Corrective Action Plans

Finding 499999 (2023-001)

Material Weakness 2023

IL

Reporting § 200.303 § 200.502 § 200.510

Finding 2023-001 – Reporting Assistance Listing Multiple In the immediate term, management will work with the grant consultant to modify the existing report to capture all the costs in the general ledger related to grants. Management will start a quarterly review process of the report with reconcil...

Finding 2023-001 – Reporting Assistance Listing Multiple In the immediate term, management will work with the grant consultant to modify the existing report to capture all the costs in the general ledger related to grants. Management will start a quarterly review process of the report with reconciliation to the grant detail. In addition, prior to the UG audit, management will start a year-end review process to ensure accurate and timely reporting. Responsible Official: Annaliza Villamin, System Director of Accounting, Endeavor Health

View Audit 322924

Finding 499998 (2023-003)

Material Weakness 2023

Wayne Township

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

FINDING 2023-003 (Medicaid Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles) Contact Person Responsible for Corrective Action: Jeb Bardon Contact Phone Number: 317-418-7855 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The...

FINDING 2023-003 (Medicaid Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles) Contact Person Responsible for Corrective Action: Jeb Bardon Contact Phone Number: 317-418-7855 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Federal Cost report beginning 2022 will be done by a new firm. The firm is Blue & Co. They are a wellestablished CPA. The information that is supplied to the CPA firm will be maintained by Wayne Township and will be put the finished cost report. This is for the financial and other metrics that are needed for the report. The cost report will be reviewed for accuracy by the Township Office. The Ambulance payment adjustment is received about two- and one-half years in arrears. This comment would be repeated until we receive the funds for ambulance activity completed in 2023, which will occur in 2026. The payments received by the Medicaid program will be reviewed by the Township Accounting Specialist. After the person agrees it is then inputted into the accounting software and coded to the proper account. Before the Cost report is signed and submitted it will be reviewed by the Township and will ask questions as needed. Anticipated Completion Date: 12/31/24

View Audit 322923

Finding 499960 (2023-009)

Significant Deficiency 2023

Kandiyohi County

MN

Student Financial Aid Allowable Costs / Cost Principles Significant Deficiency § 200.303

SSIS ACTIVITIES ALLOWED/ALLOWABLE COSTS Recommendation: It is recommended that the County implement procedures to document review of disbursements when not able to show an electronic approval in the SSIS system. Explanation of disagreement with audit finding: There is no disagreement with the audit ...

SSIS ACTIVITIES ALLOWED/ALLOWABLE COSTS Recommendation: It is recommended that the County implement procedures to document review of disbursements when not able to show an electronic approval in the SSIS system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will implement procedures to document review for all SSIS disbursements. Name of the contact person responsible for corrective action plan: Karen Anderson, Chief Financial Officer Planned completion date for corrective action plan: December 31, 2024

View Audit 322900

Finding 499959 (2023-008)

Significant Deficiency 2023

Kandiyohi County

MN

Student Financial Aid Reporting Significant Deficiency § 200.303

FOSTER CARE REPORTING Recommendation: It is recommended that the County implement procedures to review the foster care report and retain evidence of the review on file. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to findin...

FOSTER CARE REPORTING Recommendation: It is recommended that the County implement procedures to review the foster care report and retain evidence of the review on file. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will start printing a coversheet for the Fiscal Supervisor to sign and retain physical evidence of the review being done. Name of the contact person responsible for corrective action plan: Karen Anderson, Chief Financial Officer Planned completion date for corrective action plan: December 31, 2024

View Audit 322900

Finding 499955 (2023-005)

Significant Deficiency 2023

Kandiyohi County

MN

Student Financial Aid Eligibility Reporting § 200.303

CASEFILE REVIEW (2022-005) Recommendation: It is recommended the County review case files on a periodic basis throughout the year and document the reviews. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Count...

