresses the findings related to Community Youth Services 2022 Audit.Corrective Action Plan:Finding: 2022-001 (reference 2021-003)CFDA: 21.023 Department of the Treasury, Agency Rental AssistanceAgency: Community Youth ServicesName of contact person and title: Derek Harris, CEOAnticipated completion date: completed on 09/30/2022Agency?s response: ConcurThe organization agrees with this finding and has implemented the following: reference response 2021003Finding: 2022-002 related to financial statementsCFDA: N/AAgency: Community Youth ServicesName of contact person and title: Derek Harris, CEOAnticipated completion date: Implemented 9/1/2022Agency?s response: ConcurThe organization agrees with this finding and implemented the following:Bank transactions are reviewed prior to receiving the statement for potential fraud. The Accounting Associate responsible for accounts payable reviews check exceptions and uploads the check data from our financial system to the bank system at least weekly, if not daily. This prevents checks and withdrawals being presented and posted that differ from our financial records.Month end bank reconciliations will be completed within 30 days of receipt of the statement, according to Community Youth Services policy and procedure. An individual in a supervisory position will review the month-end reconciliations and bank statements upon completion. The supervisor reviewing the month-end reconciliation will document the review with their initials (digitally or by hand and scanned). All reconciliations will be stored on the organizations Sharepoint server.

View Audit 312253

Finding 419462 (2022-003)

Significant Deficiency 2022

Hagerstown Community College

MD

Reporting Subrecipient Monitoring Significant Deficiency § 200.328

2022-003 Education Stabilization Fund ? Assistance Listing No. 84.425FCondition: The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Recommendation: We recommend the College review current procedures to ensure documentati...

2022-003 Education Stabilization Fund ? Assistance Listing No. 84.425FCondition: The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Recommendation: We recommend the College review current procedures to ensure documentation is maintained to support the amounts submitted on quarterly and annual reports.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action taken in response to finding: Management has reviewed their current procedures and has included additional controls to ensure the supporting documents are maintain with a copy of the submitted quarterly and annual reports.Name(s) of the contact person(s) responsible for corrective action: Dr. Heike Soeffker-Culicerto, Vice President of Administration and Finance, 240-500-2235Planned completion date for corrective action plan: March 31, 2023

View Audit 312232

Finding 418493 (2022-002)

Material Weakness 2022

City of Seattle

WA

Subrecipient Monitoring

Finding ref number: 2022-002Finding caption:The City?s internal controls were inadequate for ensuring compliance with federal reporting requirements.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684.0574Theresa George, HSD Acco...

Finding ref number: 2022-002Finding caption:The City?s internal controls were inadequate for ensuring compliance with federal reporting requirements.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684.0574Theresa George, HSD Accounting Manager, 206.798.3360Corrective action the auditee plans to take in response to the finding:HSD hired a consultant service (TDA) in response to prior SAO feedback, which will strengthen our internal controls over federal reporting requirements to ensure our Cash on Hand Quarterly Reports and FFATA reports are accurate and submitted timely moving forward. HSD will continue to clarify roles and responsibilities for reporting and central reporting and archiving of confirmation reports to increase internal control of this function.TDA consulting will add capacity to HSD?s Federal Grants Management Unit to clear its 2022 FFATA reporting backlog while HSD addresses current staffing shortages. In addition to clearing the reporting backlog, HSD?s contractor is assisting with the development of policies and procedures to better facilitate the conducting of data quality reviews to address accuracy issues identified with Cash on Hand Quarterly Reports (PR29 and PR29-CV) to better report information such as cash on hand, program income and revolving fund funding levels.As part of its scope of work, TDA has developed a workplan focusing on the establishment of a staffing plan recommendation, the associated role assignments for the future staffing structure and documenting reporting procedures to assure reporting compliance moving forward. Anticipated date to complete the corrective action:12/31/2023

View Audit 312191

Finding 418479 (2022-001)

None 2022

City of Seattle

WA

Questioned Costs Allowable Costs / Cost Principles Reporting

Finding ref number: 2022-001Finding caption:The City charged payroll-related expenditures that lacked support to the Community Development Block Grants/Entitlement Grants program.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684...

