Corrective Action Plans

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Finding Number 2024-018 Subject Heading (Financial) or AL no. and program name (Federal) 20.509 – Formula Grants for Rural Areas Planned Corrective Action Contract Template and Review Process Improvements: OMPT has updated and corrected the standard contract templates to ensure all required federal ...
Finding Number 2024-018 Subject Heading (Financial) or AL no. and program name (Federal) 20.509 – Formula Grants for Rural Areas Planned Corrective Action Contract Template and Review Process Improvements: OMPT has updated and corrected the standard contract templates to ensure all required federal award information is accurate and consistently included. In addition, the contract agreement review process has been strengthened and formalized into a two-step review. Agreements are now reviewed by a supervisor and/or manager prior to submission to the division head for final signature. This enhanced review structure is designed to ensure the completeness and accuracy of grant information and to reduce the risk of errors in subrecipient agreements. For active subrecipient agreements identified as containing incorrect federal award information, OMPT will issue formal written notifications (via letter or email) to provide corrected grant details and ensure subrecipients have accurate information for compliance purposes. Subrecipient Monitoring and Single Audit Procedures: OMPT will continue implementation of enhanced subrecipient risk assessment procedures as part of its monitoring process. This includes formal documentation of risk assessments, as well as required inquiries with subrecipients to determine the appropriate audit type based on expected federal expenditures. Procedures related to Single Audit tracking and followup are being strengthened. The Single Audit Tracking Sheet will be updated monthly and reviewed for completeness and timeliness. Anticipated Completion Date 12/31/2026 Responsible Contact Person Eric Rose / Bobby Parkinson (OMPT)
Finding Number 2024-050 Subject Heading (Financial) or AL no. and program name (Federal) 20.205 - Highway Planning and Construction Planned Corrective Action The following actions will be taken to improve our payroll processes and ensure compliance with the Code of Federal Regulations (CFR) and the ...
Finding Number 2024-050 Subject Heading (Financial) or AL no. and program name (Federal) 20.205 - Highway Planning and Construction Planned Corrective Action The following actions will be taken to improve our payroll processes and ensure compliance with the Code of Federal Regulations (CFR) and the Oklahoma Department of Transportation (ODOT) Specifications and Construction Control Directive (CCD). We have detailed written procedures for the Residencies in the form of a Construction Control Directive (CCD). It is the expectation that the CCD will be followed, and this expectation will be relayed to those responsible for ensuring that ODOT is in compliance with the Davis- Bacon Act. It is unknown whether or not appropriate actions were taken by the Residency in response to the delayed submission of payroll records. The CCD will be emphasized at a future District Engineer meeting and at an upcoming Resident Engineer Academy. Steps will be taken to ensure each Residency has a date stamp and is instructed to use it appropriately. Steps will be taken to ensure that those responsible for verifying payroll with interview results are conducting the process correctly. Expectations will be made clear that interviews will be conducted with the appropriate contractor and subcontractor personnel. Management will stress to the Residencies that extra effort will be needed to diversify interviews on projects. We are in the process of activating the electronic payroll portion of AASHTOWare Project, which will automate much of our payroll process and reduce the occurrence of discrepancies such as those identified in this finding. The use of this system will become mandatory for our contractors with the October 2026 lettings. As part of this process, we will create a Special Provision and update the CCD. ODOT Audit Office conducted an internal Labor Wage Audit last year and covered the findings at the last Resident Engineer Academy. Anticipated Completion Date 10/31/2026 Responsible Contact Person John B. Leonard
Finding Number 2024-047 Subject Heading (Financial) or AL no. and program name (Federal) 20.205 - Highway Planning and Construction Planned Corrective Action ODOT Contract Compliance Division (CCD) is updating the Guidelines for the Administration of Consultant Contracts, Standard Operating Procedur...
