Corrective Action Plans

Finding 497932 (2023-002)

Material Weakness 2023

Lawrence County

IN

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

FINDING 2023-002 Finding Subject: Internal Controls over COVID-19 – Coronavirus State and Local Fiscal Recovery Funds: American Rescue Plan Grant Summary of Finding: As part of sound management of the Federal award, the County was responsible for implementing a system of internal control that would ...

FINDING 2023-002 Finding Subject: Internal Controls over COVID-19 – Coronavirus State and Local Fiscal Recovery Funds: American Rescue Plan Grant Summary of Finding: As part of sound management of the Federal award, the County was responsible for implementing a system of internal control that would ensure compliance with the applicable requirements. The County had not properly designed or implemented such a system. There was no evidence of segregation of duties, such as an oversight, review, or approval process, that would have ensured that expenditures of award funds were made only for activities and costs that were allowable under the Federal award and Federal regulations and that expenditures were made only for costs incurred within the period of performance. Additionally, the County Auditor prepared and submitted all required reports without an oversight, review, or approval process in place to ensure that the reports were accurate. Contact Person Responsible for Corrective Action: Paula Stewart, Auditor Contact Phone Number and Email Address: 812-275-3111 pstewart@lawrencecounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The County Commissioners oversee the COVID -19 – Coronavirus State and Local Fisal Recovery Fund: American Rescue Plan Grant. The county will obtain a signoff form for expenditures from this grant to indicate a review to determine the payment of award funds is only for activities and costs that are allowable under the Federal award and Federal regulations and only for costs incurred within the period of performance. The county will also implement a procedure to assign the preparation of the annual report to one individual in the office of the County Auditor. Upon completion, the individual will turn the completed report over to another individual to verify its accuracy and completeness. Both individuals will sign and date the completed report. Anticipated Completion Date: Immediately.

View Audit 320559

Finding 497918 (2023-005)

Material Weakness 2023

Harrison County

IN

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

FINDING 2023-005 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Finding: Finding 2023-005 found that the County did not have an effective system of internal controls in place to ensure accurate and complete reporting of Project and Expenditure (P...

FINDING 2023-005 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Finding: Finding 2023-005 found that the County did not have an effective system of internal controls in place to ensure accurate and complete reporting of Project and Expenditure (P&E) reports for the Coronavirus State and Local Fiscal Recovery Funds (SLFRF). The County was unable to provide supporting documentation for current period and cumulative obligations, resulting in reporting errors. This issue was isolated to the one annual P&E report submitted during the audit period. Contact Person Responsible for Corrective Action: Chad Shireman Contact Phone Number and Email Address: 812-738-8241; cshireman@harrisoncounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The County Auditor's office acknowledges the need for strengthened internal controls and improved processes to ensure compliance with reporting requirements for federal awards. A system of internal controls will be designed and implemented to ensure segregation of duties in the preparation, review, and submission of federal reports. This will involve designating different personnel for the preparation and review of P&E reports to ensure accuracy and thorough oversight before submission. Staff involved in federal reporting will receive training on SLFRF compliance and reporting requirements, including proper procedures for documenting obligations and reporting them accurately. The County will review its procedures to ensure compliance with federal reporting requirements periodically. This will help identify any potential issues in a timely manner and allow for immediate corrective action if needed. In addition, regular reviews will verify that corrective actions from prior audits are fully implemented and maintained. Anticipated Completion Date: December 31, 2024

View Audit 320521

Finding 497917 (2023-004)

Material Weakness 2023

Harrison County

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

FINDING 2023-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Summary of Finding: Finding 2023-004 revealed that the County did not have policies or procedures in place to verify the suspension or debarment status of contractors paid with f...

