Corrective Action Plans

Finding 529779 (2024-004)

Material Weakness 2024

MS

Questioned Costs Eligibility Material Weakness § 200.302 § 200.303

Corrective Action: Before any expenditure is obligated, all revisions/amendments will be approved in MCAPS mst. The business Manager, Federal Programs Director, and Superintendentwill ensure MDE's approval is tangible before any obligations. We will implement a tool that allows this process to be me...

Corrective Action: Before any expenditure is obligated, all revisions/amendments will be approved in MCAPS mst. The business Manager, Federal Programs Director, and Superintendentwill ensure MDE's approval is tangible before any obligations. We will implement a tool that allows this process to be measured daily. Responsible Parties: Avery Johnson, Business Manager Robert Sanders, Superintendent Corrective Action Start Date: February 14, 2025

View Audit 347778 Questioned Costs: $1

Finding 529774 (2024-001)

Significant Deficiency 2024

Jewish Family Service of Colorado, Inc.

CO

Allowable Costs / Cost Principles Cash Management Period of Performance § 200.303 § 200.305

Condition: There was no evidence of a system of internal control over the cash management requirements, including a written policy related to reimbursement of funds on a per-refugee basis. In addition, it was noted that reimbursement was requested prior to incurring expenses on a per-refugee basis....

Condition: There was no evidence of a system of internal control over the cash management requirements, including a written policy related to reimbursement of funds on a per-refugee basis. In addition, it was noted that reimbursement was requested prior to incurring expenses on a per-refugee basis. There were also refugee costs coded incorrectly within the general ledger. Planned Corrective Action: Financial policies will be updated to include cash management requirements to ensure expenditures are incurred, including any required per client expenditures, prior to reimbursement requests. Subsequent to year end a new process was put in place to compare the individual refugee ledgers to the reimbursement request to ensure no expenditures were requested in advance and that individual refugee costs were coded to the correct general ledger account. Contact person responsible for corrective action: Linda P. Foster, CEO Anticipated Completion Date: Refugee ledger reconciliation process completed 2/1/2025 Policy approval and implementation to be completed by 5/1/2025

View Audit 347774

Finding 529772 (2024-001)

Significant Deficiency 2024

Monument Health, Inc.

SD

Questioned Costs Allowable Costs / Cost Principles § 200.303

Federal Agency Name: Department of Homeland Security Federal Financial Assistance Listing #97.036 Program Name: COVID-19 Disaster Grants - Public Assistance Finding Summary: Audit testing identified eleven instances where contract labor costs were over claimed under the program due to a calculation...

Federal Agency Name: Department of Homeland Security Federal Financial Assistance Listing #97.036 Program Name: COVID-19 Disaster Grants - Public Assistance Finding Summary: Audit testing identified eleven instances where contract labor costs were over claimed under the program due to a calculation error. Monument Health's methodology for identifying contract labor attributable to COVID to be based upon identifying total contact labor and multiplying by the percentage of COVID patient days as a percentage of total patient days. The methodology also identified certain cost centers were to be excluded from the calculation, including behavioral health and med/surg nursing. Based upon review of management's allocation percentage, it was noted the behavioral health and med/surg nursing COVID patient days were included within the total COVID patient days; therefore, a higher percentage of COVID patient days to total patient days was calculated. The calculation percentage was then utilized to calculate contract labor attributable to COVID for contract labor costs identified from July 2, 2022 through May 11, 2023. Responsible Individuals: Austin Willuweit, Chief Financial Officer Jen Schmaltz, Vice President of Finance Corrective Action Plan: Monument Health will review future calculations for consistency and accuracy. Anticipated Completion Date: June 30, 2025

View Audit 347766 Questioned Costs: $1

Finding 529746 (2024-004)

Significant Deficiency 2024

University of Illinois

IL

Procurement, Suspension & Debarment § 200.303 § 200.318 § 200.320

Finding 2024-004 Internal Controls over Procurement Plan: University will work with information technology to enhance the eprocurement system to ensure appropriate documentation support is captured when a user selects the method for a non-competitive procurement. Expected Implementation Date: Decemb...