Finding Number 2024-047 Subject Heading (Financial) or AL no. and program name (Federal) 20.205 - Highway Planning and Construction Planned Corrective Action ODOT Contract Compliance Division (CCD) is updating the Guidelines for the Administration of Consultant Contracts, Standard Operating Procedures (SOPs) and training staff on correct procedures for filing documentation. Discussion was held with the ACEC Admin Working Group on 4/7/2026, that FAR Audits were not being submitted timely, and additional guidance would be issued by ODOT. ODOT CCD is partnering with the ODOT Audit Office for FAR Audit Requirements and the development of Self-Certification and Safe Harbor Rate Programs. FAR requirements will be discussed at the annual ACEC Partnering Conference in September 2026. ODOT will provide copies of updated Guidelines and SOPs as they are developed. Anticipated Completion Date 12/31/2026 Responsible Contact Person Jennifer Hankins
Finding Number 2024-087 Subject Heading (Financial) or AL no. and program name (Federal) #17.225 Unemployment Insurance Planned Corrective Action The agency concurs with the findings and agrees with the recommendations. The agency acknowledges our responsibility for program integrity and proper cont...
Finding Number 2024-087 Subject Heading (Financial) or AL no. and program name (Federal) #17.225 Unemployment Insurance Planned Corrective Action The agency concurs with the findings and agrees with the recommendations. The agency acknowledges our responsibility for program integrity and proper controls for the RESEA program. As we referenced in our response last year, the agency has undertaken modernization efforts to provide better solutions for the RESEA program. EmployOklahoma is the first result of this effort in the workforce employment area and it launched in January 2025 as the replacement for OKJM. We anticipate continued progress and improvement going forward, but there will continue to be elevated risk for inaccuracies until the agency’s modernization efforts are successful in implementing solutions to address both the case management and data reporting requirements needed to fully resolve these findings. In Fall 2025 and continuing through 2026, UI Program staff has provided guidance and training on unemployment compensation (UC) eligibility requirements, specifically as it relates to Able & Available issues and Job Search requirements. Additionally, RESEA Program staff continue to provide ongoing training to, and oversight of RESEA case management staff. While we expect continued issues through FY2024, we anticipate improvement in FY2025 as ongoing changes in the case management system and increased staff training on RESEA program requirements drive us closer toward improved reporting and program outcomes. Anticipated Completion Date Ongoing until modernization of RESEA tools is complete Responsible Contact Person Tammy Wood, RESEA/TAA Program Manager
Finding Number 2024-085 Subject Heading (Financial) or AL no. and program name (Federal) #17.225 Unemployment Insurance Planned Corrective Action The agency concurs with the finding and acknowledges our responsibility for program integrity and proper controls for the RESEA program. As we referenced ...
Finding Number 2024-085 Subject Heading (Financial) or AL no. and program name (Federal) #17.225 Unemployment Insurance Planned Corrective Action The agency concurs with the finding and acknowledges our responsibility for program integrity and proper controls for the RESEA program. As we referenced in our response last year, the agency has undertaken modernization efforts to provide better solutions for the RESEA program. EmployOklahoma (EO) is the first result of this effort in the workforce employment area and launched in January 2025 as the replacement for Oklahoma Job Match (OKJM). The recommendation as detailed above (to continue development of OKJM) is no longer applicable, due to the successful transition to the new EmployOklahoma system, which generates accurate, reliable data. Additionally, we instituted, and continue to provide ongoing training to RESEA staff to ensure proper implementation of new policies and procedures. We anticipate there will continue to be elevated risk for inaccuracies through early FY2025 (December 2024), as reporting data was still being provided through OKJM legacy data. Beginning January 2025 the agency’s EO modernization initiatives were initiated. OESC believes we’ve successfully implemented comprehensive solutions to address both the case management and data reporting requirements needed to fully resolve this finding. Anticipated Completion Date Completed in March 2026 Responsible Contact Person Tammy Wood, RESEA/TAA Program Manager
Finding Number 2024-079 Subject Heading (Financial) or AL no. and program name (Federal) 10.565 – Food Distribution Cluster Planned Corrective Action OKDHS agrees that documentation supporting the approval and eligibility of participating CSFP agencies should be consistently completed, reviewed, and...