FINDING 2023-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Summary of Finding: Finding 2023-004 revealed that the County did not have policies or procedures in place to verify the suspension or debarment status of contractors paid with federal funds under the State and Local Fiscal Recovery Funds (SLFRF) program. For the four transactions tested, totaling $4,963,562, the County did not verify the suspension or debarment status of vendors before making payments. This lack of controls and noncompliance with federal requirements was a systemic issue during the audit period. Contact Person Responsible for Corrective Action: Chad Shireman Contact Phone Number and Email Address: 812-738-8241; cshireman@harrisoncounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The County Auditor's office acknowledges the need for proper internal controls related to suspension and debarment checks for contractors receiving $25,000 or more in federal funds. The County will create and adopt a formal policy requiring verification of the suspension and debarment status of all contractors involved in transactions exceeding $25,000 before any contract is awarded or payment is made and require vendors to registered with SAM.gov . The policy will require checks to be performed using the Excluded Parties List System (EPLS), as mandated by federal regulations, and verification to be documented in each contract file. County staff involved in procurement and contracting will undergo training on federal compliance requirements, including the verification of suspension and debarment status for covered transactions under the SLFRF and other federal programs. A system of documentation and record retention will be established to ensure that all suspension and debarment verifications are properly recorded and maintained for audit purposes. A regular monitoring process will be implemented to review compliance with suspension and debarment requirements. Anticipated Completion Date: December 31, 2024

View Audit 320521

Finding 497615 (2023-003)

Material Weakness 2023

Town of Cambridge City

IN

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

FINDING 2023-003 Finding Subject: Drinking Water State Revolving Fund (DWSRF) Cluster -Procurement Summary of Finding: The Town did not obtain price or rate quotes for the two vendors tested that were less than the simplified acquisition threshold of $150,000 but exceeded the $10,000 micro-purchase ...

FINDING 2023-003 Finding Subject: Drinking Water State Revolving Fund (DWSRF) Cluster -Procurement Summary of Finding: The Town did not obtain price or rate quotes for the two vendors tested that were less than the simplified acquisition threshold of $150,000 but exceeded the $10,000 micro-purchase threshold. The micro-purchase threshold may be increased, but the Town did not provide documentation that the threshold had been increased. Documentation detailing the history of procurement, which must include the reason for the procurement method used, was not available for audit. Contact Person Responsible for Corrective Action: Sherry Ervin Contact Phone Number and Email Address: 765-478-3522 cctownclerk@comcast.net Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Town will document in the minutes when there is only one (1) vendor available for the purchase of equipment Anticipated Completion Date: By year end 12/31/2024

View Audit 320389

Finding 497597 (2023-003)

Material Weakness 2023

City of Vincennes

IN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.303

FINDING 2023‐003 Finding Subject: Highway Planning and Construction ‐ Procurement Summary of Finding: Material weakness in Internal Control over information submitted to INDOT Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812‐882‐6426 cla...

FINDING 2023‐003 Finding Subject: Highway Planning and Construction ‐ Procurement Summary of Finding: Material weakness in Internal Control over information submitted to INDOT Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812‐882‐6426 clane@vincennes.in.gov Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Clerks office will assist the City Engineer and Mayors office staff to ensure that all requirements related to the Grant agreements are being completed and filed timely. Anticipated Completion Date: Immediately

View Audit 320371

Finding 497516 (2023-005)

Significant Deficiency 2023

Lifewire

WA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303 § 200.430

o As of June 30, 2024, LifeWire has implemented a new software package called VELA in which direct services staff enter their actual time worked to contracts, which is then reviewed and approved by their supervisors and reported to Finance staff for payroll processing. By December 31, 2024, the Fina...

o As of June 30, 2024, LifeWire has implemented a new software package called VELA in which direct services staff enter their actual time worked to contracts, which is then reviewed and approved by their supervisors and reported to Finance staff for payroll processing. By December 31, 2024, the Finance staff will ensure all 2024 actual hours worked toward contracts have been reviewed and approved by all direct services staff whose time is billed and approved by their supervisors. o Name of Responsible Individual: Jeannette Biffle, Controller

View Audit 320262

Finding 497505 (2023-002)

Material Weakness 2023

Lifewire

WA

Questioned Costs Subrecipient Monitoring § 200.303

LifeWire’s advocacy team always strives to place survivors into housing where rent is reasonable and in line with fair market rates in eastern Washington. Though it was observed that all rents paid were comparable similar units in the area, our documentation was insufficient to prove we had performe...

