Corrective Action Plans

Finding 47598 (2022-001)

Significant Deficiency 2022

City of Haverhill

MA

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting

CORRECTIVE ACTION PLAN Oversight Agency for Audit: U.S. Department of Education The City of Haverhill, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Powers & Sullivan, LLC 10...

CORRECTIVE ACTION PLAN Oversight Agency for Audit: U.S. Department of Education The City of Haverhill, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Powers & Sullivan, LLC 100 Quannapowitt Parkway, Suite 101 Wakefield, MA 01880 Audit period: July 1, 2021 through June 30, 2022 The finding from the June 30, 2022, schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. DEPARTMENT OF EDUCATION Passed through the Massachusetts Department of Elementary and Secondary Education Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Federal Assistance Listing No. 84.010 Special Education Cluster Special Education Grants to States and Special Education Preschool Grants Federal Assistance Listing Numbers, 84.027 and 84.173. 2022-001: Controls for Monitoring Payroll Charged to the Grant Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Compliance and Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. Condition: Management has not established written guidelines and procedures outlining the time and effort reporting and documentation requirements that department heads must adhere with to ensure compliance with federal and state time and effort reporting requirements. Such guidelines and procedures should indicate under what circumstances semi-annual certifications and personnel activity reports (PARS) are required and should indicate due dates for when this information must be provided to the school business office. Management also has not adopted and implemented standardized forms for semi-annual certifications and PARS that include all data required by federal and state guidelines. Questioned Costs: None reported. Context: Payroll expenditures charged to the programs are required to be supported with documentation substantiating that the employees are eligible to be charged to the grant and that the payroll charged relates to time spent accomplishing grant objectives. This supporting documentation should be standardized and should include all required elements in accordance with Title 2 U.S. Code of Federal Regulations Part 225 Cost Principals for State, Local, and Indian Tribal Governments. The City did not have an adequate system of internal controls in place to provide sufficient documentation to demonstrate compliance with federal and state time and effort reporting requirements in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 225 Cost Principals for State, Local, and Indian Tribal Governments. Effect: The City has not complied with the federal and state time and effort reporting requirements. Cause: Lack of documented policies, procedures and guidelines in place to ensure compliance with time and effort reporting requirements. Repeat Finding: This matter was reported as a finding for the special education cluster grants in the previous year as finding 2021-004. Recommendation: Management should establish written guidelines and procedures outlining the time and effort reporting and documentation requirements that department heads must adhere with to ensure compliance with federal and state time and effort reporting requirements. Such guidelines and procedures should indicate under what circumstances semi-annual certifications and personnel activity reports (PARS) are required and should indicate due dates for when this information must be provided to the school business office. Management should also adopt and implement standardized forms for semi-annual certifications and PARS that include all data required by federal and state guidelines. Once the written guidelines and procedures have been established, training should be provided to ensure that the program managers fully understand the time and effort reporting requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will establish written guidelines and procedures outlining the time and effort reporting and documentation requirements that department heads must adhere with to ensure compliance with federal and state time and effort reporting requirements. Such guidelines and procedures will indicate under what circumstances semi-annual certifications and personnel activity reports (PARS) are required and will indicate due dates for when this information must be provided to the school business office. Management will also adopt and implement standardized forms for semi-annual certifications and PARS that include all data required by federal and state guidelines. Once the written guidelines and procedures have been established, training will be provided to ensure that the program managers fully understand the time and effort reporting requirements. Management intends to implement these procedures in fiscal 2023. If the Oversight Agency has questions regarding this plan, please call Michael Pfifferling, Assistant Superintendent of Finance and Operations at 978-374-3400. Sincerely yours, Michael Pfifferling Assistant Superintendent of Finance and Operations City of Haverhill

View Audit 52314

Finding 47505 (2022-005)

Significant Deficiency 2022

Culver-Stockton College

MO

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

The Title IV withdrawal calculation was complete on COD, but the amount the student was eligible for was transposed when entered on the internal withdrawal calculation form. A secondary review will be done prior to adjusting federal funds in the College?s internal system. This process was implemente...

The Title IV withdrawal calculation was complete on COD, but the amount the student was eligible for was transposed when entered on the internal withdrawal calculation form. A secondary review will be done prior to adjusting federal funds in the College?s internal system. This process was implemented February 15, 2023, and the responsible college official is Tina Wiseman, Director of Financial Aid.