Finding 2024-004 Internal Controls over Procurement Plan: University will work with information technology to enhance the eprocurement system to ensure appropriate documentation support is captured when a user selects the method for a non-competitive procurement. Expected Implementation Date: December 2025 Contact: Aaron Rosenthal, Assistant Vice Chancellor Purchasing and Contract Management University of Illinois Chicago Aaronr1@uillinois.edu 312-996-8074 Bradley Henson, Director of Purchasing Purchasing and Contract Management University of Illinois Urbana-Champaign Bhenson4@uillinois.edu 217-300-2459

View Audit 347709

Finding 529743 (2024-003)

Significant Deficiency 2024

University of Illinois

IL

Matching / Level of Effort / Earmarking Student Financial Aid Reporting § 200.303

Finding 2024-003 Error in Reporting for NSLDS Plan: Administrative Information Technology Solutions (AITS) identified an Ellucian defect causing a misalignment between the program begin date and enrollment status dates. AITS is collaborating with Ellucian to report any ongoing issues since the Octob...

Finding 2024-003 Error in Reporting for NSLDS Plan: Administrative Information Technology Solutions (AITS) identified an Ellucian defect causing a misalignment between the program begin date and enrollment status dates. AITS is collaborating with Ellucian to report any ongoing issues since the October 2024 resolution, and drive the resolution of defects, if necessary. Expected Implementation Date: October 2024 Contact: Chris Sayre Registrar University of Illinois Chicago Csayre2@uic.edu 312-996-3077

View Audit 347709

Finding 529739 (2024-002)

Significant Deficiency 2024

University of Illinois

IL

Subrecipient Monitoring Cash Management Matching / Level of Effort / Earmarking § 200.303 § 200.305

Finding 2024-002 Cash Management – Timeliness of Subrecipient Payments Plan: UIC - The University of Illinois Chicago will provide additional training and guidance to research administrators on the requirement of timely payments to subrecipients. UIUC – Sponsored Program Administration continues the...

Finding 2024-002 Cash Management – Timeliness of Subrecipient Payments Plan: UIC - The University of Illinois Chicago will provide additional training and guidance to research administrators on the requirement of timely payments to subrecipients. UIUC – Sponsored Program Administration continues the development of a subaward invoice automation platform to create and capture efficiencies toward the 30-day payment requirement. In tandem, there is continual review of strategies to address the current manual, multi-layered approval and payment process. Expected Implementation Date: UIC - March 2025 UIUC - December 2025 Contact: Katrina Lopez, Assistant Director Office of Sponsored Programs (OSP) University of Illinois Chicago klopez3@uic.edu 312-996-3782 Karen Thomas, Director Post-award Sponsored Program Administration University of Illinois Urbana-Champaign Kthomas2@illinois.edu 217-265-4096

View Audit 347709

Finding 529730 (2024-003)

Material Weakness 2024

Mooresville Consolidated School Corporation

IN

Special Tests & Provisions Subrecipient Monitoring Material Weakness § 200.303

Context: For the three projects sampled for Davis-Bacon requirements, the School Corporation did not obtain the weekly payroll reports certifications from the companies that performed renovations on the School Corporation. Therefore, no review was performed to ensure that pay rates complied with th...

