Corrective Action Plans

Finding 497320 (2023-002)

Significant Deficiency 2023

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

Finding 497240 (2023-005)

Significant Deficiency 2023

County of Kern

CA

Allowable Costs / Cost Principles Questioned Costs Significant Deficiency § 200.303

COVID-19 Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County review its process over the allocation of payroll expenditures, based on time worked, to determine what adjustments to its system need to be made. Explanation of disagre...

COVID-19 Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County review its process over the allocation of payroll expenditures, based on time worked, to determine what adjustments to its system need to be made. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Aging and Adult Services Department will assess the payroll allocation process, and necessary adjustments will be made. 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 497237 (2023-004)

Significant Deficiency 2023

County of Kern

CA

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.405

COVID-19 Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the A&A and BHRS departments jointly review its procedures for recorded expenditures being allocated by the A&A department to the MHS grant to ensure that there is documentation su...

COVID-19 Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the A&A and BHRS departments jointly review its procedures for recorded expenditures being allocated by the A&A department to the MHS grant to ensure that there is documentation supporting the allocation of expenditures and that it is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Aging and Adult Services Department (A&A) and Behavioral Health Recovery Services (BHRS) will jointly review the procedures for recording expenditures allocated to MHS grants to ensure there is adequate documentation supporting the allocation of expenditures. 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 497236 (2023-003)

Material Weakness 2023

County of Kern

CA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

National Farmworker Jobs Program - Assistance Listing No. 17.264 Recommendation: We recommend the County implement policies and procedures to ensure that FFATA reporting occurs for all subawards of $30,000 or more for all federal awards and that the reporting be performed timely. Explanation of disa...

National Farmworker Jobs Program - Assistance Listing No. 17.264 Recommendation: We recommend the County implement policies and procedures to ensure that FFATA reporting occurs for all subawards of $30,000 or more for all federal awards and that the reporting be performed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: All County departments receiving federal funding will be notified about this requirement. 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 497226 (2023-006)

Significant Deficiency 2023

Platte County, Nebraska

NE

Procurement, Suspension & Debarment § 200.214 § 200.303

The county will implement procedures to ensure when a contractor is paid with federal funds, sam.gov will be utilized to verify the entity has not been suspended or disbarred and such procedure will be documented.

View Audit 319814

Finding 497039 (2023-005)

Significant Deficiency 2023

The Henry L. Stimson Center

DC

Procurement, Suspension & Debarment § 200.303 § 200.318 § 200.319 § 200.320

Views of Responsible Officials: The Center will update its procurement policies and ensure staff are trained on all procedures and requires documentation. Name and Title of Responsible Official(s): Vibha Bhatia, Vice President of Finance and Operations Anticipated Completion Date: September 30, 20...

Views of Responsible Officials: The Center will update its procurement policies and ensure staff are trained on all procedures and requires documentation. Name and Title of Responsible Official(s): Vibha Bhatia, Vice President of Finance and Operations Anticipated Completion Date: September 30, 2024

View Audit 319767

Finding 497035 (2023-004)

Significant Deficiency 2023

The Henry L. Stimson Center

DC

Procurement, Suspension & Debarment § 200.214 § 200.303

Views of Responsible Officials: The Center will implement internal controls to ensure that all vendors, contractors, and consultants are screened for suspension and debarment prior to entering into any executed contract. A policy will also be formalized and staff trained on new procedures. Name and...

Views of Responsible Officials: The Center will implement internal controls to ensure that all vendors, contractors, and consultants are screened for suspension and debarment prior to entering into any executed contract. A policy will also be formalized and staff trained on new procedures. Name and Title of Responsible Official(s): Vibha Bhatia, Vice President of Finance and Operations Anticipated Completion Date: September 30, 2024

View Audit 319767

Finding 497033 (2023-002)

Material Weakness 2023

City of Plymouth

IN

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

FINDING: 2023-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The P&E report was prepared by one employee without an oversight or review process in place to ensure accuracy. The report submitted was not mathematically accurate o...