View Audit 41971

Finding 47503 (2022-003)

Significant Deficiency 2022

Culver-Stockton College

MO

Student Financial Aid Subrecipient Monitoring Special Tests & Provisions

The Financial Aid Office has updated its internal procedures to ensure disbursements for first-time borrowers will not occur until after the 30 day delayed requirement. To ensure this procedure, the disbursement date has been calculated for 30 days after the first day of class for first-time borrowe...

The Financial Aid Office has updated its internal procedures to ensure disbursements for first-time borrowers will not occur until after the 30 day delayed requirement. To ensure this procedure, the disbursement date has been calculated for 30 days after the first day of class for first-time borrowers on the Period of Enrollments (POE). This process was implemented October 1, 2022, and the responsible college official is Tina Wiseman, Director of Financial Aid.

View Audit 41971

Finding 47502 (2022-002)

Significant Deficiency 2022

Culver-Stockton College

MO

Internal Control / Segregation of Duties Special Tests & Provisions Student Financial Aid

The College has implemented a weekly review and refund of student account credit balances to maintain compliance with this requirement. This process was implemented August 22, 2022, and the responsible college official was Diane Bozarth, Chief Financial Officer, who retired January 6, 2023. The new ...

The College has implemented a weekly review and refund of student account credit balances to maintain compliance with this requirement. This process was implemented August 22, 2022, and the responsible college official was Diane Bozarth, Chief Financial Officer, who retired January 6, 2023. The new responsible college official will be Julie Straus, Chief Financial Officer.

View Audit 41971

Finding 47500 (2022-009)

Material Weakness 2022

North Lawrence Community Schools

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management § 200.303

FINDING 2022-009 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: As of July 2022, internal controls were put into ...

FINDING 2022-009 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: As of July 2022, internal controls were put into place to ensure supporting documentation was attached to all reimbursements. Anticipated Completion Date: July 2022

View Audit 41189

Finding 47495 (2022-017)

Material Weakness 2022

North Lawrence Community Schools

IN

Subrecipient Monitoring Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2022-017 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school corporation will develop a pro...

FINDING 2022-017 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school corporation will develop a protocol for ensuring that all documentation and records regarding Federal Grants will be maintained for a period of three years. Anticipated Completion Date: North Lawrence Community Schools implemented this procedure beginning in September 2022.

View Audit 41189

Finding 47493 (2022-018)

Material Weakness 2022

North Lawrence Community Schools

IN

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.303

FINDING 2022-018 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school corporation will develop a ser...

FINDING 2022-018 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school corporation will develop a series of checkpoints for federal grants. This includes multiple staff reviews and approvals prior to purchases. In addition, the reimbursement process includes multiple reviews and approvals prior to submission. Anticipated Completion Date: North Lawrence Community Schools implemented this procedure beginning in January 2023. INDIANA STATE

View Audit 41189

Finding 47486 (2022-015)

Material Weakness 2022

North Lawrence Community Schools

IN

Special Tests & Provisions Subrecipient Monitoring Material Weakness § 200.303

FINDING 2022-015 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school district will establish a proc...

FINDING 2022-015 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school district will establish a process for monitoring the services provided to students in the nonpublic school. Anticipated Completion Date: North Lawrence Community Schools will implement this procedure by June 2023.

View Audit 41189

Finding 47485 (2022-014)

Material Weakness 2022

North Lawrence Community Schools

IN

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2022-014 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school district has established a pro...

FINDING 2022-014 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school district has established a process for reviewing reimbursements and district expense records to ensure alignment. Anticipated Completion Date: North Lawrence Community Schools implemented this procedure beginning in January 2023.

View Audit 41189

Finding 47484 (2022-013)

Material Weakness 2022

North Lawrence Community Schools

IN

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303 § 200.334 § 200.77 § 200.78

FINDING 2022-013 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The district will develop a system for re...

FINDING 2022-013 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The district will develop a system for reviewing the Real Time report to ensure accuracy. In addition, the district will maintain a copy of the participating nonpublic school?s summary data related to enrollment and poverty status. Anticipated Completion Date: North Lawrence Community Schools will implement this procedure by June 2023.

View Audit 41189

Finding 47483 (2022-012)

Material Weakness 2022

North Lawrence Community Schools

IN

Subrecipient Monitoring Special Tests & Provisions Matching / Level of Effort / Earmarking § 200.207 § 200.303 § 200.333

FINDING 2022-012 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The district will scan and save all testi...

