Corrective Action Plans

Finding 42200 (2022-001)

None 2022

CA

Subrecipient Monitoring Reporting

Finding Reference Number: SA2022-001 Compliance with Grant Deadlines Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of Treasury Federal Award ID Number: COVID-19 ? SLFRP0002 COVID-19 ? 68-02...

Finding Reference Number: SA2022-001 Compliance with Grant Deadlines Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of Treasury Federal Award ID Number: COVID-19 ? SLFRP0002 COVID-19 ? 68-0283471 COVID-19 ? 68-0281986 Name of Pass-Through Entity: State of California Department of Community Services California State Water Resources Control Board Name(s) of the contact person: Gary Welling, Director of Water & Sewer Utilities Water and Sewer Manuel Pineda, Chief Electric Utility Officer Fiscal Year of Initial Finding: 2021-2022 Corrective Action Plan: The City has taken action and corrected the issues related with this finding. The City has also taken steps to improve business processes to prevent this issue from occurring again. Staff are required to develop a checklist to manage the reporting and compliance requirements for the grant that they manage to ensure that the City meets the grant?s reporting requirements. Anticipated Completion Date: March 23, 2023

View Audit 38929

Finding 42197 (2022-001)

Significant Deficiency 2022

Preferred Family Healthcare, Inc.

MO

Questioned Costs Matching / Level of Effort / Earmarking Subrecipient Monitoring

Views of Responsible Officials and Planned Corrective Actions ? PFH Management has reviewed the procedures surrounding funding match and made the necessary changes to ensure compliance. Additional training has also occurred and is ongoing with accounting as well as program staff and new monitoring ...

Views of Responsible Officials and Planned Corrective Actions ? PFH Management has reviewed the procedures surrounding funding match and made the necessary changes to ensure compliance. Additional training has also occurred and is ongoing with accounting as well as program staff and new monitoring steps designed and implemented.

View Audit 38591 Questioned Costs: $1

Finding 42151 (2022-001)

Material Weakness 2022

Nine Mile Falls School District No. 325/179

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Nine Mile Falls School District No. 325/179 September 1, 2021 through August 31, 2022 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Nine Mile Falls School District No. 325/179 September 1, 2021 through August 31, 2022 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with wage rate requirements. Name, address, and telephone of District contact person: Claire Olson, Executive Director of Business Nine Mile Falls School District No. 325/179 10110 W. Charles Road Nine Mile Falls, WA 99026 Corrective action the auditee plans to take in response to the finding: The district relied upon experienced contractors during these federally-funded projects to ensure proper contract language was used and to submit weekly certified payroll reports. The two (2) contracts without specific Davis Bacon language both mentioned local prevailing wages, which is higher than federal prevailing wages, so both the contractors and the district thought this was sufficient and would be considered compliant. Future federal projects exceeding $2,000 in federal dollars will include federal language as required by Title 29 CFR, ?5.5. The district has created a project tracking sheet which contains the following information: project location, project description, funding source, estimated contract amount, date of award, awarded contractor, SAM verification date, intent and affidavit numbers and dates, subcontractor information, and certified payroll verification for weeks work completed. Anticipated date to complete the corrective action: These changes were implemented immediately.

View Audit 47836

Finding 42148 (2022-001)

Material Weakness 2022

Taylor County, Texas

TX

Subrecipient Monitoring § 200.303 § 200.332

Finding 2022-001 Federal Agency Name: U.S. Department of the Treasury Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Finding Summary: The County provided a subaward of SLFRF funds to a subreci...

Finding 2022-001 Federal Agency Name: U.S. Department of the Treasury Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Finding Summary: The County provided a subaward of SLFRF funds to a subrecipient. The County did not include the required data elements in the subaward document, did not perform an assessment of the risk of subrecipient noncompliance with federal guidelines and grant terms, and did not review to determine that the subrecipient was not suspended or debarred. The County did not have a subrecipient monitoring policy in place that required compliance with these guidelines. Responsible Individuals: Elijah Anderson, County Auditor Corrective Action Plan: Taylor County will adopt a subrecipient grant policy before any other subrecipient awards are approved. The policy will include all required elements noted at 2 CFR 200.331-333. Policy provisions will provide for the review of contracts so that all required clauses are included, an assessment of risk for potential subrecipients, and monitoring guidelines to ensure compliance with federal requirements. The review of suspension or debarment performed by the County will be documented in the future so that verification of this step can be reviewed. Anticipated Completion Date: Ongoing

View Audit 45341

Finding 42121 (2022-001)

Material Weakness 2022

Seaway Valley Council for Alcohol/substance Abuse Prevention, Inc.