Finding ref number: 2022-001Finding caption:The City charged payroll-related expenditures that lacked support to the Community Development Block Grants/Entitlement Grants program.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684.0574Theresa George, HSD Accounting Manager, 206.798.3360Corrective action the auditee plans to take in response to the finding:HSD Response:HSD as the CDBG administrator, in collaboration with its contracted consultant support TDA consulting, will complete the following steps to support the resolution of this finding associated with the pre-approval of timesheets within the Office of Housing, and the Department of Parks and Recreation.HSD will conduct a thorough review of all existing MOAs with our recipients to ensure that the language pertaining to pre-approved timesheets is clear, consistent, and aligned with federal and state regulations. HSD will also assure staff responsible for administering CBDG funds and other federal funds are oriented to federal requirements regarding the pre-approval of timesheets and will emphasize the importance of adhering to the requirements outlined in the MOAs. HSD will encourage its city partners receiving these funds to work with the City-Wide Accounting team to adopt standardized procedures for the approval, documentation, and tracking of timesheets.Office of Housing Response:The Office of Housing will change its timesheet review procedures in order to ensure manager sign-off happens no sooner than the close of business on the final day of the pay period. Current procedure is for the Office Housing Accountant to send an email reminding all managers to sign-off on timesheets; effective 10/1/23 this message will add the specific reminder that all employees funded by federal grant revenues should not have their timesheets approved until after all hours have been worked.Parks and Recreation Response:Moving forward, Seattle Parks and Recreation (SPR) will follow the City-Wide Accounting guidance provided on June 6th, 2023 which requires employees to not submit timesheets earlier than the federally grant-funded work is performed.SPR department leadership have immediately notified the CDBG management team to re-emphasize the requirement. In addition, the SPR payroll team will also provide a reminder of the requirement for all SPR staff for each payroll cycle. The SPR executive team will continue to monitor compliance relating to this recommendation.Anticipated date to complete the corrective action:Human Services Department: 12/31/2023Seattle Parks and Recreation: 9/15/2023Office of Housing:10/01/2023

View Audit 312191 Questioned Costs: $1

Finding 418478 (2022-003)

Significant Deficiency 2022

City of Seattle

WA

Subrecipient Monitoring Procurement, Suspension & Debarment

Finding ref number: 2022-003Finding caption:The City?s internal controls were inadequate for ensuring compliance with federal suspension and debarment requirements.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684.0574Theresa Ge...

Finding ref number: 2022-003Finding caption:The City?s internal controls were inadequate for ensuring compliance with federal suspension and debarment requirements.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684.0574Theresa George, HSD Accounting Manager, 206.798.3360Corrective action the auditee plans to take in response to the finding:HSD Response:HSD as the CDBG administrator, in collaboration with its contracted consultant support TDA consulting, will complete the following steps to support the resolution of this finding noting internal controls were inadequate for ensuring staff verified the suspension and debarment status of sub-recipients within the Office of Housing.HSD will conduct a thorough review of all existing MOAs with our recipients to ensure that the language pertaining to the verification and the documenting of the suspension and debarment status of sub-recipients is clear, consistent, and aligned with federal and state regulations. HSD will also assure staff responsible for administering CBDG funds and other federal funds are oriented to the importance of adhering to the debarment verification requirements outlined in the MOAs. HSD will encourage its city partners receiving these funds to work with other city partners to adopt standardized procedures for the verification and documentation of sub-recipient suspension and debarment status.Office of Housing Response:The Office of Housing will implement and communicate the following procedures: For all contracts expected to receive $25,000 or more in federal funds, the program staff person initiating the contract will first search the SAM website to verify that: the agency is registered, the agency?s registration status is active, and the agency does not have any active exclusions such as debarment or suspension. This status will be double-checked by the future Senior Contracts Specialist position before any contract is finalized.Anticipated date to complete the corrective action:The Office of Housing will hold a meeting of all relevant managers and supervisors on 9/26/23, during which all will be notified (or reminded) of the procedures described above. When the new Senior Contracts Specialist position is hired (estimated by 12/31/23), one of their first tasks will be to write and distribute a comprehensive contracts policy for the Office of Housing, which will include the procedures described above.

