Corrective Action Plans

Finding 50701 (2022-013)

Significant Deficiency 2022

AL

Cash Management Matching / Level of Effort / Earmarking § 200.303

Finding 2022-013 ? Internal Controls Over Grant Management (Significant Deficiency) Information on the Federal Program: U.S. Department of Education, CFDA No. 84.425, COVID-19 Education Stabilization Fund ? Higher Education Emergency Relief Fund Criteria: 2 CFR 200.303 requires non-federal entities ...

Finding 2022-013 ? Internal Controls Over Grant Management (Significant Deficiency) Information on the Federal Program: U.S. Department of Education, CFDA No. 84.425, COVID-19 Education Stabilization Fund ? Higher Education Emergency Relief Fund Criteria: 2 CFR 200.303 requires non-federal entities receiving federal awards establish and maintain internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations and the terms and conditions of the federal awards. Condition: During audit procedures we tested controls over applicable compliance requirements. We tested two drawdowns for cash management requirements. One of the draws was a reimbursement for lost revenue. Although the method to calculate lost revenue was reviewed and approved, the individual calculations and amounts to be drawn were not reviewed and approved. We tested five disbursements made directly to students as grant awards. Of these five, four disbursements did not have documentation of review or approval of the amounts to be paid. Management?s View: Management had previously held many discussions regarding drawdown calculations and student disbursements either verbally or during in-person meetings that were not formally documented. Corrective Action Plan: Management is in process of updating Policies and Procedures. Management will ensure that all drawdown calculations will be sent to the Director of Accounting and Finance and the VP of Administration and Operations for review and approval via email. Student disbursement information, including the method of determining qualifying students and amounts, will be sent by the Dean of Students to the VP of Administration and Operations for review and approval. In the event such information is discussed verbally or at in-person meetings, documentation of date, time, and summary of the discussion will be documented. This will take effect immediately as the policies are formally updated. Anticipated Completion Date: September 30, 2023

View Audit 42964

Finding 50666 (2022-002)

Material Weakness 2022

Gary Public Transportation Corporation

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

Finding 2022-002 - Controls Over Payroll Expenditures (Material Weakness): Criteria: 2 CFR 200.403 establishes principles and standards for determining costs for federal awards carried out through grants, cost reimbursement contracts, and other agreements with state and local governments. To be allo...

Finding 2022-002 - Controls Over Payroll Expenditures (Material Weakness): Criteria: 2 CFR 200.403 establishes principles and standards for determining costs for federal awards carried out through grants, cost reimbursement contracts, and other agreements with state and local governments. To be allowable, under federal awards, cost must meet certain criteria: a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles. b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. c) Be consistent with policies and procedures that apply uniformly to both federally- financed and other activities of the non-Federal entity. d) Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this part. f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. g) Be adequately documented. h) Cost must be incurred during the approved budget period. Additionally, 2 CFR 200.303 indicates that non-Federal Entities receiving Federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award current staff initiates and monitors pay advices. These documents are being transmitted electronically for review by all parties and to preserve records.

View Audit 48407

Finding 50637 (2022-002)

Significant Deficiency 2022

Kipp Philadelphia Charter School

PA

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

U.S. Department of Education KIPP Philadelphia Charter School respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 ? June 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings a...

U.S. Department of Education KIPP Philadelphia Charter School respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 ? June 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Education 2022-002 Education Stabilization Fund: 84.425D Elementary and Secondary School Emergency Relief (ESSER) Fund 84.425C Governor?s Emergency Education Relief (GEER) Fund Recommendation: To ensure timeliness and accountability with the required reporting to the Pennsylvania Department of Education, we recommend management review and update procedures to establish consistent preparation, review, and submission of all program reports by the required deadline. Such controls would ensure timely and accurate reporting being produced and optimum cash flow management. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. Action taken in response to finding: The team began expanding to close the capacity gaps. A public grants manager was added in April 2022. Additionally, the team began recruiting for a Controller. This role will be onboarding in spring 2023. In addition to the new roles, the Controller will be tasked with reviewing policies and procedures and identifying opportunities to improve efficiencies. Name of the contact person responsible for corrective action: Natalie Wiltshire, Chief Operating Officer ? Phone: 215-294-8596 Email: nwiltshire@kippphiladelphia.org Planned completion date for corrective action plan: 09/30/2023 If the U.S. Department of Education has questions regarding this plan, please contact Natalie Wiltshire at 215-294-8596.