FINDING 2022-012 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The district will scan and save all testing security agreements for all staff. The test coordinator will be responsible for ensuring that all relative staff complete training and sign testing agreements. Anticipated Completion Date: North Lawrence Community Schools implemented this procedure beginning in September 2022.

View Audit 41189

Finding 47477 (2022-007)

Material Weakness 2022

North Lawrence Community Schools

IN

Subrecipient Monitoring Cash Management Material Weakness § 200.207 § 200.303 § 200.305 § 200.334

FINDING 2022-007 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: As it relates to cash management for the Special ...

FINDING 2022-007 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: As it relates to cash management for the Special Education Cluster (IDEA), the District?s Treasurer and Special Education Director will review all cash balances quarterly to verify compliance with the grant agreement. As of July 2022, internal controls were put into place to ensure supporting documentation was attached to all reimbursements. Anticipated Completion Date: March 2023

View Audit 41189

Finding 47476 (2022-006)

Material Weakness 2022

North Lawrence Community Schools

IN

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.333 § 200.403

FINDING 2022-006 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: As it relates to retaining proper documentation f...

FINDING 2022-006 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: As it relates to retaining proper documentation for an audit for Activities allowed or un-allowed, and allowable cost/costs, a policy and procedure will be implemented regarding the documentation and retention of records. Review and approval of activities reimbursed by the Special Education Grants to States and Special Education Preschool Grants will have the appropriate backup documentation (e.g. invoices, purchase orders, contracts, receipts) to ensure alignment to the IDOE grant, as well as documentation that funds were encumbered within the financial system by the respective period of performance end date. As of July 2022, these activities began being reviewed and approved by two separate individuals. Anticipated Completion Date: July 2022

View Audit 41189 Questioned Costs: $1

Finding 47475 (2022-008)

Material Weakness 2022

North Lawrence Community Schools

IN

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2022-008 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: A print out of the current expenses and balances ...

FINDING 2022-008 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: A print out of the current expenses and balances will be reviewed by the Special Education Director and District?s Treasurer before the cash request is emailed to the state to ensure there is proper compliance with grant agreement and the matching, level of effort, earmarking and reporting compliance Anticipated Completion Date: February 2023

View Audit 41189

Finding 47452 (2022-004)

Material Weakness 2022

North Lawrence Community Schools

IN

Questioned Costs School Nutrition Programs Procurement, Suspension & Debarment § 200.303 § 200.334

FINDING 2022-004 Contact Person Responsible for Corrective Action: Robyn Muder, Director of Business Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: Supporting documentation for all transfers out of the Food S...

FINDING 2022-004 Contact Person Responsible for Corrective Action: Robyn Muder, Director of Business Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: Supporting documentation for all transfers out of the Food Service account are kept in a labeled folder. Anticipated Completion Date: North Lawrence Community Schools implemented this procedure in 2022.

View Audit 41189 Questioned Costs: $1

Finding 47451 (2022-003)

Material Weakness 2022

North Lawrence Community Schools

IN

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.334 § 200.403

FINDING 2022-003 Contact Person Responsible for Corrective Action: Robyn Muder, Director of Business Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: Internal controls were updated in 2022. All supporting docum...

FINDING 2022-003 Contact Person Responsible for Corrective Action: Robyn Muder, Director of Business Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: Internal controls were updated in 2022. All supporting documentation is attached to vouchers for more efficient and effective business practices. The financial software was updated in January of 2023 to keep fringe benefit information retained. North Lawrence Community Schools has implemented a new procedure to pay mileage as a vendor payment instead of reimbursement through payroll to keep it separate from employees? gross earnings. North Lawrence Community Schools has implemented new practice to send all salary employees contracts which must be signed and kept in their personnel files. North Lawrence Community Schools has implemented new practices to prevent employees from being off of the board approved hourly pay schedule. North Lawrence Community Schools no longer utilizes paper timesheets. We now use an electronic time clock system. North Lawrence Community Schools is updating direct deposit information for all employees. Anticipated Completion Date: North Lawrence Community Schools implemented this procedure in 2023.

View Audit 41189 Questioned Costs: $1

Finding 47441 (2022-003)

Material Weakness 2022

Vincennes Community School Corporation

IN

Subrecipient Monitoring Material Weakness Reporting § 200.302 § 200.303 § 200.328

FINDING 2022-003 Education Stabilization Fund-Internal Controls Contact Person Responsible for Corrective Action: Michele Fleck, Treasurer Contact Phone Number: 812-882-4844 Description of Corrective Action Plan: Effectively immediately, the Vincennes Community School Corporation will include t...