LifeWire’s advocacy team always strives to place survivors into housing where rent is reasonable and in line with fair market rates in eastern Washington. Though it was observed that all rents paid were comparable similar units in the area, our documentation was insufficient to prove we had performed these analyses. o After this oversight was brought to our attention, as of June 30, 2024, LifeWire has trained the Housing Team staff on the necessity of completing rent reasonableness evaluations for every participant placed in housing where their rent is paid by the Continuum of Care program. Rent reasonableness assessments are completed by participants’ assigned advocate, reviewed and approved by their supervisor, signed and dated in PDF format, and filed and maintained appropriately. o As of June 30, 2024, LifeWire has implemented an additional 90-day documentation review for every participant in this program. At the 90-day mark, supervisors on the Housing Team review all participant documents to ensure that all compliance requirements are met. o Name of Responsible Individual: Jeannette Biffle, Controller

View Audit 320262 Questioned Costs: $1

Finding 497389 (2023-002)

Significant Deficiency 2023

Minnesota Indian Women's Sexual Assault Coalition

MN

Allowable Costs / Cost Principles § 200.303

It was determined during the 2022 audit that expenditures initiated by the Executive Director did not have the required approval. At the time of the 2022-002 finding, an update was made to the procedures in the Financial Policies and Procedures manual Part III, Sections 2 and 4 to address the use of...

It was determined during the 2022 audit that expenditures initiated by the Executive Director did not have the required approval. At the time of the 2022-002 finding, an update was made to the procedures in the Financial Policies and Procedures manual Part III, Sections 2 and 4 to address the use of MIWSAC credit/debit cards for expenditures. This update was included with the corresponding corrective action plan in August 2023. The Executive Director’s credit/debit card purchases and expense reimbursement requests are now approved by the Keeper of Finances or the Keeper of Traditional Ways. This corrective action was fully implemented November 1, 2023. Corrective Action responsible party: Lisa Case, Fractional Controller – All In One Accounting lisa.case@allinoneaccounting.com 651-374-4460 Corrective Action contact: Nicole Matthews, Executive Director nmatthews@miwsac.org 651-646-4800

View Audit 320126

Finding 497384 (2023-003)

Significant Deficiency 2023

Minnesota Indian Women's Sexual Assault Coalition

MN

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

During 2023, vacation was paid out for a terminated employee. This payment did not agree with the organization’s vacation policy and documented approval of the decision was not available. Involuntary terminations at MIWSAC are rare. In the case of the terminated employee, vacation was paid out as th...

During 2023, vacation was paid out for a terminated employee. This payment did not agree with the organization’s vacation policy and documented approval of the decision was not available. Involuntary terminations at MIWSAC are rare. In the case of the terminated employee, vacation was paid out as though the termination was a voluntary resignation. This error was an oversight during payroll processing. As a result of this finding, the current policies & procedures surrounding payout of earned, unused vacation will be reviewed at an upcoming Circle Keepers meeting. Any approved changes to the policy will be documented in the Employee Handbook and distributed to all employees. This corrective action will be completed no later than September 30, 2024 Corrective Action contact/responsible party: Nicole Matthews, Executive Director nmatthews@miwsac.org 651-646-4800

View Audit 320126

Finding 497380 (2023-001)

Significant Deficiency 2023

Presbyterian Healthcare Services

NM

Questioned Costs Procurement, Suspension & Debarment § 200.303 § 200.317 § 200.318 § 200.319 § 200.320

Finding 2023-001 – Internal control deficiency and noncompliance over Procurement 1) Communication & Awareness: • Debrief by Director, Research and Sponsored Awards with the Community Health Department Senior Leaders and Program Managers regarding the audit finding; including procurement requirem...

Finding 2023-001 – Internal control deficiency and noncompliance over Procurement 1) Communication & Awareness: • Debrief by Director, Research and Sponsored Awards with the Community Health Department Senior Leaders and Program Managers regarding the audit finding; including procurement requirements, the nature of the deficiency and failure points. This occurred on 8/27/2024. • Meeting between Director, Research and Sponsored Awards, PHS Communications and Brand Management leadership and VP of Community Health to communicate procurement requirements and clarify responsibilities for communication of applicability of Federal procurement requirements to specific projects for which advertising services are requested. Initial Meeting occurred 8/28/2024. 2) Training & Education: • Targeted Training with the Community Health department (primary recipient of on-going Federal funding) on Federal procurement requirements. This training will be provided by the Research and Sponsored Awards staff and will be extended to any additional departments new to Federal funding. • Enhancement of existing required annual enterprise-wide leadership training that includes a section on grant funding with increased emphasis on procurement. Research and Sponsored Awards department is responsible for content. • Development of materials for new hires or others new to grant funding who are responsible for federally funded projects (collaboration between Research and Sponsored Awards department and Community Health department) 3) Policies & Procedures: • Written Procedures & Toolkits: Development of written procedures for contracting, exclusion checks and general procurement of goods or services to include checklists / toolkits to facilitate actions required for compliance with Federal procurement rules. • Update to existing policy “Federally funded Grants or Contracts – Procurement / Purchase of Supplies, Services and Other Property” to clarify the responsibilities for communication of applicability of Federal procurement requirements when a department receiving Federal funding procures goods or services through other PHS departments. 4) Collaboration with PHS Marketing department to ensure pathways exist for competitive bids, when necessary, including documentation of processes related to procurements under Federal funding. The first meeting was held 9/12/2024. 5) The Director, Research and Sponsored Awards and Community Health Department will review the items identified as questioned costs to identify if any improper payments were made to PHS. Contact Person: Lori Galves, Director, Research and Sponsored Awards Anticipated Completion Date: December 31, 2024