View Audit 51556

Finding 50635 (2022-002)

Significant Deficiency 2022

Kipp Dubois Charter School

PA

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

U.S. Department of Education KIPP Dubois Charter School respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 ? June 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are num...

U.S. Department of Education KIPP Dubois Charter School respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 ? June 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Education 2022-002 Education Stabilization Fund: 84.425D Elementary and Secondary School Emergency Relief (ESSER) Fund 84.425C Governor?s Emergency Education Relief (GEER) Fund Recommendation: To ensure timeliness and accountability with the required reporting to the Pennsylvania Department of Education, we recommend management review and update procedures to establish consistent preparation, review, and submission of all program reports by the required deadline. Such controls would ensure timely and accurate reporting being produced and optimum cash flow management. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. Action taken in response to finding: The team began expanding to close the capacity gaps. A public grants manager was added in April 2022. Additionally, the team began recruiting for a Controller. This role will be onboarding in spring 2023. In addition to the new roles, the Controller will be tasked with reviewing policies and procedures and identifying opportunities to improve efficiencies. Name of the contact person responsible for corrective action: Natalie Wiltshire, Chief Operating Officer ? Phone: 215-294-8596 Email: nwiltshire@kippphiladelphia.org Planned completion date for corrective action plan: 09/30/2023 If the U.S. Department of Education has questions regarding this plan, please contact Natalie Wiltshire at 215-294-8596.

View Audit 51555

Finding 50634 (2022-002)

Significant Deficiency 2022

Kipp West Philadelphia Charter School

PA

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

U.S. Department of Education KIPP West Philadelphia Charter School respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 ? June 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findi...

U.S. Department of Education KIPP West Philadelphia Charter School respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 ? June 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Education 2022-002 Education Stabilization Fund: 84.425D Elementary and Secondary School Emergency Relief (ESSER) Fund Recommendation: To ensure timeliness and accountability with the required reporting to the Pennsylvania Department of Education, we recommend management review and update procedures to establish consistent preparation, review, and submission of all program reports by the required deadline. Such controls would ensure timely and accurate/e reporting being produced and optimum cash flow management. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. Action taken in response to finding: The team began expanding to close the capacity gaps. A public grants manager was added in April 2022. Additionally, the team began recruiting for a Controller. This role will be onboarding in spring 2023. In addition to the new roles, the Controller will be tasked with reviewing policies and procedures and identifying opportunities to improve efficiencies. Name of the contact person responsible for corrective action: Natalie Wiltshire, Chief Operating Officer ? Phone: 215-294-8596 Email: nwiltshire@kippphiladelphia.org Planned completion date for corrective action plan: 09/30/2023 If the U.S. Department of Education has questions regarding this plan, please contact Natalie Wiltshire at 215-294-8596.

View Audit 51552

Finding 50556 (2022-004)

Material Weakness 2022

Vigo County School Corporation

IN

Internal Control / Segregation of Duties Special Tests & Provisions Subrecipient Monitoring § 200.303

FINDING 2022-004 Contact Person Responsible for Corrective Action: Teresa Stuckey, Director of Elementary Education and Title I Contact Phone Number: 812-462-4228 Views of Responsible Official: The School Corporation will institute a system that provides for the oversight, review and approval proces...