Context: For the three projects sampled for Davis-Bacon requirements, the School Corporation did not obtain the weekly payroll reports certifications from the companies that performed renovations on the School Corporation. Therefore, no review was performed to ensure that pay rates complied with the federal wage rate requirements. Additionally, the School Corporation did not have contracts with the companies that included the clause for the federal wage rate requirements. The total amount disbursed and reported on the SEFA during the audit period is $648,235 and the labor portion was not determinable by the School Corporation. Contact Person Responsible for Corrective Action: Patrick Biggerstaff, Assistant Superintendent Contact Phone Number: (317) 831-0950 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: When utilizing federal funding for capital projects, MCSC will require and retain evidence that contractors, subcontractors, and other relevant agents comply with the federal wage rate requirements set forth in the Davis-Bacon Act. Anticipated Completion Date: April 1, 2025

View Audit 347667

Finding 529728 (2024-002)

Material Weakness 2024

Mooresville Consolidated School Corporation

IN

Procurement, Suspension & Debarment § 200.303 § 200.318 § 200.320

Context: For the three small purchase method procurements sampled for testing, we noted that the School Corporation, did not obtain quotes from an adequate number of qualified sources. The total amount disbursed for the sample items was $114,123 in FY23 and $13,404 in FY24 for contracted rehabilitat...

Context: For the three small purchase method procurements sampled for testing, we noted that the School Corporation, did not obtain quotes from an adequate number of qualified sources. The total amount disbursed for the sample items was $114,123 in FY23 and $13,404 in FY24 for contracted rehabilitation therapy and speech pathology services. The School Corporation did properly perform a suspension and debarment checks on the sample vendors. Contact Person Responsible for Corrective Action: Patrick Biggerstaff, Assistant Superintendent Contact Phone Number: (317) 831-0950 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Three quotes will be obtained, according to local policy (po6320) as well as state and federal guidance, when relevant purchasing and cost thresholds are reached. Anticipated Completion Date: April 1, 2025

View Audit 347667

Finding 529720 (2024-002)

Significant Deficiency 2024

Public Education & Business Coalition

CO

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

On or before June 30, 2025, PEBC will implement controls that properly support the distribution of student educator teststipends in accordance with the Uniform Guidance. Controls shall include: • Standardized Documentation: Finance & Accounting Department will work with the Residency Department to d...

On or before June 30, 2025, PEBC will implement controls that properly support the distribution of student educator teststipends in accordance with the Uniform Guidance. Controls shall include: • Standardized Documentation: Finance & Accounting Department will work with the Residency Department to develop and maintain a clear inventory of required documents for each stipend award. • Resident File Management: Residency Department will establish a consistent and complete portfolio of documents for each student educator, including applications, agreements, award letters, diligence documents, and relevant correspondence. • Manager Review & Approval: Residency managers will review and attest to the completeness of each Resident File with documented approvals. • Disbursement Authorization: Finance & Accounting Department will work with the Residency Department to implement a formalized process to formalize and document requests to the Finance and Accounting Department for fund disbursement, including documentation of Residency Department manager approval. • Monthly Reconciliation: Finance & Accounting Department and Residency Department will conduct monthly reconciliations of all stipend disbursements to ensure accuracy and completeness. • Independent Oversight: Require approval of monthly reconciliations by an authorized manager who is not responsible for either approving, processing, or reconciling disbursements, or any combination thereof.

View Audit 347620

Finding 529716 (2024-003)

Material Weakness 2024

Vincennes Community School Corporation

IN

Special Tests & Provisions Subrecipient Monitoring Material Weakness § 200.303

Information on the federal program: Subject: Education Stabilization Fund - Special Tests and Provisions - Wage Rate Requirements Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Yea...

Information on the federal program: Subject: Education Stabilization Fund - Special Tests and Provisions - Wage Rate Requirements Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Special Tests and Provisions - Wage Rate Requirements Audit Findings: Material Weakness, Material Noncompliance, Qualified Opinion Condition and Context: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Special Tests and Provisions - Wage Rate Requirements compliance requirements. The School Corporation had projects for construction of new facilities including an early learning center and improvements to sports facilities which was funded with ESSER II (84.425D) and ESSER Ill (84.425U) grant awards. In our sample of three vendors, the School Corporation did not include Davis-Bacon wage rate requirements in the vendor contract, and therefore the vendor did not include the verbiage within their subcontractor agreements. Also, the School Corporation did not obtain the weekly payroll reports certifications from the construction vendor to monitor compliance with Davis-Bacon wage rate requirements. Therefore, no review was performed to ensure that pay rates complied with the federal wage rate requirements during the audit period. The total project costs disbursed during the audit period in our sample was $3,681,455 which includes material and labor costs. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Vincennes Community School Corporation will comply with the Davis-Bacon wage rate requirements in all future projects using federal funds. Responsible Party for Corrective Action: Michele Fleck, Treasurer Timeline for Completion: Effective immediately.