View Audit 320124 Questioned Costs: $1

Finding 497374 (2023-005)

Material Weakness 2023

Southwest Health and Human Services

MN

Eligibility Material Weakness Internal Control / Segregation of Duties § 200.303

Finding Number: 2023-005 Finding Title: Eligibility – METS Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Kathryn Herding – Eligibility Supervisor Corey Remiger – Eligibility Supervisor Ashley VanOverbeke- Eligibility Supervisor Corrective Actio...

Finding Number: 2023-005 Finding Title: Eligibility – METS Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Kathryn Herding – Eligibility Supervisor Corey Remiger – Eligibility Supervisor Ashley VanOverbeke- Eligibility Supervisor Corrective Action Planned: The planned corrective action is to continue reminding and reviewing with staff on a regular basis and at unit meetings the need to utilize checklists with all applications and renewals so all required documentation is on file, verify income and asset requirements, and complete case transfers correctly. Supervisors and/or Lead Workers will also complete case reviews for accuracy. Anticipated Completion Date: October 31, 2024

View Audit 320115

Finding 497373 (2023-004)

Material Weakness 2023

Southwest Health and Human Services

MN

Eligibility Material Weakness Internal Control / Segregation of Duties § 200.303

Finding Number: 2023-004 Finding Title: Eligibility – MAXIS Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Kathryn Herding – Eligibility Supervisor Corey Remiger – Eligibility Supervisor Ashley VanOverbeke- Eligibility Supervisor Corrective Actio...

Finding Number: 2023-004 Finding Title: Eligibility – MAXIS Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Kathryn Herding – Eligibility Supervisor Corey Remiger – Eligibility Supervisor Ashley VanOverbeke- Eligibility Supervisor Corrective Action Planned: The planned corrective action is to continue reminding and reviewing with staff on a regular basis and at unit meetings the need to utilize checklists with all applications and renewals so all required documentation is on file, verify income and asset requirements, and complete case transfers correctly. Supervisors and/or Lead Workers will also complete case reviews for accuracy. Anticipated Completion Date: October 31, 2024

View Audit 320115

Finding 497371 (2023-003)

Material Weakness 2023

Southwest Health and Human Services

MN

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

Finding Number: 2023-003 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles, and Reporting Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Lisa DeBoer – Director of Business Management Jenny Severson – Fiscal Office...

Finding Number: 2023-003 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles, and Reporting Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Lisa DeBoer – Director of Business Management Jenny Severson – Fiscal Officer Tiffany Bailey – Fiscal Officer Corrective Action Planned: The planned corrective action is to review report instructions regularly, accurately identify appropriate eligible revenue and expenditures for each report and review for accuracy by implementing secondary review of the data that is being reported. The FTE payroll splits have been implemented in the current year. Anticipated Completion Date: October 31, 2024

View Audit 320115

Finding 497369 (2023-002)

Material Weakness 2023

Southwest Health and Human Services

MN

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

Finding Number: 2023-002 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Program: 93.563 Child Support Enforcement Name of Contact Person Responsible for Corrective Action: Lisa DeBoer – Director of Business Management Jenny Severson – Fiscal Officer Tiffany Bailey...

Finding Number: 2023-002 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Program: 93.563 Child Support Enforcement Name of Contact Person Responsible for Corrective Action: Lisa DeBoer – Director of Business Management Jenny Severson – Fiscal Officer Tiffany Bailey – Fiscal Officer Corrective Action Planned: The planned corrective action is to review report instructions regularly, accurately identify appropriate eligible revenue and expenditures for each report and review for accuracy by implementing secondary review of the data that is being reported. The FTE payroll splits have been implemented in the current year. Anticipated Completion Date: October 31, 2024

View Audit 320115

Finding 497345 (2023-004)

Significant Deficiency 2023

Town of Paradise

CA

Reporting § 200.303

Description of Finding: The Federal Financial Reports (SF-425) final report for the reporting period and date of December 31, 2022 was submitted on September 19, 2023. Quarterly federal financial report for the period of January 1, 2023 to March 31, 2023 was submitted on May 8, 2023. Statement ...