Finding Number 2024-079 Subject Heading (Financial) or AL no. and program name (Federal) 10.565 – Food Distribution Cluster Planned Corrective Action OKDHS agrees that documentation supporting the approval and eligibility of participating CSFP agencies should be consistently completed, reviewed, and retained. The condition identified by the auditors reflects a documentation and record-retention control weakness. The absence of documentation available for audit does not, by itself, establish that the participating agency was ineligible; however, OKDHS recognizes that sufficient documentation must be maintained to demonstrate compliance with applicable program requirements. To strengthen controls over the onboarding, approval, and ongoing oversight of participating agencies, the Food Distribution Unit is implementing a standardized onboarding process. The process will include a checklist identifying required eligibility and program documentation that must be submitted by the food bank and reviewed by OKDHS as part of the approval process. Required documentation will include, as applicable, the Civil Rights Questionnaire, nonprofit and identifying information, required agreements, and confirmation that appropriate program information and training have been provided. Following review of the required documentation, OKDHS will document its approval of eligible participating agencies and maintain final agreements and supporting documentation within the Food Distribution Unit's program files in accordance with applicable record-retention requirements. OKDHS will also review its agreements and related procedures with its food bank partners to improve consistency in the documentation, retention, and availability of records supporting participating agencies. As part of this effort, OKDHS will work with the food banks to strengthen centralized record-retention practices and clarify responsibilities for maintaining records required by federal and state program requirements. Ongoing monitoring activities will include review of applicable eligibility, agreement, and record-retention documentation. Identified instances of noncompliance will be addressed through corrective action and technical assistance, as appropriate. In addition, OKDHS will provide annual training to food bank partners addressing participating-agency eligibility, record retention, civil rights requirements, and other applicable CSFP and TEFAP program requirements. These actions are intended to strengthen the consistency of the eligibility approval process and provide reasonable assurance that required documentation is complete, appropriately reviewed, retained, and available for subsequent monitoring or audit. Anticipated Completion Date Standardized onboarding checklist: July 30, 2026 Annual training materials: August 30, 2026 Review of food bank greements and centralized recordretention processes: September 30, 2026 Responsible Contact Person Kayla Urtz
Finding Number 2024-076 Subject Heading (Financial) or AL no. and program name (Federal) 10.565 – Food Distribution Cluster Planned Corrective Action OKDHS agrees that documentation supporting participant eligibility should be consistently maintained and retained in accordance with program requireme...
Finding Number 2024-076 Subject Heading (Financial) or AL no. and program name (Federal) 10.565 – Food Distribution Cluster Planned Corrective Action OKDHS agrees that documentation supporting participant eligibility should be consistently maintained and retained in accordance with program requirements. The condition identified by the auditors represents a documentation and record-retention weakness at one participating local pantry during a limited period. The absence of documentation available during the audit does not, by itself, establish that participant eligibility determinations were incorrect or that ineligible individuals received program benefits; rather, it limits the ability to independently verify those determinations after the fact. It should also be noted that OKDHS conducted an on-site review of this pantry in June 2023 and again in August 2025. During the 2025 review, current participant intake records were available and reviewed to verify that eligibility determinations were being performed in accordance with program requirements. Contrary to the finding's characterization, OKDHS reviews completed participant intake forms during monitoring activities, not merely blank application forms. In accordance with federal requirements, routine CSFP reviews are conducted every two years unless a participating agency is identified as higher risk, in which case more frequent monitoring is performed. To further strengthen oversight, OKDHS is implementing a standardized onboarding process for new participating pantries and new local management. This process will include standardized checklists, verification of required agreements and documentation, confirmation that required program training has been completed, and notification requirements when management changes occur at participating agencies. OKDHS will also work with its food bank partners to strengthen centralized record-retention practices, clarify documentation responsibilities, and reinforce record retention requirements through annual training and technical assistance. Ongoing monitoring activities will continue to include reviews of participant eligibility documentation, agreements, and record-retention practices, with corrective actions implemented whenever deficiencies are identified. These enhancements build upon existing monitoring activities and provide additional assurance that required documentation is consistently maintained and available for future monitoring and audit. Anticipated Completion Date In Progress Responsible Contact Person Kayla Urtz
Finding Number 2024-088 Subject Heading (Financial) or AL no. and program name (Federal) 10.565 – Food Distribution Cluster Planned Corrective Action OKDHS agrees that documentation supporting the receipt, distribution, and accountability of CSFP food packages should be consistently maintained in ac...