FINDING: 2023-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The P&E report was prepared by one employee without an oversight or review process in place to ensure accuracy. The report submitted was not mathematically accurate or complete. Per Resolution 2022-1028, approved on December 12, 2022, the City obligated funds for six separate projects totaling $2,257,927. However, the P&E report submitted on April 18, 2023 only included one project resulting in an understatement of total obligations of $1,807,927. Additionally for the one project submitted the key line items of “Current Period Expenditures”, “Total Cumulative Expenditures”, and “Current Period Obligations” as reported on the P&E report did not agree to the City’s financial ledger Contact Person Responsible for Corrective Action: Lynn M. Gorski, Clerk-Treasurer Contact Phone Number: 574-936-2124 Views of Responsible Official: We concur with the finding from SBOA. Description of Corrective Action Plan: There was very little training on how to enter information into the Treasury website for the 2022 year. When it was entered there was only one obligation in the amount of $68,609 even though Resolution No. 2022-1028 noted the intent on spend. Because of lack of training on entering the information it was understated. When the information was entered for the April 2024 report all obligations were entered. When the next report is processed, I will have another staff member verify what is entered prior to submission to the Treasury Department. Anticipated Completion Date: April 30, 2025 Lynn M. Gorski Title: Clerk-Treasurer Date: August 26, 2024

View Audit 319764

Finding 497032 (2023-001)

Material Weakness 2023

City of Plymouth

IN

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

FINDING 2023-001 Finding Subject: COVID-19: Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Summary of Finding: The City did not have polices or procedures in place to verify that contractors were neither suspended nor debarred, or otherwise excluded or disqualified,...

FINDING 2023-001 Finding Subject: COVID-19: Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Summary of Finding: The City did not have polices or procedures in place to verify that contractors were neither suspended nor debarred, or otherwise excluded or disqualified, from participating in federal assistance programs or activities. During the audit period, two covered transactions for goods or services that equaled or exceeded $25,000 paid from SLFRF funds were identified. For both of these transactions, the City did not verify the vendors' suspension and debarment status prior to payment. Contact Person Responsible for Corrective Action: Lynn M. Gorski, Clerk-Treasurer Contact Phone Number: 574-936-2124 Views of Responsible Official: We concur with the finding from SBOA. Description of Corrective Action Plan: There was no training on this procedure. At the October 2023 Clerk-Treasurer training this was a training for which I found out this is a requirement. After that meeting I implemented looking at Sam.gov for vendors to see if they were suspended or debarred. Going forward I will do my best to look at sam.gov for vendors prior to payment being made, along with a printout from sam.gov for the vendor being paid to be included with Accounts Payable Voucher for processing Anticipated Completion Date: September 30, 2024 Lynn M. Gorski Title: Clerk-Treasurer Date: August 26, 2024

View Audit 319764

Finding 496987 (2023-002)

Significant Deficiency 2023

National Farmers Union Foundation

DC

Questioned Costs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Views of Responsible Officials: Management understands the need to ensure all accounts are reconciled in advance of the audit. The adjustment to tie out opening net assets has been addressed and corrected, and going forward will be recorded and confirmed prior to audit except for adjustments for K-1...

Views of Responsible Officials: Management understands the need to ensure all accounts are reconciled in advance of the audit. The adjustment to tie out opening net assets has been addressed and corrected, and going forward will be recorded and confirmed prior to audit except for adjustments for K-1s received after the audit starts. For year-end investments balances, some K-1s are received during fieldwork. Since it is not feasible to prepare estimates of the K-1 amounts, the entries for the investment balance changes and corresponding adjustments for intercompany adjustments, management will prepare the entries as soon as K-1s are received and send to auditors. Since this is due to timing, not internal process, management respectfully requests that this process will not reflect negatively against the organization. For audit adjustments impacting the numbers on the Schedule of Federal Expenditures, the issues have been addressed and systems have been developed to ensure timely and accurate information. Management, including the Vice President of Finance and Business Development, and the Organization's contracted financials service providers have recorded these entries as of 7/9/2024.

View Audit 319739 Questioned Costs: $1

Finding 496983 (2023-003)

Material Weakness 2023

City of Hobart

IN

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

FINDING: 2023-003 Finding Subject: COVID 19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: An effective Internal Control System, which would include segregation of duties, was not in place at the City in order to ensure compliance with requirement related to the ...

FINDING: 2023-003 Finding Subject: COVID 19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: An effective Internal Control System, which would include segregation of duties, was not in place at the City in order to ensure compliance with requirement related to the grant agreement and the reporting compliance requirement. Project and Expenditure reports were to be completed annually for the federal program by the City. In 2023, one employee prepared and submitted the annual report without evidence of a review by a second individual. Contact Person Responsible for Corrective Action: Deborah A. Longer, Clerk-Treasurer Contact Phone Number and Email Address: (219) 942-1940 clerk-treasurer@cityofhobart.org Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: While the City concurs with the finding, the Clerk-Treasurer also distributed the prepared 2023 report via email to the Mayor and the Common Council members prior to submittal, requesting their review and/or comments. When no comments were offered within a reasonable time, the Clerk-Treasurer submitted the report in a timely fashion as required. Future reporting activities will be distributed to the Mayor and the Council in a similar way but will require some type of response as evidence of their review prior to submittal. Anticipated Completion Date: August 27, 2024 Signed: Deborah A. Longer Deborah A. Longer, Clerk-Treasurer Date: August 27, 2024