FINDING 2022-003 Education Stabilization Fund-Internal Controls Contact Person Responsible for Corrective Action: Michele Fleck, Treasurer Contact Phone Number: 812-882-4844 Description of Corrective Action Plan: Effectively immediately, the Vincennes Community School Corporation will include the Federal Programs Coordinator when preparing any annual reports to confirm accuracy of the reporting. This will provide more internal controls. Anticipated Completion Date: 07/01/2023.

View Audit 53344

Finding 47440 (2022-002)

Material Weakness 2022

Vincennes Community School Corporation

IN

Matching / Level of Effort / Earmarking Special Tests & Provisions Subrecipient Monitoring § 200.303

FINDING 2022-002 Education Stabilization Fund-Special Tests and Provisions - Wage Rate Requirements Contact Person Responsible for Corrective Action: Michele Fleck, Treasurer Contact Phone Number: 812-882-4844 Description of Corrective Action Plan: Effectively immediately, the Vincennes Communi...

FINDING 2022-002 Education Stabilization Fund-Special Tests and Provisions - Wage Rate Requirements Contact Person Responsible for Corrective Action: Michele Fleck, Treasurer Contact Phone Number: 812-882-4844 Description of Corrective Action Plan: Effectively immediately, the Vincennes Community School Corporation will obtain wage reports from construction vendors. We will make sure to follow the Davis Bacon Act requirements as it pertains to paying construction costs using ESSER funds. Anticipated Completion Date: 07/01/2023

View Audit 53344

Finding 47418 (2022-001)

Material Weakness 2022

Soap Lake School District No. 156

WA

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

Finding ref number:2022-01 Finding caption: The District did not have adequate controls for ensuring compliance with federal wage rate requirements. Name, address, and telephone of District contact person: Nicole Courtney, Business Manager P.O. Box 1389 Soap Lake, WA 98851 (509) 667-7119 Corrective...

Finding ref number:2022-01 Finding caption: The District did not have adequate controls for ensuring compliance with federal wage rate requirements. Name, address, and telephone of District contact person: Nicole Courtney, Business Manager P.O. Box 1389 Soap Lake, WA 98851 (509) 667-7119 Corrective action the auditee plans to take in response to the finding: For future federal prevailing wage projects, the district will have an attorney specializing in public works construction law to review and update contracts to include language regarding Davis Bacon wages and contractors' responsibilities to file weekly certified payroll per 29 CFR 3.3, 3.4 and 5.5. Recognizing that most contractors in Soap Lake School District's circle will not be familiar with 29 CFR, the district will take what was learned in this audit to ensure they are fully aware of their responsibilities and obligations to file the weekly certified payroll under federal funds. Anticipated date to complete the corrective action: March 2024

View Audit 53752

Finding 47415 (2022-001)

Material Weakness 2022

Northport School District No. 211

WA

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

Northport School District will follow the corrective action to ensure that adequate internal controls are followed. Northport School District will make sure that a formal contract is written up and the entire Federal Prevailing Wage clause is included in the contract. Northport School District w...

Northport School District will follow the corrective action to ensure that adequate internal controls are followed. Northport School District will make sure that a formal contract is written up and the entire Federal Prevailing Wage clause is included in the contract. Northport School District will rely on a Project Manager who is responsible for collecting weekly certified payroll reports from contractors and subcontractors for each week in which work was performed. Northport School District will monitor the Project Manager to ensure all weekly certified payrolls are being collected. Northport School District will make every effort to ensure that correct procedures are followed.

View Audit 53523

Finding 47413 (2022-002)

Significant Deficiency 2022

Metropolitanchildren & Youth Inc. Unitedchildren and Family Head Start

MI

Reporting Subrecipient Monitoring Significant Deficiency

The Agency agrees to the finding and will ensure the timely filing of all the reports in the future.

View Audit 52405

Finding 47390 (2022-001)

Significant Deficiency 2022

Family Involvement Center, Inc.

AZ

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303

U.S. Department of Health and Human Services Family Involvement Center, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit period: October 1, 2021 ? September 30, 2022 The findings from the schedule of findings and questioned costs are discuss...