Finding Number 2024-088 Subject Heading (Financial) or AL no. and program name (Federal) 10.565 – Food Distribution Cluster Planned Corrective Action OKDHS agrees that documentation supporting the receipt, distribution, and accountability of CSFP food packages should be consistently maintained in accordance with federal program requirements. The condition identified by the auditors represents a documentation and recordkeeping weakness at one participating local pantry and does not, by itself, establish that USDA commodities were lost, misused, or improperly distributed. With respect to the reported inventory discrepancy, the issue identified during the audit related to documentation supporting home deliveries. While the local pantry did not maintain documentation at the site to support the number of food packages assigned to a delivery route, OKDHS does not agree that the food packages should be characterized as unaccounted for. Home delivery distributions are finalized after the delivery route is completed to ensure inventory records accurately reflect the commodities actually delivered and any packages returned to the pantry if a delivery cannot be completed. Requiring documentation to be completed before deliveries are finalized could result in inaccurate inventory records when circumstances change during the delivery route. The documentation weakness identified was the lack of retained supporting documentation demonstrating the number of packages assigned for home delivery. OKDHS currently performs management reviews in accordance with 7 CFR 247.34, including on-site reviews of participating agencies at least once every two years, with more frequent monitoring of agencies identified as higher risk. Agencies with identified deficiencies are required to submit corrective action plans, and follow-up reviews are conducted until corrective actions have been satisfactorily implemented. Accordingly, OKDHS believes its existing monitoring process is consistent with federal requirements while recognizing that documentation controls can be strengthened. To further enhance internal controls, OKDHS will work with its food bank partners to standardize documentation requirements for home deliveries, strengthen record retention practices, and clarify responsibilities for maintaining receiving, inventory, and distribution records. OKDHS will also require food banks to incorporate these documentation requirements into their oversight of local pantries and will provide annual training reinforcing federal inventory accountability, documentation, and record retention requirements. In addition, OKDHS will continue evaluating monitoring practices and available resources to determine the most effective methods for strengthening oversight of participating agencies while continuing to meet all applicable federal monitoring requirements. These enhancements build upon the existing management review process and are intended to provide additional assurance that inventory records are complete, accurate, and available for future monitoring and audit activities. Anticipated Completion Date In Progress Responsible Contact Person Kayla Urtz
Finding Number 2024-107 Subject Heading (Financial) or AL no. and program name (Federal) 10.557: Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) Planned Corrective Action OSDH management agrees with this finding and will work with OMES to ensure Workday payroll expendit...
Finding Number 2024-107 Subject Heading (Financial) or AL no. and program name (Federal) 10.557: Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) Planned Corrective Action OSDH management agrees with this finding and will work with OMES to ensure Workday payroll expenditures are accurately reflected in PeopleSoft’s general ledger based on actual project time worked rather than budgeted position setup allocations. We are actively exploring reconciliation steps within PeopleSoft to accurately record project time worked in accordance with approved timecards to the appropriate funding within the general ledger. Anticipated Completion Date 06/30/27 Responsible Contact Person Ryon Fields, Interim CFO
Finding Number 2024-083 Subject Heading (Financial) or AL no. and program name (Federal) 10.551 – SNAP Cluster Planned Corrective Action OKDHS agrees with the finding and recommendation. The agency recognizes that the volume of GI DX discrepancy messages, combined with limited automated triage capab...
Finding Number 2024-083 Subject Heading (Financial) or AL no. and program name (Federal) 10.551 – SNAP Cluster Planned Corrective Action OKDHS agrees with the finding and recommendation. The agency recognizes that the volume of GI DX discrepancy messages, combined with limited automated triage capabilities, contributed to delays in resolving exceptions within the required 45-calendar-day timeframe. As noted by the auditors, the existing process relied heavily on manual review and did not provide sufficient management oversight tools to effectively monitor aging discrepancies and ensure timely resolution. OKDHS has initiated a muti-faceted corrective action plan designed to improve the timeliness, consistency, and accountability of G1DX exception resolution. As part of this effort, OKDHS is developing an automated pre-screening process for National New Hire (NNH), State New Hire (SNH), and Oklahoma Wage (OWG) discrepancy messages. The automated process is intended to evaluate discrepancies against established policy criteria and reduce the number of non-actionable matches requiring manual review. Discrepancies identified as requiring staff review will be routed to eligibility staff with standardized documentation and processing guidance. Additionally, OKDHS is developing formal procedures governing the review, monitoring, and resolution of GIDX discrepancies. These procedures will define staff responsibilities, supervisory oversight expectations, escalation requirements, and management use of exception monitoring reports to support the timely resolution of discrepancies. Management reporting and monitoring controls are also being enhanced to improve visibility into outstanding discrepancies and aging trends. Supervisors and program management will utilize exception reporting to monitor workloads, identify training opportunities, and promote accountability for timely processing. OKDHS will also provide training and implementation guidance to staff and supervisors regarding revised workflows, discrepancy resolution requirements, documentation standards, and management monitoring expectations. The agency anticipates implementation of the planned enhancements beginning in October 2026, with continued monitoring and refinement following deployment to ensure the corrective actions effectively address the underlying control deficiencies identified in the finding. Anticipated Completion Date 10/5/26 Responsible Contact Person Kayla Urtz
Finance Finding: 2024-002 - Reporting Corrective Action Plan Type of Finding: Noncompliance and Material Weakness in Internal Control Over Compliance Federal Agency: U.S. Department of Treasury Federal Program Title: COVID 19 - Coronavirus State and Local Fiscal Recover Funds ALN: 21.027 Corrective ...