FINDING 2022-004 Contact Person Responsible for Corrective Action: Teresa Stuckey, Director of Elementary Education and Title I Contact Phone Number: 812-462-4228 Views of Responsible Official: The School Corporation will institute a system that provides for the oversight, review and approval process of required applications and reports to comply with the Special Tests and Provisions ? Participation of Private School Children and Reporting compliance requirements. Description of Corrective Action Plan: The Director of Elementary Education will work with the Curriculum Team to develop an application process that provides for data submission by one individual and a review of the Title I application by another individual. The Director will also work to implement a report review process that includes multiple personnel involved in the preparation and review of reports to ensure their accuracy. Anticipated Completion Date: Immediately

View Audit 53341

Finding 50523 (2022-001)

Material Weakness 2022

YWCA Madison, Inc.

WI

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303

FINDINGS ? FEDERAL AWARD PROGRAM AUDIT MATERIAL WEAKNESS 2022-001 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: YWCA should establish written policies and procedures to provide for timely and appropriate review and approval and adequate document...

FINDINGS ? FEDERAL AWARD PROGRAM AUDIT MATERIAL WEAKNESS 2022-001 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: YWCA should establish written policies and procedures to provide for timely and appropriate review and approval and adequate documentation of overhead allocations and time and effort reporting. Action Taken: We concur with the recommendation and have developed the following plan. In compliance with guidance set forth in the Uniform Guidance 2 CFR section 200.303, YWCA Madison, Inc. will document written policies and procedures to ensure timely and appropriate review and approval of overhead allocations and time and effort reporting. These policies and procedures will also describe the documentation to be used as support for the overhead allocations and time and effort reporting i.e., signed staff timesheets, program or department headcount, and facility floor plans. Additionally, on a quarterly basis, YWCA Madison, Inc. will document, review, and update, if necessary, the basis used for allocating overhead costs and time and effort reporting. A review of this process will be added to the monitoring checklist as part of the internal controls checklist. This checklist will be reviewed monthly by the CEO and the review will be documented.

View Audit 48383

Finding 50503 (2022-003)

Material Weakness 2022

Vigo County School Corporation

IN

Subrecipient Monitoring Special Tests & Provisions Matching / Level of Effort / Earmarking § 200.303 § 200.333 § 200.334

FINDING 2022-003 Contact Person Responsible for Corrective Action: Teresa Stuckey, Director of Elementary Education and Title I Contact Phone Number: 812-462-4228 Views of Responsible Official: The School Corporation will implement effective processes to ensure that the Special Tests and Provisions ...

FINDING 2022-003 Contact Person Responsible for Corrective Action: Teresa Stuckey, Director of Elementary Education and Title I Contact Phone Number: 812-462-4228 Views of Responsible Official: The School Corporation will implement effective processes to ensure that the Special Tests and Provisions ? Annual Report Card, High School Graduation Rate data is solicited and maintained for audit purposes. Description of Corrective Action Plan: The School Corporation will work to develop a more defined process that ensures compliance with procedures that were established, but have not always followed, to ensure that the Special Tests and Provisions ? Annual Report Card, High School Graduation Rate compliance requirement is met. Specific employees will be placed in charge of obtaining documentation from students leaving the district and others will be asked to review and approve the documentation. If documentation is not successfully garnered from parents, schools will maintain records indicating the school?s efforts to solicit the correct documentation from parents. Anticipated Completion Date: Immediately.

View Audit 53341

Finding 50502 (2022-002)

Material Weakness 2022

Vigo County School Corporation

IN

Subrecipient Monitoring Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.303 § 200.333 § 200.334 § 200.77 § 200.78

FINDING 2022-002 Contact Person Responsible for Corrective Action: Teresa Stuckey, Director of Elementary Education and Title I Contact Phone Number: 812-462-4228 Views of Responsible Official: The School Corporation will work with non-public schools to make sure that their enrollment is properly re...

FINDING 2022-002 Contact Person Responsible for Corrective Action: Teresa Stuckey, Director of Elementary Education and Title I Contact Phone Number: 812-462-4228 Views of Responsible Official: The School Corporation will work with non-public schools to make sure that their enrollment is properly reported. Description of Corrective Action Plan: School Corporation personnel will work with non-public school representatives to secure accurate enrollment information and maintain the proper documentation for audit purposes. Additionally, enrollment data entered on the Title I application portal will be reviewed prior to submission to ensure that data entered agrees with supporting documentation. Anticipated Completion Date: During submission of the 23-24 Title I application.