View Audit 319735

Finding 496982 (2023-002)

Material Weakness 2023

City of Hobart

IN

Procurement, Suspension & Debarment § 200.303

FINDING: 2023-002 Finding Subject: COVID 19 – Coronavirus State and Local Fiscal Recovery Funds – Procurement and Suspension and Debarment Summary of Finding: Prior to entering into subawards and covered transactions with COVID 19 – Coronavirus State and Local Fiscal Recovery funds, recipients are r...

FINDING: 2023-002 Finding Subject: COVID 19 – Coronavirus State and Local Fiscal Recovery Funds – Procurement and Suspension and Debarment Summary of Finding: Prior to entering into subawards and covered transactions with COVID 19 – Coronavirus State and Local Fiscal Recovery funds, recipients are required to verify that vendors are not suspended, debarred, or otherwise excluded. “Covered transactions” include but are not limited to contracts for goods and services awarded under a non-procurement transaction (i.e. grant agreement) that are expected to equal or exceed $25,000. The verification is to be done by checking the Excluded Parties List System (EPLS), collecting a certification from that person, or adding a clause or condition to the covered transaction with that person. In the activity in 2023, two covered transactions tested had no documentation to show that suspension and debarment of the vendor was verified prior to entering into purchases of over $25,000. Contact Person Responsible for Corrective Action: Deborah A. Longer, Clerk-Treasurer Contact Phone Number and Email Address: (219) 942-1940 clerk-treasurer@cityofhobart.org Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: When entering into a covered transaction with a vendor, the City will require the vendor to provide proof that the business is not excluded or disqualified (i.e. suspended or debarred). Proof of this may be provided by: (a) Checking Excluded Parties List System (EPLS) SAM Exclusions; (b) collecting a Certification from the vendor; or (c) adding a clause or condition to the covered transaction with that vendor within the body of a contract or procurement agreement. Anticipated Completion Date: August 27, 2024 Signed: Deborah A. Longer Deborah A. Longer, Clerk-Treasurer Date: August 27, 2024

View Audit 319735

Finding 496981 (2023-001)

Material Weakness 2023

City of Hobart

IN

Procurement, Suspension & Debarment § 200.303

FINDING: 2023-001 Finding Subject: Equitable Sharing program – Procurement and Suspension and Debarment Summary of Finding: Prior to entering into subawards and covered transactions with Equitable Program funds, recipients are required to verify that vendors are not suspended, debarred, or otherwise...

FINDING: 2023-001 Finding Subject: Equitable Sharing program – Procurement and Suspension and Debarment Summary of Finding: Prior to entering into subawards and covered transactions with Equitable Program funds, recipients are required to verify that vendors are not suspended, debarred, or otherwise excluded. “Covered transactions” include but are not limited to contracts for goods and services awarded under a nonprocurement transaction (i.e. grant agreement) that are expected to equal or exceed $25,000. The verification is to be done by checking the Excluded Parties List System (EPLS), collecting a certification from that person, or adding a clause or condition to the covered transaction with that person. In the activity in 2023, three covered transactions tested had no documentation to show that suspension and debarment of the vendor was verified prior to entering inti purchases of over $25,000.. Contact Person Responsible for Corrective Action: Deborah A. Longer, Clerk-Treasurer Contact Phone Number and Email Address: (219) 942-1940 clerk-treasurer@cityofhobart.org Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: When entering into a covered transaction with a vendor, the City will require the vendor to provide proof that the business is not excluded or disqualified (i.e. suspended or debarred). Proof of this may be provided by: (a) Checking Excluded Parties List System (EPLS) SAM Exclusions; (b) collecting a Certification from the vendor; or (c) adding a clause or condition to the covered transaction with that vendor within the body of a contract or procurement agreement. Anticipated Completion Date: August 27, 2024 Signed: Deborah A. Longer Deborah A. Longer, Clerk-Treasurer Date: August 27, 2024

View Audit 319735

Finding 496944 (2023-006)

Material Weakness 2023

City of Michigan City

IN

Subrecipient Monitoring Internal Control / Segregation of Duties Material Weakness § 200.303 § 200.329

FINDING 2023-006 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – US 12 Stormwater Drainage Improvement Project – Reporting Summary of Finding: The Michigan City Sanitary District did not design or implement a system of internal controls that would have prevented the ...