Finance Finding: 2024-002 - Reporting Corrective Action Plan Type of Finding: Noncompliance and Material Weakness in Internal Control Over Compliance Federal Agency: U.S. Department of Treasury Federal Program Title: COVID 19 - Coronavirus State and Local Fiscal Recover Funds ALN: 21.027 Corrective Action: The City recognizes the importance of timely and accurate financial reporting for grant-funded programs. To address the root causes of this finding and strengthen internal controls over grant accounting, the City is implementing the following corrective actions: 1. Dedicated Grant Accounting Oversight The City has established a Senior Accountant position dedicated to grant accounting and compliance. This position will be responsible for overseeing grant-related financial activity, monitoring grant expenditures and revenues, coordinating reimbursement requests, ensuring compliance with grant requirements, and reviewing transactions for proper accounting period recognition. 2. Enhanced Communication with Grant Departments Finance will implement regular communication with departments responsible for managing grants to ensure grant activity is identified and recorded timely. Departments will be expected to notify Finance of significant grant expenditures, reimbursement requests, project milestones, and other events affecting grant accounting. Regular meetings will be scheduled, as appropriate, to discuss grant status, upcoming deadlines, and financial reporting requirements. 3. Routine Grant Reconciliations The Finance Department will perform recurring reconciliations of grant expenditures, revenues, receivables, deferred revenues, and reimbursement requests. These reconciliations will compare the general ledger to grant reimbursement activity and supporting documentation to identify and resolve timing differences before month-end and year-end financial reporting. A comprehensive reconciliation will also be performed during the fiscal year-end closing process to ensure all grant transactions are recorded in the appropriate accounting period. 4. Grant Accounting Training The newly assigned Senior Accountant will receive formal training in governmental grant accounting, Uniform Guidance (2 CFR Part 200), federal and state grant compliance requirements, and applicable GASB reporting standards. In addition, the City will provide ongoing professional development opportunities through external training, webinars, professional organizations, and auditor recommendations to maintain current knowledge of grant accounting requirements. 5. Strengthened Year-End Closing Procedures Grant-specific procedures will be incorporated into the City's year-end closing checklist. Finance will perform a detailed review of outstanding grant expenditures, reimbursement requests, accrued revenues, deferred inflows, and subsequent receipts to verify that grant transactions are recognized in the appropriate fiscal period prior to issuance of the Annual Comprehensive Financial Report (ACFR). Responsible Department: Finance Department Responsible Official: Chief Financial Officer, Finance Director (or equivalent) Senior Accountant - Grants & Special Revenue Implementation Date: Began implementation in FY 2026 and will be fully incorporated into the City's ongoing financial reporting and year-end closing processes.
Audit Finding Reference: 2024-002 Document Policies and Procedures Over Federal Awards Planned Corrective Action: A Uniform Guidance policy and Procedure document has been adopted. Planned Implementation Date of Corrective Action: The policy was effective 03/21/2025. Person Responsible for Correctiv...