View Audit 347612

Finding 529712 (2024-002)

Material Weakness 2024

Vincennes Community School Corporation

IN

Subrecipient Monitoring Material Weakness Reporting § 200.302 § 200.303 § 200.328

Information on the federal program: Subject: Education Stabilization Fund (ESSER) - Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Num...

Information on the federal program: Subject: Education Stabilization Fund (ESSER) - Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Condition and Context: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Reporting compliance requirements. The School Corporation was required to submit Annual Data Reports to the Indiana Department of Education (IDOE) during the audit period to meet federal reporting requirements for ESSER grant awards. We noted that the ESSER I amount reported on the Year 3 report ($86,004) did not agree to the underlying expenditure records ($196,436) for the period of July 1, 2021 through June 30, 2022. We also noted that the ESSER II and ESSER Ill amounts reported on the Year 3 report ($0 and $1,684,755, respectively) did not agree to the underlying expenditure records ($1,391,963 and $4,330,649, respectively), for the period of July 1, 2022 through June 30, 2023. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Vincennes School Corporation will include the Federal Programs Coordinator when preparing any annual reports to confirm accuracy of the reporting. Responsible Party for Corrective Action: Michele Fleck, Treasurer Timeline for Completion: Effective immediately.

View Audit 347612

Finding 529710 (2024-001)

Significant Deficiency 2024

City of Whittier

CA

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

Program/Cluster: CDBG – Entitlement/Special Purpose Grants Cluster Federal Financial Assistance Listing Number: 14.218 Federal Grantor: U.S. Department of Housing and Urban Development Award Year: 2023-24 Grant Award Number: B-23-MC-06-0533 Compliance Requirement: Reporting Management’s Response: We...

Program/Cluster: CDBG – Entitlement/Special Purpose Grants Cluster Federal Financial Assistance Listing Number: 14.218 Federal Grantor: U.S. Department of Housing and Urban Development Award Year: 2023-24 Grant Award Number: B-23-MC-06-0533 Compliance Requirement: Reporting Management’s Response: We concur. Views of Responsible Officials and Corrective Action: As stated in the condition, the City has subsequently submitted the report after the due date. The City has implemented policies and procedures to ensure timely submission to the Federal Funding Accountability and Transparent Act Subaward Reporting System (FSRS). Name of Responsible Person: Community Development Department, Werner Abrego, Senior Economic Development and Housing Analyst Projected Implementation Date: Implemented.

View Audit 347601

Finding 529683 (2024-001)

Material Weakness 2024

City of Taylor, Michigan

MI

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

Condition: The community development manager’s payroll expenses charged to the grant were supported by time records, but these records were not reviewed or approved by another individual. Planned Corrective Action: The community development manager will submit his/her payroll time records to either ...

Condition: The community development manager’s payroll expenses charged to the grant were supported by time records, but these records were not reviewed or approved by another individual. Planned Corrective Action: The community development manager will submit his/her payroll time records to either the outside consultant or Chief of Staff who will review and approve accordingly before being charged to the grant. Contact person responsible for corrective action: Joan Hennessey (Outside Consultant) or Dan Bzura (Chief of Staff). Anticipated Completion Date: 3/12/2025

View Audit 347590 Questioned Costs: $1

Finding 529681 (2024-002)

Material Weakness 2024

Better Waterworks, Inc.

LA

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

Management Response: Management acknowledges that federal grant proceeds were not posted to the designated grant revenue account and were instead recorded as water sales. However, a grant revenue account was already established for these funds, and this was an error in posting rather than a lack of...