Description of Finding: The Federal Financial Reports (SF-425) final report for the reporting period and date of December 31, 2022 was submitted on September 19, 2023. Quarterly federal financial report for the period of January 1, 2023 to March 31, 2023 was submitted on May 8, 2023. Statement of Concurrence or Nonconcurrence: Reporting was not submitted timely. Corrective Action: Staff turnover contributed to the delay in reporting. Contact information for new staff has been added to reporting agencies for correspondence in reporting and program requirements. Additionally, during FY22/23 additional staff was hired to track reporting requirements and submit reporting. Name of Contact Person: Aimee Beleu, Finance Director, (530) 872-6291, abeleu@townofparadise.com Projected Completion Date: 6/30/24

View Audit 320057

Finding 497334 (2023-001)

Significant Deficiency 2023

Savio House

CO

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.303

Planned Corrective Action: Savio believes that our internal control system is effective in determining allowable costs charged to the grant. In addition to the reviews done by the Controller, there is an additional third party review to ensure all costs are allowable. We do believe that we could bet...

Planned Corrective Action: Savio believes that our internal control system is effective in determining allowable costs charged to the grant. In addition to the reviews done by the Controller, there is an additional third party review to ensure all costs are allowable. We do believe that we could better segregate the controls within the Organization to further improve the system of internal controls. We will modify our controls to require that all expenses along with the indirect rate and calculation will be reviewed and approved by the Development department rather than the controller to provide a better review process for appropriateness and support of costs before reimbursement, as recommended by the auditor. Since the Development department writes the grants they would have the best knowledge on what expenses qualify and verify support. This will be implemented immediately. Name of Contact Person: Eric Heppe, Controller, EHeppe@saviohouse.org Anticipated completion date: September 2024 invoicing process

View Audit 320032

Finding 497326 (2023-001)

Material Weakness 2023

City of New Albany

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.1 § 200.303

FINDING 2023-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The City submitted four P&E reports during the audit period; however, the controls in place were not effective to prevent, or detect and correct, errors. As a result, errors...

FINDING 2023-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The City submitted four P&E reports during the audit period; however, the controls in place were not effective to prevent, or detect and correct, errors. As a result, errors in reporting were identified. The current period and cumulative expenditures reported consisted of the amounts expended by the beneficiaries who were awarded funds from the City, rather than total amounts expended to the beneficiaries, resulting in current period expenditures and cumulative expenditures being incorrectly reported on all four reports as follows:  Quarterly Report: October 1, 2022 to December 31, 2022 Current period expenditures were overstated by $40,350. Cumulative expenditures were understated by $262,057.  Quarterly Report: January 1, 2023 to March 31, 2023 Current period expenditures were understated by $2,338,864. Cumulative expenditures were understated by $2,499,656.  Quarterly Report: April 1, 2023 to June 30, 2023 Current period expenditures were understated by $1,200,000. Cumulative expenditures were understated by $3,699,656.  Quarterly Report: July 1, 2023 to September 30, 2023 Current period expenditures were overstated by $2,126,306. Cumulative expenditures were understated by $1,573,349. Contact Person Responsible for Corrective Action: Linda Moeller Contact Phone Number and Email Address: 812-948-5333 and lmoeller@cityofnewalbany.com Views of Responsible Officials and Explanation and Reasons for Disagreement:  We concur with the finding.  However, the issue and non-compliance deals with the interpretation of the federal rules regarding the appropriate amounts to report and when to report them by subrecipients of the monies. INDIANA STATE BOARD OF ACCOUNTS 19 Office of the Controller  New Albany City Hall  142 E Main Street, Suite 314  New Albany, Indiana 47150 Telephone: 812-948-5333  www.cityofnewalbany.com City of New Albany, Indiana Linda Moeller City Controller  The non-compliance is not related to policies or controls not being effective to prevent, detect or correct errors. In fact, the reporting system initially implemented by the City and put in the federal reports provided the actual expenditures for those periods by recipients of the grants.  However, the City does agree that after full examination and review of the federal rules the initial full amount of funds provided to the subrecipients should have been reported in full versus the actual expenditures during the periods. Description of Corrective Action Plan:  Current period and cumulative expenditures reported will consist of the amounts advanced to subrecipients. Anticipated Completion Date:  The City has already made this correction in its most recent Quarterly Report April 1, 2024 to June 30, 2024.