Audit Finding Reference: 2024-002 Document Policies and Procedures Over Federal Awards Planned Corrective Action: A Uniform Guidance policy and Procedure document has been adopted. Planned Implementation Date of Corrective Action: The policy was effective 03/21/2025. Person Responsible for Corrective Action: Finance Director
Planned Corrective Action: The Organization has a procurement policy within the Organization’s Internal Controls. The Organization has a procurement process within the Organization’s Operations Manual. However, they are missing key elements required in federal procurement. Both of these will be revi...
Planned Corrective Action: The Organization has a procurement policy within the Organization’s Internal Controls. The Organization has a procurement process within the Organization’s Operations Manual. However, they are missing key elements required in federal procurement. Both of these will be reviewed to ensure they align with CFR standards for federal procurement. Planned Implementation Date of Corrective Action: June 12, 2025 Name of Contact Person: Melinda Lequin, Executive Finance Director
Planned Corrective Action: While the Organization’s existing internal controls address management of invoices and payments, there was no written process within the organization’s internal controls that identified the required documentation, workpapers, review, and approval for federal grant reimburs...
Planned Corrective Action: While the Organization’s existing internal controls address management of invoices and payments, there was no written process within the organization’s internal controls that identified the required documentation, workpapers, review, and approval for federal grant reimbursements. Planned Implementation Date of Corrective Action: October 1, 2025 Name of Contact Person: Melinda Lequin, Executive Finance Director
Planned Corrective Action: There was no written process within the Organization’s Internal Controls that identified the requirements for federal grant management and subrecipient oversight. The draft for these internal controls has been updated to include a subrecipient monitoring / risk assessment ...
Planned Corrective Action: There was no written process within the Organization’s Internal Controls that identified the requirements for federal grant management and subrecipient oversight. The draft for these internal controls has been updated to include a subrecipient monitoring / risk assessment process. Planned Implementation Date of Corrective Action: October 1, 2025 Name of Contact Person: Melinda Lequin, Executive Finance Director
Recommendation: The federal single audit report must be submitted to the FAC in accordance with the deadlines set forth in the federal guidelines.
Recommendation: The federal single audit report must be submitted to the FAC in accordance with the deadlines set forth in the federal guidelines.
Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will work to ensure t...
Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will work to ensure that the management reports are reviewed prior to submission. Name of the contact person responsible for corrective action: Christina Regas, City Administrator Planned completion date for corrective action plan: December 31, 2025.
Management will: Establish grant drawdown submission deadlines, Implement automated compliance calendar reminders and list of important dates for grant period, and Annual Uniform Guidance compliance training.
Management will: Establish grant drawdown submission deadlines, Implement automated compliance calendar reminders and list of important dates for grant period, and Annual Uniform Guidance compliance training.
Management will improve internal processes and controls to include the following: Creation of a subset of general ledger codes for unallowed program costs, Management review of program expenditure requests prior to payment, and Annual Uniform Guidance compliance training.
Management will improve internal processes and controls to include the following: Creation of a subset of general ledger codes for unallowed program costs, Management review of program expenditure requests prior to payment, and Annual Uniform Guidance compliance training.
Management will improve internal processes and controls to include the following: Monthly staff training for documentation retention requirements and policies, Quarterly audits of program expenditure documentation, and Annual Uniform Guidance compliance training.
Management will improve internal processes and controls to include the following: Monthly staff training for documentation retention requirements and policies, Quarterly audits of program expenditure documentation, and Annual Uniform Guidance compliance training.
2024-001 – Data Collection Forms Finding: Our audit procedures noted Champlain Fire District did not certify or submit the required Data Collection Form for the fiscal year ended December 31, 2024 related to the 2024 Single Audit. As of the date of our 2024 audit, the Data Collection Form and accomp...
2024-001 – Data Collection Forms Finding: Our audit procedures noted Champlain Fire District did not certify or submit the required Data Collection Form for the fiscal year ended December 31, 2024 related to the 2024 Single Audit. As of the date of our 2024 audit, the Data Collection Form and accompanying reporting package remain unsubmitted. Recommendation: We recommend that the Fire District implement procedures to ensure the timely preparation, certification, and submission of the annual Data Collection Form and reporting package when federal funds are received. This should include assigning responsibility for tracking deadlines, establishing a completion checklist, and documenting management review prior to submission. Action Taken: Champlain Fire District agrees with the finding and will implement procedures to address the recommendation in 2025.