View Audit 312191

Finding 418221 (2022-008)

Significant Deficiency 2022

Heritage University

WA

Subrecipient Monitoring Reporting

Recommendation: The auditors recommend the University create an internal control to ensure all first-tier subawards of $30,000 or more are properly reported to the Federal Funding Accountability and Transparency Act Subaward Reporting System.Planned Corrective Action: Heritage University will ensure...

Recommendation: The auditors recommend the University create an internal control to ensure all first-tier subawards of $30,000 or more are properly reported to the Federal Funding Accountability and Transparency Act Subaward Reporting System.Planned Corrective Action: Heritage University will ensure that all first-tier subawards of $30,000 or more are appropriately reported to the Federal Funding Accountability and Transparency Act Subaward Reporting System while establishing internal control.Name of Responsible Party:1. Dr. Andrew Sund, President2. Thomas Richter, VP of Administration/CFO3. Melissa Hill, Interim Provost4. Corey Hodge, Interim VP of Academic AffairsAnticipated Completion Date: June 30, 2023

View Audit 312179

Finding 418216 (2022-003)

Significant Deficiency 2022

Heritage University

WA

Subrecipient Monitoring § 200.332

Recommendation: The auditors recommend the University implement internal controls to assess the risk of the subrecipient and properly monitor any subrecipients of the University, such as reviewing single audits, financial and performance reports, or other necessary documentation of the subrecipient...

Recommendation: The auditors recommend the University implement internal controls to assess the risk of the subrecipient and properly monitor any subrecipients of the University, such as reviewing single audits, financial and performance reports, or other necessary documentation of the subrecipient entity to help ensure the subrecipient is in compliance.Planned Corrective Action: In agreement with the auditor?s recommendation of internal controls to properly monitor any subrecipients of the University, such as reviewing financial and performance reports of the subreceipient entity including any single audit reports. Heritage University has finalized the new ?Grant Management Policy & Procedures? manual. The grant management manual section on subrecipient is explicit about the University?s policies and procedures to ensure documentation is maintained.Name of Responsible Party:1. Yolanda Maltos, Grant Accountant2. Alysia Stevens, Controller3. Tom Richter, VP of Administration/CFO4. Andrew Sund, PresidentAnticipated Completion Date: September 30, 2023

View Audit 312179

Finding 418207 (2022-010)

Significant Deficiency 2022

Heritage University

WA

Student Financial Aid Reporting Subrecipient Monitoring

Recommendation: The auditors recommend the University follow and enhance existing policies to ensure all student changes in status are identified timely and submitted accurately within the required time frame. They also recommend the University establish a formal internal monitoring control whereby...

Recommendation: The auditors recommend the University follow and enhance existing policies to ensure all student changes in status are identified timely and submitted accurately within the required time frame. They also recommend the University establish a formal internal monitoring control whereby a designated individual with NSLDS access, on a sample basis, spot checks the status updates on NSLDS so to internally audit the National Student Clearinghouse submissions.Planned Corrective Action: Heritage University will adhere to and improve the current standards to guarantee that all student status changes are promptly identified and submitted accurately within the appropriate time period. In order to internally audit the National Student Clearinghouse submissions, the University will set up a formal internal monitoring system whereby a designated person with access to NSLDS periodically monitors the status updates on NSLDS.Name of Responsible Party:1. Dianne Fernandez, Director of Financial Aid2. Mary Neal, Registrar3. Thomas Richter, VP of Administration/CFOAnticipated Completion Date: June 30, 2023

View Audit 312179

Finding 411732 (2022-009)

Material Weakness 2022

Ohio Institute of Allied Health, Inc.

IL

Subrecipient Monitoring

Finding 2022-09 Heightened Cash Monitoring - see corrective action plan submitted with the audit report.

View Audit 312103

Finding 411335 (2022-002)

None 2022

Humboldt County School District

NV

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.308 § 200.309

AUDIT FINDING REFERENCE: 2022-002FINDING SUMMARY:The District?s expenditures charged to grant award number 21-340-07000 occurred prior to the date of the sub-grantaward provided by the State of Nevada Department of Education.RESPONSIBLE PERSON:Dr. David Jensen, SuperintendentPLANNED CORRECTIVE ACTIO...