View Audit 53341

Finding 50448 (2022-002)

Material Weakness 2022

Sioux Falls Regional Airport Authority

SD

Reporting Material Weakness § 200.303 § 200.327 § 200.328

Finding 2022-002 Department of Transportation Airport Improvement Program, CFDA #20.106 AIP3-46-0050-57, AIP3-46-0050-61 Finding Summary: Federal share of expenditures reported within SF-425 annual report for grants #57 and #61 did not reconcile to supporting client records. Responsible Individual...

Finding 2022-002 Department of Transportation Airport Improvement Program, CFDA #20.106 AIP3-46-0050-57, AIP3-46-0050-61 Finding Summary: Federal share of expenditures reported within SF-425 annual report for grants #57 and #61 did not reconcile to supporting client records. Responsible Individuals: Dan Letellier, Executive Director Corrective Action Plan: Management will ensure correct support documentation is provided to 3rd party account for correct submission of FAA Forms 5100-126 and 127. Director will also verify that annual report form SF-425 is completed either by the Airport or the State of South Dakota DOT as it has been in the past. Anticipated Completion Date: Ongoing

View Audit 42215

Finding 50428 (2022-002)

Significant Deficiency 2022

American Physical Society

MD

Matching / Level of Effort / Earmarking § 200.303 § 200.403

Policies, procedures and controls have been reviewed and revised to ensure all direct costs and indirect cost allocations are reviewed as part of the month end close process. The ERP system generated allocations, based on the negotiated indirect cost rate, will be reviewed monthly by the grant acco...

Policies, procedures and controls have been reviewed and revised to ensure all direct costs and indirect cost allocations are reviewed as part of the month end close process. The ERP system generated allocations, based on the negotiated indirect cost rate, will be reviewed monthly by the grant accountant and the lead accountant. This error occurred due to a staffing transition. A month end checklist will be created to ensure that all steps of the process are documented, irrespective of the responsible staff. This error did not result in any in appropriate reimbursement as it was corrected by management prior to seeking reimbursement for Q4 2022. APS implemented the corrective action plan on June 5th, 2023. Management's contact responsible for the implementation of the Corrective Action Plan: Name: Jane Hopkins Gould Position: Chief Financial & Operating Officer Telephone number: 301-209-3276

View Audit 43533

Finding 50427 (2022-001)

Significant Deficiency 2022

American Physical Society

MD

Subrecipient Monitoring § 200.303 § 200.331 § 200.332 § 200.521

Policies, procedures and controls have been reviewed and revised to ensure all sub-awards are monitored consistently and that reports are filed regularly with APS. A new reporting form has been created that will log electronic signatures from both the sub-awardee and APS staff. In addition, APS wi...

Policies, procedures and controls have been reviewed and revised to ensure all sub-awards are monitored consistently and that reports are filed regularly with APS. A new reporting form has been created that will log electronic signatures from both the sub-awardee and APS staff. In addition, APS will request a copy of the single federal audit of each sub-awardee annually. And, APS will monitor award amounts and then make the required filings, to meet all reporting requirements set forth under the Transparency Act. APS begin implementing these procedures in Q2 2023, upon discovery of these deficiencies. APS implemented the corrective action plan on June 5th, 2023. Management's contact responsible for the implementation of the Corrective Action Plan: Name: Jane Hopkins Gould Position: Chief Financial & Operating Officer Telephone number: 301-209-3276

View Audit 43533

Finding 50343 (2022-003)

Material Weakness 2022

Central Maine Healthcare Corporation and Subsidiaries

ME

Subrecipient Monitoring Material Weakness Reporting § 200.303

Finding Number: 2022-003 Condition: The Corporation did not follow the reporting requirements outlined in the HHS June 11, 2021, post-payment notice. Planned Corrective Action: Calculations related to lost revenue have been corrected in the March 2023 submissions and have been resolved. Contact per...