Finding #2024-002 – Material Weakness – Activities Allowed or Unallowed, Allowable Cost Principles 93.667 Social Services Block Grant - HAP - Bridge Housing and Case Management Payroll Approval Condition During our audit of the Organization for compliance with Uniform Guidance requirements, we noted...
Finding #2024-002 – Material Weakness – Activities Allowed or Unallowed, Allowable Cost Principles 93.667 Social Services Block Grant - HAP - Bridge Housing and Case Management Payroll Approval Condition During our audit of the Organization for compliance with Uniform Guidance requirements, we noted that the client was unable to provide sufficient evidence that the amount being requested for reimbursement was based on actual effort of employees during reimbursement period. In total 40 payroll samples were selected for testing and the lack of support for time spent by employees occurred for all items tested. Recommendation We recommend that Organization establish and enforce formal procedures requiring documented management review and approval of all payroll transactions including review of employees level of effort before they are processed. The review process should be supported by evidence, such as approval signatures, electronic audit trails, or other verifiable records. In addition, management should perform regular reconciliations of payroll to ensure compliance with federal and organizational policies. Management’s Corrective Action Plan Management concurs with this finding. During the fiscal year, the Organization experienced significant turnover within the Accounting and Finance Department, which impacted the consistent execution nd documentation of established payroll review and approval procedures. Although payroll was reviewed prior to processing, management acknowledges that documentation evidencing the review and approval was not consistently maintained to demonstrate compliance with internal control requirements. The Organization recognizes the importance of documented management review as a key internal control over payroll expenditures, particularly for ensuring the appropriate stewardship of federal funds. To address this finding, management has implemented the following corrective actions:  Formalized written payroll processing procedures that require documented review and approval of each payroll register prior to transmission for processing.  Established a standardized payroll approval checklist to document management’s review of payroll changes, employee additions and terminations, pay rate changes, deductions, and payroll totals before each payroll is processed.  Clearly defined segregation of duties between Human Resources, Payroll, and Finance to ensure appropriate authorization and oversight throughout the payroll process.  Implemented a centralized electronic retention process for payroll registers, approval documentation, and supporting reports to ensure records are complete and readily available for audit.  Conducted training with Human Resources and Finance personnel on payroll approval requirements and documentation standards.  Included periodic supervisory reviews of payroll documentation as part of the Finance Department’s internal monitoring process to ensure ongoing compliance. Management believes these corrective actions have strengthened internal controls over payroll processing and approval and will ensure that payroll transactions are consistently reviewed, approved, and appropriately documented prior to payment. Contact Person: Kathy Desmond, President and CEO Anticipated Completion Date: June 30, 2025
Finding #2024-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2024, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect...
Finding #2024-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2024, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Recommendation We recommend that individuals overseeing the accounting and finance function continue to review the Organization's current accounting policies and update existing policies or implement new policies, as necessary, to ensure that accounting records are accurately maintained throughout the year. In addition, we recommend the Organization develop and document formal year-end closing procedures, including detailed closing checklists, assignment of responsibilities, and timelines for the preparation and review of reconciliations, trial balances, and supporting schedules. Monthly and quarterly account reconciliations, as appropriate, should be completed and reviewed timely throughout the year to facilitate an efficient year-end close process and ensure that complete and accurate trial balances and related supporting documentation are prepared and reviewed on a timely basis after year-end. Management’s Corrective Action Plan Management concurs with this finding. The delays in maintaining timely accounting records, completing reconciliations, and preparing year-end financial statements were primarily the result of significant turnover within the Accounting and Finance Department during the fiscal year, combined with the operational demands associated with the merger of HopePHL and Youth Service, Inc. These circumstances created a backlog of transaction processing and account reconciliations that ultimately delayed the preparation of accurate trial balances and required yearend adjustments to ensure compliance with U.S. GAAP. Since the conclusion of the audit period, management has implemented several corrective actions to strengthen the organization’s financial reporting processes and internal controls. These actions include:  Rebuilding and stabilizing the Accounting and Finance Department through the recruitment and retention of qualified personnel.  Establishing defined month-end closing procedures, including assigned responsibilities and timelines for completing reconciliations and reviewing financial activity.  Implementing a monthly close calendar with management oversight to ensure timely completion of accounting tasks and identification of outstanding issues.  Strengthening supervisory review of account reconciliations, journal entries, and financial reporting to improve the accuracy and completeness of accounting records throughout the year.  Monitoring compliance with financial reporting deadlines through regular meetings between Finance leadership and executive management. Management believes these corrective actions have substantially addressed the conditions that led to this finding and will help ensure that accounting records are maintained in accordance with U.S. GAAP, financial statements are prepared on a timely basis, and future reporting requirements, including those under 2 CFR §200.512(a)(1), are met. Contact Person: Kathy Desmond, President and CEO Anticipated Completion Date: June 30, 2025
Finding Number 2024-016 (Repeat 2023-018) Corrective Action Plan Procurement, Suspension and Debarment — AL 93.323 (U.S. Department of Health and Human Services) • Formalize into established written policies and procedures the monitoring of the suspension and debarment status of vendors and contract...