AUDIT FINDING REFERENCE: 2022-002FINDING SUMMARY:The District?s expenditures charged to grant award number 21-340-07000 occurred prior to the date of the sub-grantaward provided by the State of Nevada Department of Education.RESPONSIBLE PERSON:Dr. David Jensen, SuperintendentPLANNED CORRECTIVE ACTION:This finding was in relation to a pass-through grant of Supplemental Corona Virus Relief Funding provided to theDistrict in lieu of an error found in the PCFP funding formula for the bi-ennium. While the District?s expenditures forthe program are consistent with the March 1, 2020 through December 31, 2021 Period of Performance for thisfederal funding, the Period of Performance on the sub-grant Award was listed as December 10 through December 31,2021. Prior to acceptance, the District informed the pass-through entity that the funds would be used to reimbursecosts incurred during July through October, 2021, and the pass-through entity personnel verbally assured Districtmanagement that this would be acceptable. However, the pass-through entity did not amend the sub-grant awardperiod of performance, resulting in non-compliance with the sub-grant award.Humboldt County School District agrees with the audit finding that this was an isolated instance resulting from aunique situation that arose and was out of the District?s control, and is not the result of a systematic problem.However, the District will follow the recommendation and make every effort to obtain written documentation of anypromised revisions to sub-grant awards prior to expending funds from the pass-through entity in the future.ANTICIPATED COMPLETION DATE:January 31, 2023

View Audit 312061

Finding 411168 (2022-001)

Significant Deficiency 2022

Northwest Michigan Health Services, Inc.

MI

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency

Federal Audit ClearinghouseNorthwest Michigan Health Services respectfully submits the following corrective action plan for the year ended March 31, 2022.Name and address of independent public accounting firm:Quast, Janke & Company1010 N Johnson StBay City, MI 48708Audit Period: March 31, 2022Conta...

Federal Audit ClearinghouseNorthwest Michigan Health Services respectfully submits the following corrective action plan for the year ended March 31, 2022.Name and address of independent public accounting firm:Quast, Janke & Company1010 N Johnson StBay City, MI 48708Audit Period: March 31, 2022Contact person responsible for Corrective ActionHeidi Britton, Chief Executive OfficerThe findings from the March 31, 2022 schedule of findings and questions costs are detailed in the schedule above. The findings are numbered consistently with the numbers assigned in the schedule.FINANCIAL STATEMENT AUDIT FINDINGSNone.MAJOR FEDERAL AWARDS FINDINGS2022-001 Federal Program - Federal Program CFDA # 93.224 and 93.527 Health Center ClusterRecommendation ? Auditors recommend additional training for staff on sliding fee policies and procedures and management to monitor and verify that processes are being performed as prescribed.Action Taken ? We concur with the audit finding. While the Center has a policy that meets the compliance requirements, management is responsible for the implementation and monitoring of those processes and procedures. Additional staff training on slide fee discounts is in place and monthly review and testing of compliance with Center sliding fee discount policy will be done.

View Audit 312031

Finding 411153 (2022-001)

Material Weakness 2022

Nemo Workforce Development Board

MO

Subrecipient Monitoring § 200.331

2022-001 Subrecipient MonitoringRecommendation: We recommend the Organization review policies and procedures for subrecipient monitoring. Further, the Organization should ensure that all documentation and support for the monitoring of activities for subawards in regards to authorized purpose, terms ...

2022-001 Subrecipient MonitoringRecommendation: We recommend the Organization review policies and procedures for subrecipient monitoring. Further, the Organization should ensure that all documentation and support for the monitoring of activities for subawards in regards to authorized purpose, terms and conditions, and performance goals are properly maintained.Corrective Action Taken: As of July 1, 2022, North Central Missouri College was selected as the Grant Recipient/Fiscal Agent for the Northeast Workforce Development Board?s grant funds. Procedures to manage, track, and account for all subrecipient grant awards are in place and will be followed.Anticipated Completion Date: July 1, 2022.

View Audit 312030

Finding 410371 (2022-003)

Significant Deficiency 2022

Alamo Area Resource Center, Inc.

TX

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Finding 2022-003EligibilityManagement Response: Management agrees with auditor recommendations and a plan is in place to increase the effectiveness of reviews to ensure the completeness of client certification requirements.Action Plan: 1) Identify the departments that had eligibility errors. 2) Prov...