CASEFILE REVIEW (2022-005) Recommendation: It is recommended the County review case files on a periodic basis throughout the year and document the reviews. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will continue to work at this area and internal controls to achieve the overall goal. Name of the contact person responsible for corrective action plan: Karen Anderson, Chief Financial Officer Planned completion date for corrective action plan: December 31, 2024

View Audit 322900

Finding 499954 (2023-011)

Significant Deficiency 2023

Kandiyohi County

MN

Procurement, Suspension & Debarment Significant Deficiency § 200.303

SLFRF SUSPENSION AND DEBAREMENT Recommendation: It is recommended that the County ensure properly language related to suspension and debarment is included in the contract, or other records are kept on file to support a verification was done. Explanation of disagreement with audit finding: There is n...

SLFRF SUSPENSION AND DEBAREMENT Recommendation: It is recommended that the County ensure properly language related to suspension and debarment is included in the contract, or other records are kept on file to support a verification was done. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will continue to work at this area and internal controls to achieve the overall goal. Name of the contact person responsible for corrective action plan: Karen Anderson, Chief Financial Officer Planned completion date for corrective action plan: December 31, 2024

View Audit 322900

Finding 499953 (2023-007)

Significant Deficiency 2023

Kandiyohi County

MN

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

SLFRF REPORTING Recommendation: It is recommended that the County sign off to indicate review of SLFRF Report. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will continue to work at this area and inter...

SLFRF REPORTING Recommendation: It is recommended that the County sign off to indicate review of SLFRF Report. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will continue to work at this area and internal controls to achieve the overall goal. Name of the contact person responsible for corrective action plan: Karen Anderson, Chief Financial Officer Planned completion date for corrective action plan: December 31, 2024

View Audit 322900

Finding 499952 (2023-004)

Significant Deficiency 2023

Kandiyohi County

MN

Reporting § 200.303

TIMELY REIMBURSEMENT REQUESTS (2022-004) Recommendation: It is recommended the County review internal controls currently in place and design and implement procedures to request reimbursements timelier and to submit requests for reimbursements on at least a quarterly basis. Explanation of disagreeme...

TIMELY REIMBURSEMENT REQUESTS (2022-004) Recommendation: It is recommended the County review internal controls currently in place and design and implement procedures to request reimbursements timelier and to submit requests for reimbursements on at least a quarterly basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will continue to work at this area and internal controls to achieve the overall goal. Name of the contact person responsible for corrective action plan: Karen Anderson, Chief Financial Officer Planned completion date for corrective action plan: December 31, 2024

View Audit 322900

Finding 499948 (2023-003)

Material Weakness 2023

Town of Whitestown

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2023-003 (Auditor Assigned Reference Number) Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Finding: The Town submitted one P&E report during the audit period timely; however, a single employee prepared and submitted the P&E report withou...

FINDING 2023-003 (Auditor Assigned Reference Number) Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Finding: The Town submitted one P&E report during the audit period timely; however, a single employee prepared and submitted the P&E report without a review or oversight process in place to prevent or detect and correct errors. Only one annual report was required to be submitted by the Town. For the report tested, all activity for the reporting period was not included, information submitted was not supported by the Town's records, and the reports were not fairly presented. Contact Person Responsible for Corrective Action: Matt Sumner Contact Phone Number and Email Address: 317-732-4532, msumner@whitestown.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: For applicable reports that are to be submitted for federal grants, we will implement a control/review and ensure the information being reported is correct prior to submission. Anticipated Completion Date: November 1, 2024

View Audit 322895

Finding 499947 (2023-002)

Material Weakness 2023

Town of Whitestown

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303 § 200.317 § 200.318 § 200.327

FINDING 2023-002 (Auditor Assigned Reference Number) Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Procurement and Suspension and Debarment Summary of Finding: The Town's policies related to SLFRF suspension and debarment requirement did not include checking the EPL...