U.S. Department of Health and Human Services Family Involvement Center, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit period: October 1, 2021 ? September 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Health and Human Services 2022-001 Children?s Health Insurance Program ? Assistance Listing No. 93.767 Recommendation: Management should improve internal control monitoring activities over reporting requirements by establishing a log of all required reports with deadlines and sign offs responsible parties. This log should be regularly reviewed by management to ensure completely and timely report submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. The reporting requirement deadlines were missed due to changes in personnel and vacancies in both program and financial work areas. Action taken in response to finding: A review of the Financial Policies & Procedures clearly outline responsibilities related to this finding. Review of the Financial Policies and Procedures will be conducted by the Finance Director to the grant program/operation staff and finance staff. The Executive Director will carefully review each award and contract to ensure compliance through delegation to the Finance Director and establish a log and calendar for monitoring. Name(s) of the contact person(s) responsible for corrective action: Kathy Kelley, Finance Director Planned completion date for corrective action plan: Aug 16, 2023. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Kathy Kelley at 602.412.4090

View Audit 48466

Finding 47389 (2022-001)

Significant Deficiency 2022

Johnson City Energy Authority Dba Brightridge

TN

Questioned Costs Matching / Level of Effort / Earmarking Subrecipient Monitoring

Corrective Action Plan: The USDA Rural Economic Development Loan (REDL) is an 80%/20% loan, where the ultimate recipient is responsible for 20% of the cost of each dollar spent up to the maximum loan amount. For this finding, the ultimate recipient was approved for a $1,000,000 loan that requires $1...

Corrective Action Plan: The USDA Rural Economic Development Loan (REDL) is an 80%/20% loan, where the ultimate recipient is responsible for 20% of the cost of each dollar spent up to the maximum loan amount. For this finding, the ultimate recipient was approved for a $1,000,000 loan that requires $1,250,000 to be spent to receive the full loan of $1,000,000. BrightRidge, the intermediary, paid out 100% of the first $866,307 of receipts provided by the ultimate loan recipient instead of 80% which would have been $693,045.60. In doing so, BrightRidge intended to pay a lessor percentage on the remaining receipts provided by the ultimate recipient to ensure an 80%/20% sharing was complied with on the total loan amount of $1,000,000. The loan is secured by an irrevocable standby letter of credit provided by the ultimate recipient. BrightRidge was made aware by our independent auditors that regardless of the intent, payments of any monies should be supported by the 80%/20% split based on receipts from the ultimate recipient. BrightRidge agrees and understands that payments to the recipient must not exceed 80% of the receipts from approved expenditures on any future USDA REDL loan. At June 30, 2022, the loan is not fully paid out due to delays in the delivery of cutting machinery that will account for most of the final payment. The remaining $133,693 of USDA funds will be paid out to the ultimate recipient when receipts of $383,693 are provided by the ultimate recipient. BrightRidge will continue to monitor the final payments to the ultimate recipient and will adhere to payout requirements on any future USDA Rural Development Loans. BrightRidge has had four USDA REDL loans in the history of the organization making these an infrequent occurrence. As of June 30, 2022, BrightRidge has no other pending USDA REDL loan applicants.

View Audit 41564 Questioned Costs: $1

Finding 47387 (2022-003)

Significant Deficiency 2022

Michigan Interfaith Housing Corporation, Inc.

MI

Subrecipient Monitoring Reporting

Finding # 2022.003 View of Responsible Officials: The Project will review its processes and procedures over reporting submissions required under its Federal awards and will submit the audit report and data collection form for the year ended December 31, 2022, within the required deadline. Responsibl...

Finding # 2022.003 View of Responsible Officials: The Project will review its processes and procedures over reporting submissions required under its Federal awards and will submit the audit report and data collection form for the year ended December 31, 2022, within the required deadline. Responsible Party: Darrell Lancour Estimated Completion: December 31, 2022

View Audit 45904

Finding 47386 (2022-003)

Significant Deficiency 2022

Northland Lutheran Affordable Living for the Elderly, Inc.

MI

Subrecipient Monitoring Reporting

Finding # 2022.003 View of Responsible Officials: The Project will review its processes and procedures over reporting submissions required under its Federal awards and will submit the audit report and data collection form for the year ended December 31, 2022, within the required deadline. Responsibl...

Finding # 2022.003 View of Responsible Officials: The Project will review its processes and procedures over reporting submissions required under its Federal awards and will submit the audit report and data collection form for the year ended December 31, 2022, within the required deadline. Responsible Party: Darrell Lancour Estimated Completion: December 31, 2022

View Audit 45903

Corrective Action Plans

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