NY

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.302 § 200.303

Seaway Valley Prevention Council has implemented a system that identifies the source of each funding stream the agency receives or is in the process of completing a request for awards for. This system allows for early determination of the need for a federal single audit. If a funding stream source ...

Seaway Valley Prevention Council has implemented a system that identifies the source of each funding stream the agency receives or is in the process of completing a request for awards for. This system allows for early determination of the need for a federal single audit. If a funding stream source is identified as originating from a federal award, then all related information is recorded as well as retention of all federal funding requirements related to the federal assistance listing number.

View Audit 39328

Finding 42119 (2022-001)

None 2022

Notre Dame De Namur University

CA

Subrecipient Monitoring Cash Management Eligibility

FINDINGS AND QUESTIONED COSTS - FEDERAL AWARDS PROGRAM 2022-001 Higher Education Emergency Relief Fund (HEERF) Institutional Portion Assistance Listing Number: 84.425F Criteria According to the Department of Education Higher Education Emergency Relief Fund III Frequently Asked Questions (FAQs) quest...

FINDINGS AND QUESTIONED COSTS - FEDERAL AWARDS PROGRAM 2022-001 Higher Education Emergency Relief Fund (HEERF) Institutional Portion Assistance Listing Number: 84.425F Criteria According to the Department of Education Higher Education Emergency Relief Fund III Frequently Asked Questions (FAQs) question 26, institutions may discharge student debt or unpaid balances by discharging the complete balance of the debt as lost revenue and reimbursing themselves through their HEERF institutional grants or by providing additional emergency financial grants to students (with their permission). This is available for the institutions for students who were enrolled in an institution at any point on or after March 13, 2020. Condition There was a lack of review procedures that led to not adhering to the HEERF requirements. Context A portion of HEERF institutional grant funds was improperly used to discharge student debt and/or unpaid balances, including debt and/or unpaid balances of students that were enrolled prior to March 13, 2020. Cause Insufficient monitoring of grant rules and regulations. Effect Lost revenue was calculated using an alternative method that fit within the regulations. Questioned Cost There were no questioned costs related to this finding. Recommendation We recommend that the University closely monitor all grant requirements and ensure that there are proper review processes in place to catch any potential noncompliance. Planned Corrective Action The Fiscal Staff will review and recommend to reduce / inactivate the number of accounting classifications that are no longer used, and therefore the chart of accounts will be more streamlined. The new chart of accounts will then be deployed without the same unnecessary legacy monthly closing protocols. Existing fiscal staff will now have more bandwidth to help with monthly analysis and accounting close protocols. Implementation Date Effective date: 7/1/23 for fiscal year 2024. Responsible Personnel Arlene Cash Interim Vice President for Enrollment Management awcash@ndnu.edu

View Audit 39518

Finding 42115 (2022-001)

Material Weakness 2022

Jefferson Center for Mental Health, Inc.

CO

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

As stated in the audit findings, there were errors made in reporting lost revenue, which included pharmacy and grant revenue. Jefferson Center agrees there were errors made and are providing a solution for the corrective action plan. It?s every important for Jefferson Center for Mental Health to r...

As stated in the audit findings, there were errors made in reporting lost revenue, which included pharmacy and grant revenue. Jefferson Center agrees there were errors made and are providing a solution for the corrective action plan. It?s every important for Jefferson Center for Mental Health to report accurately and timely information. All future reporting and correspondence on provider relief funding will be reviewed by multiple fiscal staff, including the Controller, Director of Finance and the Chief Financial Officer. Having multiple qualified staff to review and agree that the correct procedures have been followed and that the information being reported is accurate, will ultimately meet our goal of reporting 100% accurate information. In the future, the Controller will prepare the reporting information, the Director of Finance will assist the Controller in reviewing the reporting guidelines and timelines as well as assist with populating the reports with the correct data. The Chief Financial Officer will review the reports and data sources to ensure that we follow the correct reporting guidelines. Jefferson Center will also make sure that we have the latest Post-payment Notice of Reporting Requirements from the HRSA website to ensure we?re aware of the latest reporting requirements. Projected Completion Date: February 15, 2023 CLIENT RESPONSIBLE PARTY: Name of Contact Person: David A. Goff, MBA Vice President of Administration and Chief Financial Officer. 4851 Independence Street, Wheat Ridge, CO 80033. 303-432-5164, Davidg@jcmh.org