Finding Number: 2022-003 Condition: The Corporation did not follow the reporting requirements outlined in the HHS June 11, 2021, post-payment notice. Planned Corrective Action: Calculations related to lost revenue have been corrected in the March 2023 submissions and have been resolved. Contact person responsible for corrective action: Kristen St. Peter Anticipated Completion Date: March 31, 2023 Management Response: A misinterpretation of the guidance has been corrected and the submissions in FY23 are now in compliance with the reporting requirements.

View Audit 53652

Finding 50323 (2022-005)

Significant Deficiency 2022

Sports Leadership and Management Academy of Nevada

NV

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.303

Finding Number: 2022-005 ? Approval Of Expense Reimbursement Submittals Corrective Action Plan: All expense reimbursements should have approval in writing. The findings were at a time when Academica NV was shorthanded, and since all open positions have been filled. Grant managers send a request ...

Finding Number: 2022-005 ? Approval Of Expense Reimbursement Submittals Corrective Action Plan: All expense reimbursements should have approval in writing. The findings were at a time when Academica NV was shorthanded, and since all open positions have been filled. Grant managers send a request for approval of a reimbursement request to schools, once ready. Approvals are now received in writing, via email, prior to any reimbursements being submitted. Personnel Responsible for Corrective Action: Nachum Golodner, Academica Director of Accounting Anticipated Completion Date: June 30, 2023

View Audit 53741

Finding 50319 (2022-004)

Significant Deficiency 2022

Sports Leadership and Management Academy of Nevada

NV

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

Corrective Action Plan: In 2022, the office had downsized due to turnover in staff. While a process was in place for reconciling, a secondary review was not performed to verify accuracy. To strengthen the oversight of financial management in the School, Academica Nevada, the School?s management co...

Corrective Action Plan: In 2022, the office had downsized due to turnover in staff. While a process was in place for reconciling, a secondary review was not performed to verify accuracy. To strengthen the oversight of financial management in the School, Academica Nevada, the School?s management company, has increased staffing to realign staff responsibilities to reduce individual workloads and provide additional oversight and review. On a monthly basis, reconciliations will be performed on grant submissions and expenditures, and reviewed by the Controller, Director of Accounting, or CFO. Personnel Responsible for Corrective Action: Nachum Golodner, Academica Director of Accounting Anticipated Completion Date: June 30, 2023

View Audit 53741

Finding 50253 (2022-002)

Significant Deficiency 2022

Lake County Community College District

OH

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.302 § 200.303 § 200.334

Finding Number: 2022-002 Condition: The College did not retain underlying support related to the student emergency grants information reported by the College on the annual and quarterly basis. Planned Corrective Action: Support used for reporting will be retained for all future reports moving forw...

Finding Number: 2022-002 Condition: The College did not retain underlying support related to the student emergency grants information reported by the College on the annual and quarterly basis. Planned Corrective Action: Support used for reporting will be retained for all future reports moving forward including the fourth quarter 2022 report and the 2022 annual report. Contact person responsible for corrective action: Tom Reynolds, Associate Vice President of Business Services and Deputy Treasurer Lakeland Community College Anticipated Completion Date: As soon as possible moving forward for future quarterly and annual reports starting 12/19/2022

View Audit 51053

Finding 50186 (2022-003)

Material Weakness 2022

Town of Fairmount

IN

Matching / Level of Effort / Earmarking Material Weakness Reporting § 200.302 § 200.303 § 200.328 § 200.329

FINDING 2022-003 Contact Person: Jo Ann Treon Phone Number (765)948-4632 Views of Responsible Official: We concur with the findings. Description of Corrective Action Plan: Forms RD 442-2 & RD Form 442-3 will be completed in August 2023. Anticipated Completion Date: Immediately

View Audit 43699

Finding 50166 (2022-002)

Material Weakness 2022

Children's Hospital Medical Center of Akron

OH

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.213 § 200.303

Akron Children?s will implement a periodic independent review of a sample of vendors sent to the third-party vendor to ensure that the processes employed by third-party vendor are accurate. Akron Children?s will also develop a retention process for all vendor searches and file submissions to eviden...