Finding 2022-003EligibilityManagement Response: Management agrees with auditor recommendations and a plan is in place to increase the effectiveness of reviews to ensure the completeness of client certification requirements.Action Plan: 1) Identify the departments that had eligibility errors. 2) Provide comprehensive training to ensure a clear understanding of Ryan White eligibility requirements among departments.Enacted: June 2023Responsible Person: Director of Case ManagementFinalized: July 2023Action Plan: 3) The programs use a new platform, e2SanAntonio, that has a built-in feature that flags clients that are out of compliance. Will perform monthly audits of Ryan White eligibility using the new eligibility platform reporting.Enacted: April 2023Responsible Person: Director of Case ManagementFinalized: June 2023

View Audit 311961

Finding 409887 (2022-003)

Significant Deficiency 2022

University of Delaware

DE

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Corrective Action PlanYear Ended June 30, 2022Finding 2022-003: Procurement: Suspended and DebarredCondition Found:In the auditor?s testing over suspension and debarment, they identified nine covered transactions in a sample of 40 procurement transactions for which the University was unable to prov...

Corrective Action PlanYear Ended June 30, 2022Finding 2022-003: Procurement: Suspended and DebarredCondition Found:In the auditor?s testing over suspension and debarment, they identified nine covered transactions in a sample of 40 procurement transactions for which the University was unable to provide supporting documentation that we verified the vendor was not suspended or debarred prior to entering into the procurement transaction with the vendor. It was determined that the related vendors were not suspended or debarred.Recommendation:The auditors recommend the University enhance its internal control over compliance with the federal regulations related to suspension and debarment to ensure covered transactions are not entered into with parties that have been suspended or debarred.University of Delaware Corrective Action Plan:The University agrees with the finding. The University will ensure suspension and debarment language is included within the contracts of all new covered transactions effective July 1, 2023 and thereafter.Additionally, the University will investigate utilizing third-party verification software to screen existing and potential vendors against the System for Award Management (SAM.gov) Exclusions list daily with expected execution by July 1, 2024.Anticipated Completion Date:Suspension and Debarment: Contract Clause ? July 1, 2023Suspension and Debarment: SAM.gov Verification ? July 1, 2024Contact Persons:Jeff Friedland, Associate Vice President for ResearchDavid Fenkel, Associate Vice President & Chief Procurement Officer

View Audit 311956

Finding 409836 (2022-001)

Significant Deficiency 2022

Lawton Community Schools

MI

Cash Management School Nutrition Programs Subrecipient Monitoring

Lawton Community Schools respectfully submits the following corrective action plan for the year ended June 30, 2022.Auditor: Seber Tans, PLC555 W. Crosstown Pkwy, STE 304Kalamazoo, MI 49008Audit Period: Year ended June 30, 2022District Contact Person: Dianne Webster, Business Office ManagerThe findi...

Lawton Community Schools respectfully submits the following corrective action plan for the year ended June 30, 2022.Auditor: Seber Tans, PLC555 W. Crosstown Pkwy, STE 304Kalamazoo, MI 49008Audit Period: Year ended June 30, 2022District Contact Person: Dianne Webster, Business Office ManagerThe findings from the June 30, 2022 schedule of findings and responses are discussed below. The findings are numbered consistently with the number assigned in the schedule.Finding ? Federal Award Findings and Questioned CostsFinding 2022-01 ? Significant DeficiencyRecommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.Action to be Taken: Management concurs with the facts of this finding and we are in the process of developing and implementing a plan to spend down the food service fund balance.

View Audit 311946

Finding 409733 (2022-001)

Significant Deficiency 2022

The Healthcare Connection INC

OH

Subrecipient Monitoring HUD Housing Programs

The Healthcare Connection, Inc CORRECTIVE ACTION PLANFor the Year Ended December 31, 2022Finding 2022-001Federal program and specific federal awardU.S. Department of Health and Human Services (HHS)93.224/93.527 Consolidated Health Centers (Community Health Centers, Migrant Health Centers, Health Car...