Management Response: Management acknowledges that federal grant proceeds were not posted to the designated grant revenue account and were instead recorded as water sales. However, a grant revenue account was already established for these funds, and this was an error in posting rather than a lack of proper account setup. The grant in question has now been fully expended and closed, so there will be no further transactions related to this specific award. Corrective Action Plan: Proper Posting Procedures – Going forward, any future federal grant funds will be recorded in the designated grant revenue account to ensure proper classification. Self-Review Process – The individual responsible for accounting will implement a self-review process to verify that all grant-related transactions are correctly posted. Person Responsible for Corrective Action: Becky Pullin, CFO Northeast Louisiana Utilities Anticipated Completion Date: March 31, 2025

View Audit 347582

Finding 529572 (2024-003)

Material Weakness 2024

Metropolitan School District of Warren County

IN

Procurement, Suspension & Debarment § 200.1 § 200.303 § 200.317 § 200.318 § 200.319

FINDING 2024-003 Finding Subject: Childhood Nutrition Cluster – Procurement and Suspension and Debarment Contact Person Responsible for Corrective Action: Ralph Shrader, Superintendent Contact Phone Number and Email Address: (765) 762-3364 / rshrader@msdwarco.k12.in.us Views of Responsible Officials...

FINDING 2024-003 Finding Subject: Childhood Nutrition Cluster – Procurement and Suspension and Debarment Contact Person Responsible for Corrective Action: Ralph Shrader, Superintendent Contact Phone Number and Email Address: (765) 762-3364 / rshrader@msdwarco.k12.in.us Views of Responsible Officials: Option 1: We concur with the finding Description of Corrective Action Plan: We will obtain quotes for any purchases that qualify under the small purchases requirement Any director responsible for corporation contracts, will be responsible for checking Sam.gov to ensure the vendor is not on the suspension and disbarment list. A secondary individual will verify the findings. In addition, the micropurchase threshold will be raised to $50,000. Anticipated Completion Date: Effective Immediately

View Audit 347535

Finding 529571 (2024-002)

Material Weakness 2024

Metropolitan School District of Warren County

IN

School Nutrition Programs Eligibility Matching / Level of Effort / Earmarking § 200.303

FINDING 2024-002 Finding Subject: Child Nutrition Cluster - Eligibility Contact Persons Responsible for Corrective Action: Lacey Sturgeon, Food Service Director & Melissa Bell, Assistant Food Service Director Contact Phone Number and Email Addresses: (765) 893-4445 / lsturgeon@msdwarco.k12.in.us & m...

FINDING 2024-002 Finding Subject: Child Nutrition Cluster - Eligibility Contact Persons Responsible for Corrective Action: Lacey Sturgeon, Food Service Director & Melissa Bell, Assistant Food Service Director Contact Phone Number and Email Addresses: (765) 893-4445 / lsturgeon@msdwarco.k12.in.us & mbell@msdwarco.k12.in.us Views of Responsible Officials: Option 1: We concur with the findings Description of Corrective Action Plan: Stronger internal controls are needed in regards to verification of Direct Certifications. We plan to make sure once the certifications are entered that the Food Service Director will check the work of the Assistant Food Service Director and show her approval by signing and dating each final report. Anticipated Completion Date: Effective Immediately

View Audit 347535

Finding 529515 (2024-009)

Material Weakness 2024

Cannelton City School Corporation

IN

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

FINDING 2024-009 Finding Subject: Covid-19-Education Stabilization Fund-Special Test and Provisions-Wage Rage Requirements Summary of Finding: Construction contracts in excess of $2000 financed by federal assistance funds must pay prevailing wage rates by the Department of Labor. Additionally, the S...