FINDING 2023-002 (Auditor Assigned Reference Number) Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Procurement and Suspension and Debarment Summary of Finding: The Town's policies related to SLFRF suspension and debarment requirement did not include checking the EPLS for vendor suspension and debarment. All three covered transactions tested did not have documentation provided to show the vendor was checked for suspension and debarment. Additionally, the Town did not have a formalized procurement policy outlining its processes and procedures with regards to the procurement of goods and services using federal grant funds. Contact Person Responsible for Corrective Action: Matt Sumner Contact Phone Number and Email Address: 317-732-4532, msumner@whitestown.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will be more diligent in finding out if our grants are federal and what requirements they have for us to follow. We will check applicable vendors for suspension and debarment and implement a control/review over those searches. Anticipated Completion Date: November 1, 2024

View Audit 322895

Finding 499928 (2023-003)

Material Weakness 2023

Chris Properties Graham Circle, Inc.

GA

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

To address the deficiencies identified in the audit regarding allowable costs, the Organization has implemented the following procedures: 1. Procurement • A Procurement Manager was hired to lead the process for sourcing, negotiating terms and conditions, and purchasing items for the organization. • ...

To address the deficiencies identified in the audit regarding allowable costs, the Organization has implemented the following procedures: 1. Procurement • A Procurement Manager was hired to lead the process for sourcing, negotiating terms and conditions, and purchasing items for the organization. • The Procurement Manager is responsible for inspecting goods as necessary and keeping records of all steps in the process. 2. Accounts Payable • Manual check request forms have been implemented; however, the Finance Department is exploring an electronic approval process through a third-party system that interfaces with Sage Intacct. • Invoices are approved by the appropriate program or administrative leader prior to submitting to Accounts Payable. • The appropriate program or administrative leader is responsible for ensuring the correct department, project, and general ledger codes are included on the check request. • The Sr. Accounts Payable Analyst is responsible for ensuring the check requests are completed with the pertinent information, entering invoices that have been approved and uploading the invoices and any additional supporting documentation into the Sage Intacct accounting system as an attachment.

View Audit 322863 Questioned Costs: $1

Finding 499913 (2023-002)

Significant Deficiency 2023

Alabama Nursing Home Association Education Foundation

AL

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.303 § 200.403 § 200.405

Planned Corrective Action: Management contact the facility receiving the overpayment to recoup the funds or ask the facility to provide proof the funds were used for qualifying purposes under the program. If funds are returned, they will be redistributed to other facilities or returned to the Granto...

Planned Corrective Action: Management contact the facility receiving the overpayment to recoup the funds or ask the facility to provide proof the funds were used for qualifying purposes under the program. If funds are returned, they will be redistributed to other facilities or returned to the Grantor no later than December 31, 2024. Person(s) Responsible: John Matson, Executive Director

View Audit 322841 Questioned Costs: $1

Finding 499912 (2023-001)

Significant Deficiency 2023

Alabama Nursing Home Association Education Foundation

AL

Period of Performance Significant Deficiency Matching / Level of Effort / Earmarking § 200.203 § 200.303

Planned Corrective Action: The Foundation followed the express instructions of the State of Alabama, Department of Finance (the “Grantor”) to The Alabama Nursing Home Association Education Foundation (the “Foundation”), which permitted the Foundation to rely upon the certifications of nursing home a...