The Healthcare Connection, Inc CORRECTIVE ACTION PLANFor the Year Ended December 31, 2022Finding 2022-001Federal program and specific federal awardU.S. Department of Health and Human Services (HHS)93.224/93.527 Consolidated Health Centers (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, Public Housing Primary Care, and School Based Health Centers); (HHS Community Health Center Program)Specific requirementHealth centers must prepare and apply a sliding fee discount schedule (SFDS) so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient?s ability to pay.ConditionDuring a sample of 25 patient visit encounters, we noted that 1 patient visit from March 2022 did not have the applicable sliding fee application on file and the patient charge was adjusted down to zero.CauseThis was due to an error made by manual entry to adjust the sliding fee without sufficient support on file of the patient?s sliding fee application.Effect or potential effectA patient received a sliding fee to write off the entire charge of $210 that was not supported by a sliding fee application. Subsequent to the discovery of the error during the audit, in April 2023, the Organization was able to obtain an application from the patient to support a sliding fee to a charge of $70.Questioned costsNoneRepeat findingNoRecommendationWe recommend that management continue to work and educate front desk and intake staff on the importance of the required patient application documentation so that the required support is obtained before applying a sliding fee discount to a patient account. In addition, we suggest that management establish a policy to perform regular monitoring of a sample of patient file sliding fee applications, to ensure the sliding fee is applied correctly.Corrective ActionWe agreed with the above comment and will implement a system of monitoring sliding fee applications and continue to educate the front desk and intake staff to ensure all documentation is obtained.

View Audit 311938

Finding 406049 (2022-001)

Significant Deficiency 2022

Eastwest Food Rescue

WA

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency § 200.303

EastWest Food Rescue has since implemented a formal expense approval process that requires electronic signatures from authorized individuals before payments will be processed.

View Audit 311592

Finding 404506 (2022-005)

Material Weakness 2022

The Salvation Army Northwest Division

WA

Subrecipient Monitoring Eligibility Material Weakness

The Division will contact each unit distributing TEFAP assistance and communicate the requirement to retain documentation regarding the determination of client eligibility. Anticipated Completion Date: June 2024. Responsible Contact Person: Julie Luft, Northwest Division Social Services Director

View Audit 311047

Finding 403960 (2022-005)

Significant Deficiency 2022

City of Danbury

CT

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

Finding 2022-005 – Significant Deficiency, Procurement and Suspension, and Debarment - Internal Control over Verification Against the System for Award Management (“SAM”) Condition: During our audit, we noted that the City did not have documentation to support that it verified vendors selected for te...

Finding 2022-005 – Significant Deficiency, Procurement and Suspension, and Debarment - Internal Control over Verification Against the System for Award Management (“SAM”) Condition: During our audit, we noted that the City did not have documentation to support that it verified vendors selected for testing against the SAM to ensure that they were not suspended or debarred from federally funded purchases. Cause: While the City has a formal policy requiring the purchasing department to perform verification of suspension or debarment over vendors that the City enters into contracts with for federally funded projects, it does not maintain formal documentation that this procedure occurred. Response: We agree with the finding. We are adding this step to our checklist and have assigned the task to our Grants Compliance Coordinator.

View Audit 310810

Finding 403959 (2022-004)

Significant Deficiency 2022

City of Danbury

CT

Subrecipient Monitoring Reporting Significant Deficiency

Finding 2022-004: Significant Deficiency and Noncompliance Finding, Reporting- Special Reporting Assistance Listing Program Title and Number: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: Department of Treasury Pass-through Entity: N/A Award year: 2022 Criteria or specific requir...

Finding 2022-004: Significant Deficiency and Noncompliance Finding, Reporting- Special Reporting Assistance Listing Program Title and Number: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: Department of Treasury Pass-through Entity: N/A Award year: 2022 Criteria or specific requirement: Cities were required to submit a one-time interim report with expenditures by Expenditure Category covering the period from March 3 to July 31, 2021, by August 31, 2021. The initial quarterly Project and Expenditure Report covered three calendar quarters from March 3, 2021 to December 31, 2021, and was required to be submitted to Treasury by January 31, 2022. The subsequent quarterly reports will cover one calendar quarter and must be submitted to Treasury by the last day of the month following the end of the period covered. Condition: The interim report and 2 Project and Expenditure Reports were not submitted as required. Cause: Grant management and reporting is not fully centralized within the City and there was turnover in the grant administrator position. The City did not have sufficient internal controls in place to ensure the reports were filed. Effect: The progress reports should be submitted by the deadline. This results in non-compliance with the Reporting requirements of the program. This can result in the Federal government cancelling funding of the program or denying eligible expenditures. Prevalence: There was 1 interim report and 3 project and expenditure reports required to be submitted during the audit period. Only one project and expenditure reports was submitted. Questioned Cost: None Repeating Finding: No. Recommendation We recommend that the City implement controls to ensure all compliance requirements are complied with as well as contact the grantor about whether or not the delinquent reports should still be filed. Views of Responsible Officials: Management agrees with the finding.