Akron Children?s will implement a periodic independent review of a sample of vendors sent to the third-party vendor to ensure that the processes employed by third-party vendor are accurate. Akron Children?s will also develop a retention process for all vendor searches and file submissions to evidence compliance with the Federal regulations.

View Audit 43393

Finding 50113 (2022-001)

Material Weakness 2022

Adams County

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

FINDING 2022-001 Contact Person Responsible for Corrective Action: Tony Mellencamp Contact Phone Number: 260-724-5303 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We will check the SAM.Gov website for vendors and or also have them provide a statem...

FINDING 2022-001 Contact Person Responsible for Corrective Action: Tony Mellencamp Contact Phone Number: 260-724-5303 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We will check the SAM.Gov website for vendors and or also have them provide a statement that they are not suspended or debarred from receiving Federal Funds. We also will add this into our policies and procedures. Anticipated Completion Date: 7/12/2023

View Audit 43632

Finding 50107 (2022-007)

Material Weakness 2022

North Judson -- San Pierre School Corporation

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.302 § 200.303 § 200.328

FINDING 2022-007 Subject: COVID-19 ? Education Stabilization Fund ? Reporting Federal Agency: Department of Education Federal Program: COVID-19 ? Education Stabilization Fund Assistance Listing Number: 84.425D Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425U200013...

FINDING 2022-007 Subject: COVID-19 ? Education Stabilization Fund ? Reporting Federal Agency: Department of Education Federal Program: COVID-19 ? Education Stabilization Fund Assistance Listing Number: 84.425D Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425U200013 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 two Annual Data Reports to the Indiana Department of Education (IDOE) to meet federal reporting requirements for ESSER grant awards. The first report was for the period of March 13, 2020 to September 30, 2020 and was due by January 21, 2021. The second report was for the period of October 1, 2020 to June 30, 2021 and was due by May 13, 2022. The amounts reported as expended on the second report did not agree to the underlying expenditure records of the School Corporation. Per discussion with the Treasurer, the amounts reported on the second report were the appropriated amounts, not the actual amounts expended during the period. Therefore, the amounts on the report were overstated by approximately 25% for ESSER I and 280% for ESSER II compared to the correct amounts on the School Corporation?s records. Additionally, for both reports that were submitted, there was no documented review by someone other than the preparer of the report to ensure the information submitted was complete and accurate. Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Description of Corrective Action Plan: The NJ-SP School Corporation will implement effective internal controls to oversee that the federal grant information prepared and submitted is accurate and reviewed. This will be done in order to detect and correct errors that may be entered prior to submission. This will be done by having an employee prepare the Annual Data Report information while another employee reviews and approves the information before submitting. These controls will be implemented by July 1, 2023. Responsible Party and Timeline for Completion: Dalton C. Tunis ? Corporation Business Manager/Treasurer Anticipated Completion Date: July 1, 2023

View Audit 43779

Finding 50106 (2022-006)

Material Weakness 2022

North Judson -- San Pierre School Corporation

IN

Equipment & Real Property Management § 200.303 § 200.313

FINDING 2022-006 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management 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 Identifyi...

FINDING 2022-006 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management 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, S425U200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: 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 Equipment and Real Property Management compliance requirement. 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 Equipment and Real Property Management. The School paid for chiller repairs and purchased a new air conditioning unit using education stabilization funds. These capital improvements were not added to a detailed listing of capital assets that would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and the use and condition of the property. In addition, a physical inventory had not been taken in the past two years. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Description of Corrective Action Plan: The NJ-SP School Corporation will implement internal controls to ensure that management establishes a system and maintains adequate supporting documentation to ensure compliance with the grant agreement and Equipment and Real Property Management. This will include documented summary appraisal reports annually. These controls will be implemented by July 1, 2023. Responsible Party and Timeline for Completion: Dalton C. Tunis ? Corporation Business Manager/Treasurer Anticipated Completion Date: July 1, 2023

View Audit 43779

Finding 50105 (2022-005)

Material Weakness 2022

North Judson -- San Pierre School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403

FINDING 2022-005 Subject: COVID-19 ? Education Stabilization Fund ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: COVID-19 ? Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and...