Planned Corrective Action: The Foundation followed the express instructions of the State of Alabama, Department of Finance (the “Grantor”) to The Alabama Nursing Home Association Education Foundation (the “Foundation”), which permitted the Foundation to rely upon the certifications of nursing home applicants that the applicant had or will have sufficient unmet needs related to qualifying purposes due to the COVID‐19 pandemic to support the receipt of the various allocations of the herein described COVID‐19 Funds. Under the terms of the certification, each applying nursing home further certified that for ten (10) years it would maintain auditable records supporting the unmet need and use of the COVID‐19 Funds. This manner of requiring only a certification for the distribution to health care providers is consistent with the requirements the federal government used when distributing an array of emergency funding (e.g., provider relief funds, rural funds, and infection control funds) to health care providers to meet the unmet needs caused by the COVID‐19 pandemic. The term “COVID‐19 Funds” means those funds the Foundation received from the Grantor with respect to (i) The CARES Act Corona Virus Relief Funds for the period from January 31, 2020, through December 31, 2021, and (ii) America Rescue Plan Act (ARPA) funds for unmet needs for qualifying purposes incurred or to be incurred during the period March 11, 2021, through December 31, 2024. To provide further assurance that the COVID‐19 Funds were properly applied by the nursing home beneficiaries receiving COVID‐19 Funds through the Foundation, the Foundation is working with its outside accountants and legal counsel to develop a look‐back review plan. The framework of the lookback review plan will be for each nursing home beneficiary that received COVID‐19 Funds to submit during the calendar year 2024, a worksheet similar to the period reporting worksheets that are required by the federal Health Resources & Services Administration (HRSA) to justify the COVID‐19 provider relief funds, rural funds, and infection control funds received by health care providers. In addition to these HRSA type worksheets, a more in‐depth examination of a sample of nursing homes will be made by randomly selecting 10 nursing homes from a pool of the 30 nursing homes that received the most COVID‐19 Funds through the Foundation, plus another 10 nursing homes from the remainder of the pool of beneficiary nursing homes. These randomly selected nursing homes will be required to supply actual documentation supporting the COVID‐19 Funds received. This documentation will include invoices, payroll records, revenue journals, and cost reports. Among the provisions of the certifications submitted by each applying nursing home, is an acknowledgement that (i) the nursing home is subject to audit by the applicable State and federal agencies, and the Foundation, (ii) any COVID‐19 Funds received through the Foundation and not properly applied must be refunded, and the nursing home will comply with the requirement that it must maintain for ten (10) years auditable records supporting its use of the COVID‐19 Funds it received through the Foundation. In the event that it is determined that one or more nursing homes were unable to properly apply the COVID‐19 Funds to an unmet need for a qualifying purpose, those COVID‐19 Funds will be recouped and either redistributed to any nursing homes that are able show an unmet need continues to exist using a distribution formula consistent with past distributions of refunded COVID‐19 Funds, or returned to the Grantor. This redistribution or return to the Grantor will occur no later than December 31, 2024. Person(s) Responsible: John Matson, Executive Director

View Audit 322841

Finding 499893 (2023-003)

Significant Deficiency 2023

Lutheran Metropolitan Ministry

OH

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking § 200.303

LMM agrees that 4 out of 40 tested non-payroll costs did not have evidence of approval for payment. While the payments were for contracted services that were received by LMM the written approval for payment was not able to be located. LMM has recently adopted Concur for expense management. With this...

LMM agrees that 4 out of 40 tested non-payroll costs did not have evidence of approval for payment. While the payments were for contracted services that were received by LMM the written approval for payment was not able to be located. LMM has recently adopted Concur for expense management. With this platform all approvals are required electronically and evidence of approval will be able to be submitted.

View Audit 322823

Finding 499888 (2023-002)

Significant Deficiency 2023

Lutheran Metropolitan Ministry

OH

Procurement, Suspension & Debarment § 200.303

LMM will ensure that documentation of the https://sam.gov/content/home Exclusions: Ineligible, Prohibition/Restriction search will be available for review. Each search will be completed as required with the results of the search printed and/or saved electronically for audit review. The report will s...

LMM will ensure that documentation of the https://sam.gov/content/home Exclusions: Ineligible, Prohibition/Restriction search will be available for review. Each search will be completed as required with the results of the search printed and/or saved electronically for audit review. The report will show the entity searched, the result of the search and the date of the search. The CFO will be responsible for maintaining these reports.

View Audit 322823

Finding 499887 (2023-003)

Material Weakness 2023

Noble County

IN

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

FINDING 2023-003 Finding Subject: Suspension and Debarment Summary of Finding: Due to the lack of effective internal controls, Suspension and Debarment requirements were not met during the audit period. Contact Person Responsible for Corrective Action: Shelley Mawhorter, County Auditor Contact Phone...