View Audit 320010

Finding 497320 (2023-002)

Significant Deficiency 2023

Monroe County Board of Education

GA

Procurement, Suspension & Debarment School Nutrition Programs Subrecipient Monitoring § 200.303

FA 2023-002 Strengthen Controls over Suspension and Debarment Compliance Requirement: Procurement and Suspension and Debarment Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: G...

FA 2023-002 Strengthen Controls over Suspension and Debarment Compliance Requirement: Procurement and Suspension and Debarment Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: 10.553 - School Breakfast Program 10.555 - National School Lunch Program Federal Award Number: 235GA324N1199 Questioned Costs: None Identified Prior Year Finding: FA 2022-002 Description: A review of expenditures charged to the Child Nutrition Cluster revealed that the School District's internal control procedures were not operating appropriately to ensure that the School District's suspension and debarment procedures were followed. Corrective Action Plans: The School District has returned to following its approved procurement procedures. Estimated Completion Date: July 1, 2024 Contact Person: Chris Johnson, Director of Financial Services Telephone: 478-994-2031 Email: chris.johnson@mcschools.org

View Audit 319968

Finding 497318 (2023-001)

Significant Deficiency 2023

Monroe County Board of Education

GA

School Nutrition Programs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

FA 2023-001 Strengthen Controls over Special Reporting Compliance Requirement: Reporting Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education Assista...

FA 2023-001 Strengthen Controls over Special Reporting Compliance Requirement: Reporting Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: 10.553 - School Breakfast Program 10.555 - National School Lunch Program Federal Award Number: 235GA324N1199 Questioned Costs: None Identified Prior Year Finding: FA 2022-001 Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over the monthly Claims for Reimbursement process. Corrective Action Plans: The School District has returned to collecting Free and Reduce applications and recording the student meals accordingly. Estimated Completion Date: July 1, 2024 Contact Person: Chris Johnson, Director of Financial Services Telephone: 478-994-2031 Email: chris.johnson@mcschools.org

View Audit 319968

Finding 497311 (2023-003)

Significant Deficiency 2023

Henry County

IN

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

FINDING 2023-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The County submitted one Project and Expenditure report during the audit period. The Chief Deputy County Auditor was responsible for preparing and submitting the Project and...

FINDING 2023-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The County submitted one Project and Expenditure report during the audit period. The Chief Deputy County Auditor was responsible for preparing and submitting the Project and Expenditure report and the County Auditor reviewed and approved the report prior to submission; however, there was no documentation that suggested that this review process was in place that could be provided. Contact Person Responsible for Corrective Action: Debra Walker Contact Phone Number and Email Address: 765-529-2800 dwalker@henrycounty.in.gov Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: The County Auditor and Deputy Auditor will review the Project and Expenditure report together and sign the printed out copy of the report. Anticipated Completion Date: Immediately.

View Audit 319963

Finding 497310 (2023-002)

Material Weakness 2023

Henry County

IN

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

FINDING 2023-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Summary of Finding: Upon inquiry of the County in order to review the procedures in place for verifying that an entity with which it plans to enter into a covered transaction is ...

FINDING 2023-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Summary of Finding: Upon inquiry of the County in order to review the procedures in place for verifying that an entity with which it plans to enter into a covered transaction is not suspended, debarred, or otherwise excluded, the County divulged that they had no process in place during the audit period. A population of 13 covered transactions for goods or services were paid from Coronavirus State and Local Fiscal Recovery Fund funds during the audit period. A sample of 3 transactions were selected for testing. The County did not verify the vendors' suspension and debarment status prior to payment due to the County not having policies or procedures in place to verify that contracted were neither suspended nor debarred, or otherwise excluded or disqualified from participating in federal assistance programs or activities. Due to the number and magnitude of exceptions identified, per auditor judgement, we concluded it would not be appropriate to expand the sample size or perform any additional procedures. Contact Person Responsible for Corrective Action: Debra Walker Contact Phone Number and Email Address: 765-529-2800 dwalker@henrycounty.in.gov Views of Responsible Officials: We concur with the findings. Since we did not see anything on the vendor we did not print of the blank page. Description of Corrective Action Plan: The County Auditor and Deputy Auditor will check the SAM.gov website then fill out and sign Debarment and Suspension Certification. Anticipated Completion Date: Immediately

View Audit 319963

Finding 497252 (2023-009)

Significant Deficiency 2023

County of Kern

CA

Procurement, Suspension & Debarment § 200.303

Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027 Recommendation: We recommend that the County add a section to its standard contractor and subrecipient contracts for the other party to certify they are not suspended or debarred. In addition, we recommend the County e...

Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027 Recommendation: We recommend that the County add a section to its standard contractor and subrecipient contracts for the other party to certify they are not suspended or debarred. In addition, we recommend the County establish controls to ensure that evidence of suspension and debarment compliance procedures is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To ensure the County is not doing business with vendors who have been suspended or debarred from doing business with the Federal government, the County Administrative Office will provide additional training and guidance on the verification process for using System for Award Management Exclusions (SAM) to determine if entities have been either suspended or debarred. A form or checklist will be retained of the eligibility verifications completed for audit purposes. Additionally, the County Administrative Office will work with the Auditor-Controller's Office to perform periodic reviews in SAM.gov of randomly selected Subrecipients, Independent Contractors, and procurement contracts over $25,000. Additionally, applicable contracts and subcontracts will include a provision requiring compliance with debarment and suspension regulations. Lastly, a debarment and suspension certification will be included with applicable contracts. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor- Controller and Tarrah Shockley, Division Chief. Planned completion date for corrective action plan: June 30, 2024

View Audit 319826

Finding 497249 (2023-008)

Material Weakness 2023

County of Kern

CA

Questioned Costs Allowable Costs / Cost Principles § 200.303

Block Grants for Prevention and Treatment of Substance Abuse - Assistance Listing No. 93.959 Recommendation: We recommend the County review the cost allocation process of the BHRS department to correctly classify costs between direct and indirect costs. Explanation of disagreement with audit finding...

Block Grants for Prevention and Treatment of Substance Abuse - Assistance Listing No. 93.959 Recommendation: We recommend the County review the cost allocation process of the BHRS department to correctly classify costs between direct and indirect costs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Department will review the cost allocation system to see how direct and indirect costs can be differentiated more accurately. This process may involve the support of the software development team or may involve BHRS finance staff taking a step further to manually redirect system data to ensure costs are not misclassified. Regarding questioned costs, the Department has identified additional direct allowable costs that could have been charged to the grant but were not due to the funding availability cap on billing. These costs can offset any potential costs over the allowable limit. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor- Controller and Tarrah Shockley, Division Chief. Planned completion date for corrective action plan: June 30, 2024

View Audit 319826 Questioned Costs: $1

Finding 497246 (2023-007)

Significant Deficiency 2023

County of Kern

CA

Allowable Costs / Cost Principles Period of Performance Significant Deficiency § 200.303

Block Grants for Prevention and Treatment of Substance Abuse - Assistance Listing No. 93.959 Recommendation: We recommend the County conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the benefits from the expe...

Block Grants for Prevention and Treatment of Substance Abuse - Assistance Listing No. 93.959 Recommendation: We recommend the County conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the benefits from the expenditures were received). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Training on accrual basis of accounting is presented during year-end training. The Department will participate in trainings offered by the County regarding the accrual basis of accounting for expenditures and will ensure accruals are properly captured within the proper period. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor- Controller and Tarrah Shockley, Division Chief. Planned completion date for corrective action plan: June 30, 20

View Audit 319826

Finding 497243 (2023-006)

Significant Deficiency 2023

County of Kern

CA

Allowable Costs / Cost Principles Period of Performance Significant Deficiency § 200.303

Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the benefits from the expenditures we...

Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the benefits from the expenditures were received). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Training on accrual basis of accounting is presented during year-end training. As accruals are only recorded in the Financial Management System (FMS) on an annual basis department will have to manually accrue expenditures when charging other departments for costs incurred. The Aging and Adult Services Department will participate in trainings offered by the County regarding the accrual basis of accounting for expenditures and will ensure sure accruals are properly captured in the proper period when charging costs to BHRS. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor- Controller and Tarrah Shockley, Division Chief. Planned completion date for corrective action plan: June 30, 2024

View Audit 319826

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