View Audit 39579

Finding 42109 (2022-001)

Significant Deficiency 2022

Lessie Bates Davis Neighborhood House Inc.

IL

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

Management Response: The Neighborhood House is undergoing an internal review of all payroll and payroll allocations. Adjustments and corrections to program allocations will be made accordingly. The payroll report will be reviewed annually for revisions.

View Audit 39402

Finding 42087 (2022-001)

None 2022

Snoqualmie Valley School District No. 410

WA

Procurement, Suspension & Debarment Subrecipient Monitoring

Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with procurement requirements for the Special Education program. Name, address, and telephone of District contact person: Ryan Stokes, Assistant Superintendent P.O. Box 400 Sno...

Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with procurement requirements for the Special Education program. Name, address, and telephone of District contact person: Ryan Stokes, Assistant Superintendent P.O. Box 400 Snoqualmie, WA 98065 (425) 831-8012 Corrective action the auditee plans to take in response to the finding: The District will continue to provide annual and ongoing training to staff to ensure that established internal controls are being followed with fidelity. Anticipated date to complete the corrective action: August 31, 2023

View Audit 49978

Finding 42080 (2022-001)

Material Weakness 2022

Family Life Center, Inc.

AL

Internal Control / Segregation of Duties Reporting Subrecipient Monitoring

Finding 2022-001 ? Segregation of Duties: Description of Finding: The auditor found that duties were not segregated in a number of areas where small adjustments to the policies of the Entity could help to further facilitate this important control. Statement of Concurrence or Nonconcurrence: Mana...

Finding 2022-001 ? Segregation of Duties: Description of Finding: The auditor found that duties were not segregated in a number of areas where small adjustments to the policies of the Entity could help to further facilitate this important control. Statement of Concurrence or Nonconcurrence: Management concurs with this finding. Corrective Action: Management has issued written policies and required training of all employees that handle financial transactions and will continually evaluate processes to find ways to segregate duties where possible. Management and the board of directors will continue to oversee operations closely requiring approvals for all transactions.

View Audit 45582

Finding 42076 (2022-002)

Material Weakness 2022

The Oasis Institute and Supporting Organizations

MO

Subrecipient Monitoring Material Weakness Reporting

Finding No. 2022-002 Material Weakness Personnel Responsible For Corrective Action: Dawn Anderson, Chief Operating Officer Anticipated Completion Date: December 31, 2023 Corrective Action Plan: As mentioned above, we have already begun compiling the data for submission of the FFATA reportin...

Finding No. 2022-002 Material Weakness Personnel Responsible For Corrective Action: Dawn Anderson, Chief Operating Officer Anticipated Completion Date: December 31, 2023 Corrective Action Plan: As mentioned above, we have already begun compiling the data for submission of the FFATA reporting for the 2023 year. We will then work with resources from the Federal Subaward Reporting System (FSRS) to get current with prior reporting years for which we may be obligated. Prior to submission, the reports will be reviewed and approved. The FFATA reporting will become a regular part of our process going forward now that we understand our obligation.

View Audit 45579

Finding 42060 (2022-007)

Material Weakness 2022

Rikarbon, Inc.

DE

Questioned Costs Internal Control / Segregation of Duties Subrecipient Monitoring

Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. Corrective Actions: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside c...

Recommendation: The Company should ensure that finance staff is adequately trained as well as revising and monitoring internal controls. Corrective Actions: The Company will ensure that finance staff is adequately trained as well as revising and monitoring internal controls by engaging an outside certified public accounting firm for assistance.