FINDING 2023-003 Finding Subject: Suspension and Debarment Summary of Finding: Due to the lack of effective internal controls, Suspension and Debarment requirements were not met during the audit period. Contact Person Responsible for Corrective Action: Shelley Mawhorter, County Auditor Contact Phone Number and Email Address: (260) 636-2658; shelley.mawhorter@nobleco.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Noble County Auditor’s office will implement effective internal controls in reference to Suspension and Debarment requirements related to subawards and covered transactions to ensure that one of the three allowable methods of verifying that a vendor is not suspended or debarred is completed prior to entering into the contract or transaction. Anticipated Completion Date: We will have the Corrective Action Plan implemented by December 31, 2024.

View Audit 322810

Finding 499883 (2023-002)

Material Weakness 2023

Montgomery County

MS

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.303

FINDING 2023-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Audit Finding: Material Weakness, Noncompliance Contact Person Responsible for Corrective Action: Mindy Byers Contact Phone Number: 765-364-6401 Contact Email Address: mindy.byers@montgomerycou...

FINDING 2023-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Audit Finding: Material Weakness, Noncompliance Contact Person Responsible for Corrective Action: Mindy Byers Contact Phone Number: 765-364-6401 Contact Email Address: mindy.byers@montgomerycounty.in.gov Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Auditor and her Chief Deputy completed the P&E report together. Moving forward, the Auditor will print the report and have the Chief Deputy sign off on the report prior to submission. Anticipated Completion Date: April 1, 2025. If applicable: Document reason issue will NOT be corrected within six months: The 2024 Project & Expenditure report is not due until April 1, 2025.

View Audit 322791

Finding 499882 (2023-001)

Material Weakness 2023

Montgomery County

MS

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

FINDING 2023-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Mindy Byers Contact Phone Number: 765-364-6401 Contact Email Address: mi...

FINDING 2023-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Mindy Byers Contact Phone Number: 765-364-6401 Contact Email Address: mindy.byers@montgomerycounty.in.gov Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Because the contracts are outside Auditor control, the Auditor has forwarded to county management to request a policy/internal control be created to be put in place. The County has adopted a Suspension and Debarment Policy in August 2023. A certification will be collected from the vendor in the current audit period. In addition, language regarding obtaining a certification that a vendor is not suspended or debarred has been added to the standard language in the contracts. Anticipated Completion Date: December 31, 2024

View Audit 322791

Finding 499861 (2023-003)

Significant Deficiency 2023

City of Reedsburg

WI

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303

Corrective Action Plan: The Utility Commission General Manager or Communications System Supervisor will review the quarterly progress reports prepared by someone else. Section II of the Project Status Report instructions states “Answer each question to the best of your ability.” The work orders do...

Corrective Action Plan: The Utility Commission General Manager or Communications System Supervisor will review the quarterly progress reports prepared by someone else. Section II of the Project Status Report instructions states “Answer each question to the best of your ability.” The work orders do not include all costs related to labor benefits and taxes, and also the electronics and customer premise equipment associated with the projects. These costs are calculated and added in when the project is completed and is being closed out. Estimating these items for the quarterly Project Status Report is providing the project costs spent through the respective quarter to the best of our ability due to the limitations of the work order reporting process. Planned Completion Date for the Corrective Action: On-going Contact Persons Responsible for the Corrective Action Plan: The following Reedsburg Utility staff members are responsible for items outlined above in the Corrective Action Plan: • Brett Schuppner, Reedsburg Utility General Manager • Ken Las, Communications System Supervisor

View Audit 322720

Finding 499853 (2023-003)

Material Weakness 2023

Montana Alliance of Boys & Girls Clubs, Inc.

MT

Subrecipient Monitoring Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303 § 200.332

Individual Responsible for Corrective Action Plan: Alliance Director – Brian Dennis Corrective Action: The Organization will enhance its procedures and internal controls with respect to monitoring over subrecipient activities and reimbursement payments by working with the State of Montana grantor t...