FINDING 2022-005 Subject: COVID-19 ? Education Stabilization Fund ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles 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, S425U200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Material Noncompliance Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with the requirements related to the grant agreement and the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance requirements. Context: (a) During allowable cost testing for vendor disbursements, we noted a portion of ARP ESSER funds were utilized to repair the chiller at the middle and high schools. The School Corporation incurred a total of approximately $284,000 in chiller repair costs between September 2021 and May 2022 and requested reimbursement for those expenditures from ARP ESSER funds in full. In October 2021, the School Corporation received an insurance claim check in the amount of $106,755 to cover a portion of the repair costs. The School Corporation did not deduct the amount received through insurance from the amount requested for reimbursement from federal funds, resulting in an overpayment of federal funds during the audit period. (b) Additionally, the School Corporation had not properly designed or implemented internal controls over recording transactions for payroll and fringe benefit disbursements to ensure the accuracy and classification of the payroll disbursements. Payroll disbursements make up approximately 45% of the program costs charged to the Education Stabilization Fund. One employee was responsible for processing payroll. Payroll reports were submitted to the School Board and Treasurer for review and approval; however, the reports only provided a total gross amount paid from each fund. The reports did not list the employees who were paid from the fund. In March 2021, the Treasurer implemented a review of the payroll distribution report, which is broken out by fund and individual employee. The lack of controls related to payroll disbursements was isolated to the 2020-2021 year. Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Description of Corrective Action Plan: The NJ-SP School Corporation will implement internal controls to ensure a system is established for when insurance claim checks are received that they are properly receipted and funds are accounted for and deducted from necessary reimbursement grants. This will give better proper oversight, reviews, and approvals over the insurance claim checks received. These controls will be implemented by July 1, 2023. The NJ-SP School Corporation will also implement internal controls to oversee that financial transactions related to receipts and payroll and fringe benefits disbursements are reviewed and verified by proper management to ensure that accuracy and documentation is in place. These controls were implemented on March, 2021. Responsible Party and Timeline for Completion: Dalton C. Tunis ? Corporation Business Manager/Treasurer Anticipated Completion Date for (b): March 2021 Anticipated Completion Date for (a): July 1, 2023

View Audit 43779 Questioned Costs: $1

Finding 50102 (2022-009)

Material Weakness 2022

North Judson -- San Pierre School Corporation

IN

Matching / Level of Effort / Earmarking § 200.303

FINDING 2022-009 Subject: Special Education Cluster (IDEA) ? Earmarking Federal Agency: Department of Education Federal Program: Special Education Grants to States Assistance Listing Number: 84.027 Federal Award Numbers and Years (or Other Identifying Numbers): 20611-109-PN01 Pass-Through Entity: I...

FINDING 2022-009 Subject: Special Education Cluster (IDEA) ? Earmarking Federal Agency: Department of Education Federal Program: Special Education Grants to States Assistance Listing Number: 84.027 Federal Award Numbers and Years (or Other Identifying Numbers): 20611-109-PN01 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Earmarking Audit Findings: Material Weakness Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the compliance requirements listed above. Context: A proportionate share of special education funds was earmarked to the local private school. The School Corporation could not provide support to substantiate that non-public services were provided. For the special education grant awards that were fully expended during the audit period, the School Corporation did not expend the minimum required amount on services for non-public students with disabilities. Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Description of Corrective Action Plan: The NJ-SP School Corporation will implement internal controls to ensure compliance with the grant agreement and the proportionate share of special education funds. A system will be established that maintains adequate supporting documentation to ensure compliance with the grant agreement and the earmarking and reporting compliance requirements of the proportionate share funds. This will give better proper oversight, reviews, and approvals over the proportionate share special education funds. These controls will be implemented by July 1, 2023. Responsible Party and Timeline for Completion: Dalton C. Tunis ? Corporation Business Manager/Treasurer Anticipated Completion Date: March 2021

View Audit 43779

Finding 50101 (2022-008)

Material Weakness 2022

North Judson -- San Pierre School Corporation

IN

Allowable Costs / Cost Principles § 200.303 § 200.403

FINDING 2022-008 Subject: Special Education Cluster (IDEA) ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Special Education Grants to States, Special Education Preschool Grants Assistance Listing Number: 84.027, 84.173 Fed...