FINDING 2023-006 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – US 12 Stormwater Drainage Improvement Project – Reporting Summary of Finding: The Michigan City Sanitary District did not design or implement a system of internal controls that would have prevented the omission of required progress reports, and lack of oversight process. Contact Person Responsible for Corrective Action: Mary Lynn Wall 219-873-1404 Ext 2006 Contact Phone Number and Email Address: 219-873-1404 Ext 2006 mlwall@emichigancity.com Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The Sanitary District will review the federal grant requirements in order to ensure required reports are submitted in a timely manner. Reports will also be reviewed and documented by another employee prior to submission. Anticipated Completion Date: 08/26/2024

View Audit 319688

Finding 496943 (2023-005)

Material Weakness 2023

City of Michigan City

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

FINDING 2023-005 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – US 12 Stormwater Drainage Improvement Project – Suspension and Debarment Summary of Finding: Prior to entering into subawards and covered transactions with SLFRF award funds, the City of Michigan City S...

FINDING 2023-005 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – US 12 Stormwater Drainage Improvement Project – Suspension and Debarment Summary of Finding: Prior to entering into subawards and covered transactions with SLFRF award funds, the City of Michigan City Sanitary District did not verify that such contractors and vendors were not suspended, debarred, or otherwise excluded. Contact Person Responsible for Corrective Action: Mary Lynn Wall Contact Phone Number and Email Address: 219-873-1404 Ext. 2006 mlwall@emichigancity.com Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: To bring the Sanitary District into compliance with effective internal controls with regards to suspension and debarment, the Sanitary District will verify Contractors and Vendors for suspension or debarment in Sam.gov for any contracts paid with Federal grant funds over $25,000. Verification will be documented by filing a screenshot from Sam.gov. Anticipated Completion Date: 08/26/2024

View Audit 319688

Finding 496942 (2023-004)

Material Weakness 2023

City of Michigan City

IN

Subrecipient Monitoring Internal Control / Segregation of Duties Material Weakness § 200.303 § 200.329

FINDING 2023-004 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – Body Camera - Reporting Summary of Finding: The City did not design or implement a system of internal controls that would have prevented the omission of required progress reports, and lack of oversight ...

FINDING 2023-004 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – Body Camera - Reporting Summary of Finding: The City did not design or implement a system of internal controls that would have prevented the omission of required progress reports, and lack of oversight process. Contact Person Responsible for Corrective Action: Mary Lynn Wall Contact Phone Number and Email Address: 219-873-1404 Ext. 2006 mlwall@emichigancity.com Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The City department responsible for federal grant reporting will review the grant requirements in order to ensure required reports are submitted in a timely manner. Reports will also be reviewed and documented by another employee prior to submission. Anticipated Completion Date: 08/26/2024

View Audit 319688

Finding 496941 (2023-003)

Material Weakness 2023

City of Michigan City

IN

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.306 § 200.403 § 200.458

FINDING 2023-003 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – Body Camera – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Summary of Finding: The City entered into a grant agreement on 03/03/2023 for the purchase of body c...

FINDING 2023-003 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – Body Camera – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Summary of Finding: The City entered into a grant agreement on 03/03/2023 for the purchase of body cameras. The invoice for the body cameras was dated 10/28/2022, prior to approval from the state. The purchase was outside the period of performance. Contact Person Responsible for Corrective Action: Mary Lynn Wall Contact Phone Number and Email Address: 219-873-1404 Ext. 2006 mlwall@emichigancity.com Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: In order for the City to insure that internal controls are in place to prevent noncompliance with federal awards, the City Controller’s office will review and discuss with department personnel, all federal grant applications to ensure compliance with allowable costs and period of performance. Anticipated Completion Date: 08/26/2024

View Audit 319688 Questioned Costs: $1

Finding 496940 (2023-002)

Material Weakness 2023

City of Michigan City

IN

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 – Internal Controls Summary of Finding: The City of Michigan City was not in compliance with effective internal controls related to submitting the P&E reports Contact Person Responsible for Co...

FINDING 2023-002 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – Reporting – Internal Controls Summary of Finding: The City of Michigan City was not in compliance with effective internal controls related to submitting the P&E reports Contact Person Responsible for Corrective Action: Mary Lynn Wall Contact Phone Number and Email Address: 219-873-1404 mlwall@emichigancity.com Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: To bring the City into compliance with effective internal controls to ensure requirements related to the grant agreement and the reporting compliance requirements are satisfied, the City Controller will download from the Treasury website the project detail listing for the Deputy Controller to review and verify prior to submitting the report. Anticipated Completion Date: 08/26/2024

View Audit 319688

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