FINDING 2024-009 Finding Subject: Covid-19-Education Stabilization Fund-Special Test and Provisions-Wage Rage Requirements Summary of Finding: Construction contracts in excess of $2000 financed by federal assistance funds must pay prevailing wage rates by the Department of Labor. Additionally, the School corporation did not properly implement a process to identify and assess internal and external risks, or monitor internal control activities to ensure they were operating effectively. Contact Person Responsible for Corrective Action: Melissa Embry Contact Phone Number and Email Address: 812-547-2637 melissa.embry@cannelton.k12.in.us Views of Responsible Officials: We concur with the finding. However, this is not a new finding. This is continued from the previous audit period under the same contract. No new contracts were made in the current audit period. Description of Corrective Action Plan: The Superintendent will make sure to let the contractors know when we are using federal monies so that they include the payment of prevailing wage in the contract. Anticipated Completion Date: The noncompliance will be addressed immediately. The additional controls will be implemented by August 2025.

View Audit 347515

Finding 529508 (2024-008)

Material Weakness 2024

Cannelton City School Corporation

IN

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

FINDING 2024-008 Finding Subject: Covid-19-Education Stabilization Fund-Reporting Summary of Finding: Not all reports filed by the school corporation during the audit period were properly supported by the records of the school corporation. Additionally, the School corporation did not properly implem...

FINDING 2024-008 Finding Subject: Covid-19-Education Stabilization Fund-Reporting Summary of Finding: Not all reports filed by the school corporation during the audit period were properly supported by the records of the school corporation. Additionally, the School corporation did not properly implement a process to identify and assess internal and external risks, or monitor internal control activities to ensure they were operating effectively. Contact Person Responsible for Corrective Action: Melissa Embry Contact Phone Number and Email Address: 812-547-2637 melissa.embry@cannelton.k12.in.us Views of Responsible Officials: We concur with the finding. However, these data collections reports are not user-friendly and we receive very little guidance on how to do them. One email that we received from the IDOE stated it was for the ESSER III year 3, however the attachment was named year 4 with the year 3 dates listed on the spreadsheet. The due date that it showed for this report was July 24, 2025 on the subject of the memo, but said July 24, 2024 within the body of the memo. Description of Corrective Action Plan: In the future all reports will be done by the Corporation Treasurer and the Grant Specialist and signed off on by the Superintendent. Anticipated Completion Date: The noncompliance will be addressed immediately. The additional controls will be implemented by August 2025.

View Audit 347515

Finding 529504 (2024-007)

Material Weakness 2024

Cannelton City School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.302 § 200.303 § 200.403

FINDING 2024-007 Finding Subject: Covid-19-Education Stabilization Fund-Allowable Costs/Cost Principles Summary of Finding: This finding claims federal awards were not in compliance with the terms and conditions as well as the allowable cost compliance requirements. Additionally, the School corporat...

FINDING 2024-007 Finding Subject: Covid-19-Education Stabilization Fund-Allowable Costs/Cost Principles Summary of Finding: This finding claims federal awards were not in compliance with the terms and conditions as well as the allowable cost compliance requirements. Additionally, the School corporation did not properly implement a process to identify and assess internal and external risks, or monitor internal control activities to ensure they were operating effectively. Contact Person Responsible for Corrective Action: Melissa Embry Contact Phone Number and Email Address: 812-547-2637 melissa.embry@cannelton.k12.in.us Views of Responsible Officials: We concur with the finding. The reason we spent the money the way we did is because the IDOE approved our budget. We spent exactly as it was approved not knowing that we could not spend it on items or services that were being paid for prior to the grant’s application. If it was not supposed to be spent this way, then IDOE should have never approved it. To prevent noncompliance going forward, the school’s grant administrator will review disbursements of the program to ensure they were not spent on items or services that were in place prior to the grant’s application. Description of Corrective Action Plan: To prevent noncompliance going forward, the school’s grant administrator will review disbursements of the program to ensure they were not spent on items or services that were in place prior to the grant’s application. Cannelton management will establish a proper system of internal controls including policies and procedures related to risk assessment and monitoring activities within the federal program. Anticipated Completion Date: The noncompliance will be addressed immediately. The additional controls will be implemented by August 2025.