Finding Number 2024-016 (Repeat 2023-018) Corrective Action Plan Procurement, Suspension and Debarment — AL 93.323 (U.S. Department of Health and Human Services) • Formalize into established written policies and procedures the monitoring of the suspension and debarment status of vendors and contractors, designed on the verification methods provided in 2 CFR § 180.300 — checking SAM.gov, collecting a certification, or including a clause in the covered transaction. • Continue performing suspension and debarment verification checks prior to entering into covered transactions as part of the standard procurement checklist, and retain documentary evidence of each check in the procurement file. • Continue to guide and make aware the compliance team and all departments of the requirement, and include it in procurement staff training. • Perform periodic compliance testing of the checklist and the retained evidence, with exceptions reported to management for corrective action. • Pursue resolution of the questioned costs of $509,463 through the audit resolution process with the grantor agency. Management’s position is that the condition is an internal control deficiency and that questioned costs of $0 are warranted under the definition in 2 CFR § 200.1, including paragraph (3)(i), as the entire population comprises allowable transactions and verification against the SAM.gov exclusions list confirmed that no vendor or contractor was suspended, debarred or otherwise excluded. Anticipated Completion Date 9/30/2027 Responsible Person (Contact Details) Mr. Peni Tikoisireli Financial Advisor Email: peni.tikoisireli@dofa.gov.fm Mr. Happyman Makamure Email: happyman.makamure@dofa.gov.fm
Finding Number 2024-015 (Repeat 2023-017) Corrective Action Plan Equipment and Real Property Management — AL 93.323 (U.S. Department of Health and Human Services) • Rebuild the Fixed Asset Register so that it captures the property record data elements required by 2 CFR § 200.313(d)(1) —description, ...
Finding Number 2024-015 (Repeat 2023-017) Corrective Action Plan Equipment and Real Property Management — AL 93.323 (U.S. Department of Health and Human Services) • Rebuild the Fixed Asset Register so that it captures the property record data elements required by 2 CFR § 200.313(d)(1) —description, serial or other identification number, source of funding including the Federal award identification number, title holder, acquisition date and cost, percentage of Federal contribution, and the location, use and condition of each asset, together with any disposition data. • Complete the rebuild well ahead of the FY2025 audit for migration into the fixed asset register module of the new FMIS (FreeBalance), with the funding source of each asset identified. • Conduct physical checks and counts of assets following the rebuild, including locating and confirming the status and condition of the assets identified in this finding, so that adjustments — including deletions and other corrections — are recorded for FY2025 and appropriate action is taken on assets found to be missing, broken, or requiring repair or disposition. • Establish, issue and enforce a written policy with comprehensive procedures covering effective safeguards against loss, damage or theft of property, together with maintenance protocols to keep property in good condition, in line with 2 CFR §§ 200.313(d)(3) and (d)(4). • Continue advice, guidance and training to the Supply Team on the recording, tracking, reconciliation, safeguarding and maintenance of capital assets. • Pursue resolution of the questioned costs of $19,824 through the audit resolution process with the grantor agency upon completion of the physical verification. Anticipated Completion Date 9/30/2027 Responsible Person (Contact Details) Ms. Melynda Irons Acting Assistant Secretary, Treasury Email: melynda.irons@dofa.gov.fm Mr. Peni Tikoisireli Financial Advisor Email: peni.tikoisireli@dofa.gov.fm Mr. Lester Sackryas Supply Manager Email: lester.sackryas@dofa.gov.fm
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