View Audit 310810

Finding 403907 (2022-007)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.302

Corrective Action Plan: After monthly reconciliations, financial statements will be delivered to AJAC Directors monthly. AJAC Accounting Department will hold monthly close calls to collaborate with AJAC Directors to ensure accuracy of financials. Anticipated Completion Date: Completed

View Audit 310790

Finding 403902 (2022-002)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles

Corrective Action Plan: The deficiencies related to internal control policies and procedures were initially identified in a Federal Desk Monitoring Review conducted in November 2022. Internal control policies and procedures were updated in response to these findings and approved by DOL on October 26...

Corrective Action Plan: The deficiencies related to internal control policies and procedures were initially identified in a Federal Desk Monitoring Review conducted in November 2022. Internal control policies and procedures were updated in response to these findings and approved by DOL on October 26, 2023. All financial reporting policies and procedures will be reviewed and updated on an annual basis by AJAC Directors and Supervisors. Anticipated Completion Date: Completed

View Audit 310790

Finding 403891 (2022-003)

Material Weakness 2022

Lauderdale County, Mississippi

MS

Subrecipient Monitoring § 200.332

This payment was a one-time payment for a single project completed by the City of Meridian. Moving forward, Lauderdale County will document the completion of the project.

View Audit 310764

Finding 403889 (2022-003)

Significant Deficiency 2022

West Alabama Aids Outreach, Inc.

AL

Questioned Costs Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers and a purchasing manager to help ensure policies and procedures are being followed. In response to this finding, the CFO and Director of Grants Management have institute...

Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers and a purchasing manager to help ensure policies and procedures are being followed. In response to this finding, the CFO and Director of Grants Management have instituted multiple internal processes to confirm administrative fees do not exceed 10% of grant award. The grant biller will prepare a monthly reimbursement schedule in Excel which shows the budgeted amount for each category. The Director of Grants Management reviews and approves this schedule to ensure it meets the grant requirements. Each individual monthly reimbursement form is approved and signed by the Director of Grants Management to confirm accuracy. Then the reimbursement form submitted is entered in a master spreadsheet "Projects by Line Item" which shows original budget, monthly amounts billed for each budget line item, and remaining balance for each item. This is reviewed each month to ensure no amounts, including the administrative costs exceed approved amounts. Anticipated Completion Date: 9/30/2023 Responsible Contact Person: Chris White, CFO

View Audit 310763 Questioned Costs: $1

Finding 403888 (2022-002)

Significant Deficiency 2022

West Alabama Aids Outreach, Inc.

AL

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.303

The CFO has instituted multiple approvals for each reimbursement or purchase request. Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers, and a purchasing manager to help ensure policies and procedures are being followe...

The CFO has instituted multiple approvals for each reimbursement or purchase request. Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers, and a purchasing manager to help ensure policies and procedures are being followed. For reimbursements, employees will complete an Employee Reimbursement Form which is signed by the employee and employee's direct supervisor. For purchase requests, employees will complete a Purchase Order form which is signed by the employee and the employee's supervisor. The signed form is sent to the finance department where it is entered in Bill.com for payment by accounts payable personnel. The Director of Finance approves the reimbursement or purchase on Bill.com, then the CFO approves and releases for payment. The approved Reimbursement Form or Purchase Order is sent to the Director of Grants Management, and if eligible, attached to the monthly billing to grantor for reimbursement. Anticipated Completion Date: 9/30/2023 Responsible Contact Person: Chris White, CFO

View Audit 310763

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