View Audit 347515 Questioned Costs: $1

Finding 529497 (2024-006)

Material Weakness 2024

Cannelton City School Corporation

IN

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

FINDING 2024-006 Finding Subject: Covid-19-Education Stabilization Fund - Internal Controls Summary of Finding: The School corporation did not properly implement a process to identify and assess internal and external risks, or monitor internal controls to ensure they were operating effectively. Cont...

FINDING 2024-006 Finding Subject: Covid-19-Education Stabilization Fund - Internal Controls Summary of Finding: The School corporation did not properly implement a process to identify and assess internal and external risks, or monitor internal controls to ensure they were operating effectively. Contact Person Responsible for Corrective Action: Melissa Embry Contact Phone Number and Email Address: 812-547-2637 melissa.embry@cannelton.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Cannelton management will establish a proper system of internal controls including policies and procedures related to risk assessment and monitoring activities within the federal program. All of the Covid-19 Education Stabilization Funds have been expended at this time. Anticipated Completion Date: August 2025

View Audit 347515

Finding 529492 (2024-005)

Material Weakness 2024

Cannelton City School Corporation

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.1 § 200.303 § 200.317 § 200.318 § 200.319

FINDING 2024-005 Finding Subject: Child Nutrition Cluster-Procurement and Suspension and Debarment Summary of Finding: The school corporation made purchases from vendors without using the procurement method and verifying that the vendor was not suspended or debarred. The School corporation did not p...

FINDING 2024-005 Finding Subject: Child Nutrition Cluster-Procurement and Suspension and Debarment Summary of Finding: The school corporation made purchases from vendors without using the procurement method and verifying that the vendor was not suspended or debarred. The School corporation did not properly implement a process to identify and assess internal and external risks, or monitor internal control activities to ensure they were operating effectively. Contact Person Responsible for Corrective Action: Melissa Embry Contact Phone Number and Email Address: 812-547-2637 melissa.embry@cannelton.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will follow all correct procurement plans set forth in the future. We will also verify with each vendor and have a form filled out stating that they are not suspended or debarred. Cannelton management will establish a proper system of internal controls including policies and procedures related to risk assessment and monitoring activities within the federal program. Anticipated Completion Date: The School will ensure proper procurement methods are followed and that vendors are properly checked for suspension and debarment by December 2025. The additional controls will be implemented by August 2025.

View Audit 347515

Finding 529487 (2024-004)

Material Weakness 2024

Cannelton City School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.334 § 200.403

FINDING 2024-004 Finding Subject: Child Nutrition Cluster-Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: Payments made based on statements or no supporting documentation. The School corporation did not properly implement a process to identify and assess internal...

FINDING 2024-004 Finding Subject: Child Nutrition Cluster-Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: Payments made based on statements or no supporting documentation. The School corporation did not properly implement a process to identify and assess internal and external risks, or monitor internal control activities to ensure they were operating effectively. Contact Person Responsible for Corrective Action: Melissa Embry Contact Phone Number and Email Address: 812-547-2637 melissa.embry@cannelton.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Invoices are already being given to the Corporation Treasurer monthly and are being attached to each Accounts Payable Voucher to show exactly what is being paid for. Cannelton management will establish a proper system of internal controls including policies and procedures related to risk assessment and monitoring activities within the federal program. Anticipated Completion Date: The noncompliance was corrected as of January 2025. The additional controls will be implemented by August 2025.

View Audit 347515 Questioned Costs: $1

Finding 529482 (2024-003)

Material Weakness 2024

Cannelton City School Corporation

IN

Subrecipient Monitoring Internal Control / Segregation of Duties School Nutrition Programs § 200.303

FINDING 2024-003 Finding Subject: Child Nutrition Cluster – Internal Controls Summary of Finding: There was a lack of internal controls. Additionally, the School corporation did not properly implement a process to identify and assess internal and external risks, or monitor internal control activitie...