Individual Responsible for Corrective Action Plan: Alliance Director – Brian Dennis Corrective Action: The Organization will enhance its procedures and internal controls with respect to monitoring over subrecipient activities and reimbursement payments by working with the State of Montana grantor to ensure local clubs are using subawards for authorized purposes. Anticipated Completion Date: December 31, 2024

View Audit 322714

Finding 499849 (2023-002)

Significant Deficiency 2023

City of Mishawaka

IN

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Subject: 2023-002 Coronavirus State and Local Fiscal Recovery Funds – Reporting Federal Agency: Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Reporting Audit Finding: Significant Deficiency Rec...

Subject: 2023-002 Coronavirus State and Local Fiscal Recovery Funds – Reporting Federal Agency: Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Reporting Audit Finding: Significant Deficiency Recommendation: The Auditor recommends the City implement procedures to ensure reports are being reviewed by an individual or third-party familiar with the grant prior to their submission, including reconciliation of the report to the general ledger system. Planned Corrective Actions: The City made corrections during calendar year 2023 for a corresponding 2022. This current findings is a result of not being able to make edits in the ARPA reporting portal. A 2022 expenditure was overstated, and this 2023 expenditure was understated by the same amount.

View Audit 322710

Finding 499820 (2023-002)

Material Weakness 2023

Port Authority of New York and New Jersey

NJ

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.303 § 200.313

Findings Related to Federal Awards 2023 002 Equipment and real property management Federal Agency: U.S. Department of Transportation Program Name (ALN): Public Transportation Emergency Relief Program (ALN 20.527) Federal Grant Numbers: NJ-44-X004 Contact Person: Fatima Castellanos, Manager, PAT...

Findings Related to Federal Awards 2023 002 Equipment and real property management Federal Agency: U.S. Department of Transportation Program Name (ALN): Public Transportation Emergency Relief Program (ALN 20.527) Federal Grant Numbers: NJ-44-X004 Contact Person: Fatima Castellanos, Manager, PATH Financial Services, PATH Financial Services Division, 201-216-6459. Corrective Action: The Port Authority acknowledges an internal control deficiency in performing a physical equipment inventory of equipment as required under CFR 200 for the Public Transportation Emergency Relief Program 2013 49 U.S.C. 5324 (Grant award NJ-44-X004 PATH-H). PATH successfully performed a physical inventory of equipment in 2018, the first year it was required. In 2020, the performance of a physical inventory coincided with the COVID-19 pandemic which facilitated the retirement of key personnel in PATH who were responsible for performing the physical inventory of the equipment that was federally funded. This staff transition led to a loss of PATH system expertise necessary to pick up the process previously developed, resulting in the inadvertent lapse in performing the physical inventory in 2020 and 2022. To mitigate this deficiency PATH has performed a physical inventory in 2024 and updated its procedures as they relate to performing the physical inventory of equipment and to have staffing redundancies in place to account for staff turnover. In addition, PATH updated its equipment inventory log to reflect the correct serial numbers on the four pieces of equipment that KPMG identified. Anticipated Completion Date: The entry of all FTA Funded assets for the Public Transportation Emergency Relief Program 2013 49 U.S.C. 5324 will be loaded into the Port Authority Asset Management System (PAMS) by December 31, 2024. Entry of these assets will contain details pertaining to the categories (Asset Name, Supplier, PO#, Cost, Grant #, FTA Share, Date Received, Property Number/Serial Number, Useful Life, Date of Last Inventory, Observed Location, Condition, Current Use, Holder of Asset, Disposition Date) required under CFR 200 and updated on a biennial basis. It is important to note, however, that due to PATH’s nature as an operating railroad, equipment is moved frequently across the system as required. Therefore, the location of the equipment will only be accurate as of the date the inventory is performed.

View Audit 322679

Finding 499801 (2023-002)

Material Weakness 2023

Terre Haute Regional Airport Authority

IN

Reporting § 200.303

FINDING 2023-002 Finding Subject: Airport Improvement Program – Reporting Summary of Finding: Noncompliance. The airport was unable to provide the SF-425: Federal Financial Report, a required report, for the AIP54 grant for audit. Contact Person Responsible for Corrective Action: Kelsey Veatch Conta...