View Audit 45576 Questioned Costs: $1

Finding 42035 (2022-004)

Significant Deficiency 2022

Guam Visitors Bureau

GU

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles § 200.400

Finding No.: 2022-004 Views of responsible officials: The Bureau will implement internal controls over compliance with applicable activities allowed or unallowed. Such controls will include obtaining written approval from the pass-through entity for any project and costs charged to the Federal awa...

Finding No.: 2022-004 Views of responsible officials: The Bureau will implement internal controls over compliance with applicable activities allowed or unallowed. Such controls will include obtaining written approval from the pass-through entity for any project and costs charged to the Federal award. Contact Person: Rudd Gudmalin, Financial Controller Expected Completion Date: September 30, 2023

View Audit 48157

Finding 42016 (2022-001)

Material Weakness 2022

City of Independence

OH

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

The HIDTA Financial Manager, in conjunction with the City's Finance Assistant, will request smaller dollar amounts with new advances in order to liquidate the prescribed HIDTA guideline of 21 days.

View Audit 38270

Finding 42010 (2022-012)

Significant Deficiency 2022

State of New York

NY

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles

State Agency: Office of Temporary and Disability Assistance Single Audit Contact: Thomas Cooper Title: Director of Internal Audit Telephone: (518) 473-4601 E-mail Address: Thomas.cooper@otda.ny.gov Federal Program(s) (ALN # [s]): Temporary Assistance for Needy Families (93.568) Audit Report Referenc...

State Agency: Office of Temporary and Disability Assistance Single Audit Contact: Thomas Cooper Title: Director of Internal Audit Telephone: (518) 473-4601 E-mail Address: Thomas.cooper@otda.ny.gov Federal Program(s) (ALN # [s]): Temporary Assistance for Needy Families (93.568) Audit Report Reference: 2022-012 Anticipated Completion Date: 1/31/2023 Corrective Action Planned: OTDA is working with our ITS development partners to implement updates to the OTDA FFATA reporting logic as follows: ? Raise expenditure threshold for subrecipients that equals or exceeds $30,000 (previous amount was $25,000). (This is complete.) ? When calculating the expenditures for subrecipient payments, the report logic needs to account for internal split coding and for multiple grant payments made on a single voucher. (This is complete.) ? Update reporting logic for SFS/OSC Accounting Date (previous logic used SFS/OSC Voucher Paid Date). The SFS Accounting Date will be used as the Obligation Date in accordance with the definition of Obligation Date in the guidance. Anticipated completion and implementation for reporting in January 2023.

View Audit 49189

Finding 42009 (2022-011)

Material Weakness 2022

State of New York

NY

Subrecipient Monitoring Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles

State Agency: Office of Temporary and Disability Assistance Single Audit Contact: Thomas Cooper Title: Director of Internal Audit Telephone: (518) 473-4601 E-mail Address: Thomas.cooper@otda.ny.gov Federal Program(s) (ALN # [s]): Temporary Assistance for Needy Families (93.558) Audit Report Referenc...

State Agency: Office of Temporary and Disability Assistance Single Audit Contact: Thomas Cooper Title: Director of Internal Audit Telephone: (518) 473-4601 E-mail Address: Thomas.cooper@otda.ny.gov Federal Program(s) (ALN # [s]): Temporary Assistance for Needy Families (93.558) Audit Report Reference: 2022-011 Anticipated Completion Date: 4/1/2022 Corrective Action Planned: Training has been provided to NYC Regional Office staff to further strengthen their understanding of the process for properly verifying employment data in order to robustly perform those Key Line items tasks identified in the finding. The OTDA Divisions of Audit and Quality Improvement (AQI) and the Employment and Advancement Services (EAS) Bureau within the Division of Employment and Income Support Programs (EISP) have been working together to implement corrective actions to address the finding. Due to staffing issues and delays caused by COVID, corrective action began with the April 2022 TANF/MOE sample month. Starting in November 2021, EAS worked with New York City (NYC) Human Resources Administration staff to train and closely monitor the work they do regarding employment data, while AQI ensured its Regional Office staff began to verify TANF/MOE data source documentation.