FINDING 2024-003 Finding Subject: Child Nutrition Cluster – Internal Controls Summary of Finding: There was a lack of internal controls. Additionally, the School corporation did not properly implement a process to identify and assess internal and external risks, or monitor internal control activities to ensure they were operating effectively. Contact Person Responsible for Corrective Action: Melissa Embry Contact Phone Number and Email Address: 812-547-2637 melissa.embry@cannelton.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The food service director now gets all the reports and appropriate supporting documentation, including receipts and disbursements reports, together and goes over it with the high school secretary/deputy treasurer and is then submitted by the secretary/deputy treasurer, printed off and given to the corporation treasurer. The corporation treasurer has a copy of the submission and compares that to what is deposited. All claims have always been approved by the School Board. Cannelton management will establish a proper system of internal controls including policies and procedures related to risk assessment and monitoring activities within the federal program. Anticipated Completion Date: August 2025

View Audit 347515

Finding 529466 (2024-004)

Material Weakness 2024

Caston School Corporation

IN

Subrecipient Monitoring Material Weakness Reporting § 200.302 § 200.303 § 200.328

Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Num...

Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Reporting compliance requirements. Context: The School Corporation was required to submit Annual Data Reports to the Indiana Department of Education (IDOE) during the audit period to meet federal reporting requirements for ESSER grant awards. We noted that the ESSER II and ESSER III amounts reported on the Year 3 report ($288,565 and $115,716, respectively) did not agree to the underlying expenditure records ($139,081 and $88,437, respectively) for the period of July 1, 2022 through June 30, 2023. Corrective Action Plan: The School Corporation will implement a system of internal controls to ensure the amounts reported on the annual data reports agree to the underlying expenditure detail in the accounting system. Person responsible for implementation and projected implementation date: The Treasurer and the Superintendent will be responsible for implementing the corrective action plan, which will start with the next submission of the annual data report.

View Audit 347466

Finding 529463 (2024-003)

Material Weakness 2024

Caston School Corporation

IN

Procurement, Suspension & Debarment School Nutrition Programs § 200.303

Subject: Child Nutrition Cluster - Procurement and Suspension and Debarment Federal Agency: Department of Agriculture Federal Programs: School Breakfast Program, National School Lunch Program AL Numbers: 10.553, 10.555 Federal Award Numbers and Years: FY2023, FY2024 Pass-Through Entity: Indiana Depa...

Subject: Child Nutrition Cluster - Procurement and Suspension and Debarment Federal Agency: Department of Agriculture Federal Programs: School Breakfast Program, National School Lunch Program AL Numbers: 10.553, 10.555 Federal Award Numbers and Years: FY2023, FY2024 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Procurement and Suspension and Debarment Audit Findings: Material Weakness, Qualified Opinion Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the simplified acquisitions procurement method of the Procurement and Suspension and Debarment compliance requirement. Context: During the audit period, we tested two vendors that fell within the Small Purchase procurement threshold. Small purchases are those vendors that the School Corporation has purchased between $10,000 and $150,000 of products and goods from during the fiscal year. For one of the two vendors selected for testing, we noted the School Corporation did not obtain price or rate quotations from other vendors or document the basis for purchasing from the vendor that was utilized. The School Corporation had $134,542 and $117,589 of expenditures with the vendor for fiscal years 2023 and 2024, respectively. Corrective Action Plan: To meet the conditions of the grant agreement, Caston School Corporation will keep record of all vendors that are outside of our NIESC buying agreement. Vendors on this list will be identified as having an RFP on file or requiring an RFP to purchase. The director or the director’s purchasing designee will consult the list before ordering from the vendor. The School Corporation will ensure that the appropriate number or bids are obtained or will document the reasoning behind why the appropriate number of bids could not be obtained. The School Corporation will run a suspension and debarment check on vendors prior to entering into a contract. Person responsible for implementation and projected implementation date: The Food Services Director and/or the Director’s designee, as well as the Treasurer will be responsible for implementation of the corrective action plan, which will be done immediately.

View Audit 347466

Corrective Action Plans

Filters