FINDING 2023-002 Finding Subject: Airport Improvement Program – Reporting Summary of Finding: Noncompliance. The airport was unable to provide the SF-425: Federal Financial Report, a required report, for the AIP54 grant for audit. Contact Person Responsible for Corrective Action: Kelsey Veatch Contact Phone Number and Email Address: 812-877-2542 kveatch@huf.com Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The airport has hired a new Director of Operations and a new on-call airport consultant/engineer which both positions will be properly advised on how to complete and retain all documents related to Airport Improvement Program projects. For this process the on-call airport consultant/engineer will prepare the SF-425 and will submit it to the Executive Director and the Director of Operations for their review and signature of approval. The Executive Director and the Director of Operations will then provide their signed approval to the on-call airport consultant/engineer. Upon receiving the signed approval, the on-call airport consultant/engineer will submit the completed SF-425 to the FAA. Once the submission is made, the oncall airport consultant/engineer will provide documented evidence to the airport showing the submission was made. In summary, the on-call airport consultant/engineer will be responsible for preparing, reporting and submitting the SF-425 upon airport staff’s approval. The Executive Director and the Director of Operations will be responsible for reviewing and providing approval of the SF-425 prior to the final submission, verifying the submission was completed, and maintaining records of the submission in the appropriate AIP binder. Anticipated Completion Date: Effective immediately – 9/24/2024

View Audit 322664

Finding 499800 (2023-001)

Material Weakness 2023

Terre Haute Regional Airport Authority

IN

Equipment & Real Property Management Material Weakness Matching / Level of Effort / Earmarking § 200.303 § 200.313

FINDING 2023-001 Finding Subject: Airport Improvement Program – Equipment & Real Property Management Summary of Finding: Material Weakness, Other Matters. The airport does not have a detailed listing of capital assets. Contact Person Responsible for Corrective Action: Kelsey Veatch Contact Phone Num...

FINDING 2023-001 Finding Subject: Airport Improvement Program – Equipment & Real Property Management Summary of Finding: Material Weakness, Other Matters. The airport does not have a detailed listing of capital assets. Contact Person Responsible for Corrective Action: Kelsey Veatch Contact Phone Number and Email Address: 812-877-2542 kveatch@huf.com Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The airport currently has a capital asset listing, but it does not contain all the information that State Board of Accounts (SBOA) would like to have provided in the listing. SBOA has offered to provide a capital asset template that they recommend units use. Using the provided template the airport will work to update their current capital asset listing. The HR/Business Relations Manager will take the lead on ensuring the capital asset listing is updated to the new format and keeping the listing current and accurate. Anticipated Completion Date: Upon receiving the template from SBOA, the airport will work to have the capital asset listing updated to the new format by Dec 31, 2024.

View Audit 322664

Finding 499795 (2023-005)

Material Weakness 2023

Town of Upland

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2023-005 Finding Subject: COVID-19 Coronavirus State and Local Fiscal Recovery Funds- Reporting Summary of Finding: Material Weakness Contact Person Responsible for Corrective Action: Mary Fletcher Contact Phone Number and Email Address: (765) 998-7439, mfletcher@uplandindiana.com Views of R...

FINDING 2023-005 Finding Subject: COVID-19 Coronavirus State and Local Fiscal Recovery Funds- Reporting Summary of Finding: Material Weakness Contact Person Responsible for Corrective Action: Mary Fletcher Contact Phone Number and Email Address: (765) 998-7439, mfletcher@uplandindiana.com Views of Responsible Officials: We concur with the finding Explanation and Reasons for Disagreement: Description of Corrective Action Plan: The Town of Upland will implement an oversight system to review the P&E Report before submission to the Federal Government. Anticipated Completion Date: Upon the submission of our next report due April 30, 2025

View Audit 322658

Corrective Action Plans

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