View Audit 49189

Finding 41994 (2022-003)

Significant Deficiency 2022

State of New York

NY

Subrecipient Monitoring § 200.303 § 200.332 § 200.521

State Agency: Department of Health Single Audit Contact: Melissa Fiore Title: Audit Services Director Telephone: 518-473-0525 E-mail Address: Melissa.Fiore@health.ny.gov Federal Program(s) (ALN # [s]): Child & Adult Care Food Program (10.558) Audit Report Reference: 2022-003 Anticipated Completion D...

State Agency: Department of Health Single Audit Contact: Melissa Fiore Title: Audit Services Director Telephone: 518-473-0525 E-mail Address: Melissa.Fiore@health.ny.gov Federal Program(s) (ALN # [s]): Child & Adult Care Food Program (10.558) Audit Report Reference: 2022-003 Anticipated Completion Date: 12/31/2023 Corrective Action Planned: The Department?s Audit Clearinghouse will continue to work with NYS Office of Information Technology Services to develop a system to better track grantees that require a single audit report, when a single audit report is available for review, and, if a management decision letter is needed. This will provide better assurance of timely review of all submitted single audit reports and communication to Child & Adult Care Food Program staff of findings in need of management decision letters.

View Audit 49189

Finding 41989 (2022-001)

Material Weakness 2022

U.s. Committee for Refugees and Immigrants, Inc. and Related Entity

VA

Subrecipient Monitoring Reporting

Finding: Under 2CFR Part 170, recipients of grants or cooperative agreements must report first -tier sub-awards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Sub-award Reporting System (FSRS). USCRI Comments: USCRI was unaware of this requirement that has been...

Finding: Under 2CFR Part 170, recipients of grants or cooperative agreements must report first -tier sub-awards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Sub-award Reporting System (FSRS). USCRI Comments: USCRI was unaware of this requirement that has been in effect since October 2010 and this issue was never identified in prior audits. They were not identified during desk audit monitoring with our federal grantors. Corrective Actions Taken or Planned: USCRI will enter the required data into the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) for all federal programs in March/April 2023, and will continue to work with current sub-grantees to report required data timely. USCRI will incorporate the data reporting under FFATA into all new agreements or amendments/renewals. The responsible person for correcting the finding is the Chief Financial Officer.

View Audit 45303

Finding 41957 (2022-003)

Material Weakness 2022

Youthprise

MN

Subrecipient Monitoring Reporting § 200.502 § 200.510

Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are made on the deficiency noted.

View Audit 39981

Finding 41954 (2022-005)

Significant Deficiency 2022

Youthprise

MN

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303

Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are made on the deficiency noted.

View Audit 39981

Finding 41953 (2022-004)

Significant Deficiency 2022

Youthprise

MN

Subrecipient Monitoring § 200.331 § 200.332

Management agrees with this finding and is in the process of developing internal controls to ensure timely and appropriate actions are made on the deficiency noted.

View Audit 39981

Finding 41945 (2022-001)

Material Weakness 2022

Seattle Good Business Network

WA

Subrecipient Monitoring § 200.303 § 200.332

Contact Person: Erin Adams, Executive Director Corrective Action Plan: The Organization will update their subrecipient monitoring policy to include the requirements outlined in CFR 200.332, which will also include a requirement to formally document all relevant award information for each subrecipie...

Contact Person: Erin Adams, Executive Director Corrective Action Plan: The Organization will update their subrecipient monitoring policy to include the requirements outlined in CFR 200.332, which will also include a requirement to formally document all relevant award information for each subrecipient under a federal award. Anticipated Completion Date: The Organization will update their policy no later than December 31, 2023.

View Audit 39887

Finding 41941 (2022-001)

None 2022

Lakewood Economic Action Program, Inc.

NJ

Matching / Level of Effort / Earmarking Subrecipient Monitoring

As of January 1, 2023, LEAP, Inc. is no longer operating the Head Start and Early Head Start Programs. Therefore the auditee did not submit a corrective action plan.

View Audit 39886

Finding 41921 (2022-002)

Significant Deficiency 2022

1890 Universities Foundation

DC

Subrecipient Monitoring § 200.303 § 200.330

Finding 2022-002 Condition: Management did not verify that its subrecipient?s were not suspended or debarred or otherwise excluded from participating in the transactions. Foundation?s Response: The Foundation does not concur. 2 CFR Part 180 provides OMB guidance ?only to Federal agencies? (2CFR ?...