FINDING 2022-008 Subject: Special Education Cluster (IDEA) ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Special Education Grants to States, Special Education Preschool Grants Assistance Listing Number: 84.027, 84.173 Federal Award Numbers and Years (or Other Identifying Numbers): 20611-109-PN01, 21611-109-PN01, 21619-109-PN01 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with the requirements related to the grant agreement and the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance requirements. Context: The School Corporation had not properly designed or implemented internal controls over recording transactions for payroll and fringe benefit disbursements to ensure the accuracy and classification of the payroll disbursements. Payroll disbursements make up 100% of the program costs charged to the Special Education grants. One employee was responsible for processing payroll. Payroll reports were submitted to the School Board and Treasurer for review and approval; however, the reports only provided a total gross amount paid from each fund. The reports did not list the employees who were paid from the fund. In March 2021, the Treasurer implemented a review of the payroll distribution report by fund and individual employee. The lack of controls related to payroll disbursements was isolated to the 2020-2021 year. Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Description of Corrective Action Plan: The NJ-SP School Corporation will implement internal controls to oversee that financial transactions related to receipts and payroll and fringe benefits disbursements are reviewed and verified by proper management to ensure that accuracy and documentation is in place. These controls were implemented on March, 2021. Responsible Party and Timeline for Completion: Dalton C. Tunis ? Corporation Business Manager/Treasurer Anticipated Completion Date: March 2021

View Audit 43779

Finding 50097 (2022-004)

Material Weakness 2022

North Judson -- San Pierre School Corporation

IN

Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.403 § 200.430

FINDING 2022-004 Subject: Child Nutrition Cluster ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program, After School Snack Program, Summer Food Service Program for Childr...

FINDING 2022-004 Subject: Child Nutrition Cluster ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program, After School Snack Program, Summer Food Service Program for Children Assistance Listing Number: 10.553, 10.555, 10.559 Federal Award Numbers and Years (or Other Identifying Numbers): FY2021, FY2022 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with the requirements related to the grant agreement and the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance requirements. Context: The School Corporation had not designed or implemented adequate internal controls to ensure that payroll disbursements were only for food service-related services. Payroll disbursements comprise approximately 45% of the program costs charged to the Child Nutrition Cluster. One employee was responsible for processing payroll. Payroll reports were submitted to the School Board and Treasurer for review and approval; however, the reports only provided a total gross amount paid from each fund. The reports did not list the employees who were paid from the fund. In March 2021, the Treasurer implemented a review of the payroll distribution report, which is broken out by fund and individual employee. The lack of controls related to payroll disbursements was isolated to the 2020-21 year. Additionally, payroll disbursements for custodial employees were allocated to the Child Nutrition Cluster based on a percentage of the custodial employees? salaries. However, there were no time and effort logs or other documentation maintained to support the percentage of the custodial salaries allocated to the Child Nutrition Cluster. The custodial salaries make up approximately 3% of the total payroll disbursements charged to the Child Nutrition Cluster. This was an issue throughout the audit period. Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Description of Corrective Action Plan: The NJ-SP School Corporation will implement internal controls to ensure compliance with the activities allowed or unallowed and allowable costs/cost principles compliance requirements. This will consist of maintaining documentation to support that payroll disbursements are only for food service operating costs by having supporting timesheets and timecards or time and effort reports for all employees paid from the School lunch fund. These controls will be implemented by July 1, 2023. Responsible Party and Timeline for Completion: Dalton C. Tunis ? Corporation Business Manager/Treasurer Anticipated Completion Date: July 1, 2023

View Audit 43779

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