Finding 2022-002 Condition: Management did not verify that its subrecipient?s were not suspended or debarred or otherwise excluded from participating in the transactions. Foundation?s Response: The Foundation does not concur. 2 CFR Part 180 provides OMB guidance ?only to Federal agencies? (2CFR ? 180.5). As a pass-through entity, the Foundation falls under Uniform Guidance requirements at 2 CFR 200.332. Verification that subrecipients are not suspended, debarred or otherwise excluded is not a requirement of 200.332. However, the Foundation is committed to diligence in our stewardship of Federal funds, therefore we took the auditor?s comment into consideration, and incorporated an annual review of the Do Not Pay list into our subrecipient pre-award risk assessments.

View Audit 44502

Finding 41920 (2022-001)

Material Weakness 2022

1890 Universities Foundation

DC

Subrecipient Monitoring Material Weakness Reporting

Finding 2022-001 SB Finding: During our audit, it came to our attention that the 2022 opening net assets did not reconcile to the 2021 independent audited amounts. There were several changes to prior year balances after the end of the audit. Additionally, there is no supervisory review of journal...

Finding 2022-001 SB Finding: During our audit, it came to our attention that the 2022 opening net assets did not reconcile to the 2021 independent audited amounts. There were several changes to prior year balances after the end of the audit. Additionally, there is no supervisory review of journal entries and general ledger activity on a monthly basis. Foundation?s Response: The Foundation does not concur. The auditor advised the Foundation that the material weakness finding was due to the ?additional time and effort needed to reconcile opening balances.? During the 2021 audit, the Foundation advised the auditor that general ledger account names would change in 2022, as part of the corrective action plan to clear the 2021 finding. The auditor acknowledged observing differences during the 2022 entrance conference, however there was no coordination to map account name changes prior to uploading the Foundation?s financial statements into the auditor?s system. As a result, multiple accounts did not map correctly to the 2021 account names and dozens of variances were created. Account name changes fell into two categories. First, we added clarifying language to distinguish expenditure accounts as G&A or Program. For example, the account name Travel: Reimbursements was changed to Company Travel: Reimbursements to clearly identify the account as a G&A expenditure. The purpose of which was to improve the effectiveness of account reconciliations, and reduce our risk of erroneous financial statement presentation, and our risk of erroneously charging an unallowable cost to federal funds. The Foundation updated 12 general ledger account names, and when posted into the auditor?s system, they were added as new accounts. This initially resulted in 24 account balance variances, however once the accounts were mapped, the variances were resolved. A second category of account changes involved the Foundation?s revenue accounts. The Foundation provided the auditor with a detailed accounting treatment plan during the 2021 audit as advance notice for 2022. We added primary accounts to clearly distinguish a funding source as Federal, Federal pass-through, non-Federal, Corporate and Private Donor, for the purpose of standardizing year-end accrual procedures and to ensure greater accuracy in the carry forward of net assets. Thirteen revenue accounts were moved under the new primary accounts, and this resulted in 18 variances in the SB system. Again, once the accounts were mapped, the variances were resolved. The Foundation does not expect mis-matched accounts to occur in the future. During our variance reconciliation, the Foundation added SB?s numerical codes to our account names to allow SB?s system to match records numerically, rather than by name. The Foundation did adjust two year-end accrual balances to correct items missed in 2021. During the 2022 audit the Foundation requested guidance on restating the 2021 statements for the adjustments, however, because the amount was immaterial, the auditor recommended the adjustment be made in 2022. Foundation removed the 2021 post-audit adjustments and posted them to 2022. The total amount of the adjustments was $126,031. The auditor?s corrective action was completed after the 2021 audit. Reconciliations are completed monthly, quarterly, and/or annually. Additionally, we engaged a bookkeeper that is credentialed as a certified professional advisor for our accounting software. The bookkeeper?s beginning task was to perform a ?health check? of the accrual accounts set up during the 2021 audit, and we were assured of the effectiveness of our accounts. On a monthly basis, the bookkeeper performs monthly account reconciliations, financial statement preparation, and variance identification, when applicable. The reconciliations are overseen by Foundation?s Director of Finance, a certified public accountant.

View Audit 44502

Corrective Action Plans

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