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Finding 2025-002 – Policies and Procedures Require Review and Update – ALN 14.871 Housing Choice Voucher Program, ALN 14.850 Low Rent Public Housing, ALN 14.872 Capital Fund Program – Significant Deficiency Corrective Action Plan: Strengthening Board governance, ethical expectations, policy ownershi...
Finding 2025-002 – Policies and Procedures Require Review and Update – ALN 14.871 Housing Choice Voucher Program, ALN 14.850 Low Rent Public Housing, ALN 14.872 Capital Fund Program – Significant Deficiency Corrective Action Plan: Strengthening Board governance, ethical expectations, policy ownership, accountability, and delegated authority. Initial Deliverables • Code of Ethics; • Conflict-of-Interest Policy; • Whistleblower and Reporting Policy; • Delegation of Authority Matrix; • Spending and Approval Authority Matrix; • Signature Authority Matrix; • Policy Development and Review Policy; • Board Governance Framework; • Annual policy acknowledgment process; and • Governance training plan. Standardize the Housing Authority’s major operating processes and reduce reliance on undocumented institutional knowledge. Initial Deliverables • Standard Operating Procedure framework; • Priority SOP inventory; • Housing Choice Voucher processing SOPs; • Public housing occupancy and recertification SOPs; • Waiting-list administration SOPs; • Inspection scheduling and tracking procedures; • Intake and communication procedures; • Position-responsibility matrix; • Updated job descriptions; • Workload assessment; • Staff onboarding procedures; and • Cross-training plan. Improve financial accuracy, safeguarding of assets, segregation of duties, reconciliations, reporting, and management review. Initial Deliverables • Financial Policies and Procedures Manual; • Accounts-payable controls; • Check-run and payment-review procedures; • Payroll approval procedures; • Cash-handling procedures; • Laundry-revenue procedures; • Bank and general-ledger reconciliation procedures; • Monthly and annual financial-review checklist; • Audit-adjustment reconciliation procedures; • Fixed-asset and nonexpendable-equipment inventory procedures; • Capitalization policy update; • Investment policy update; • Creative Housing financial-accounting review; • Inter-entity transaction policy; • Corrective-action plan for questioned costs; • Financial close calendar; • CFO and Executive Director review responsibilities; and • Board financial dashboard. Person Responsible: Jennifer Oberlin, Executive Director, with oversight and approval by the Board of Commissioners, where applicable. Anticipated Completion Date: • Phase 1: Target Date of completion: November 30, 2026 o Implementation and Communication about the Red Flags Ethics Hotline o Identification and creation of needed policies and structural tools o Updating of current policies as needed • Phase 2: Target Date of Completion: April 30, 2027 o Training on new policies/expectations and accountability standards.
Finding 2025-006 – Tenant Files – Eligibility – ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: Immediate Corrective Actions are: • Begin targeted quality-control reviews of HCV and public housing files; • Correct missing or incomplete documen...
Finding 2025-006 – Tenant Files – Eligibility – ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: Immediate Corrective Actions are: • Begin targeted quality-control reviews of HCV and public housing files; • Correct missing or incomplete documentation; • Verify income calculations and deductions; • Confirm citizenship and identity documentation; • Confirm HAP contracts and EIV reports; • Confirm inspections and annual recertifications; • Review lead-based paint disclosures; and document corrective actions. Following the adoption of updated formal policies and procedures – implement long term corrective actions. Long Term: • Establish a formalized, organization-wide QA/QC and Monitoring Framework that includes: o File Reviews o Wait List QC Checklists & Wait List Archive Requirements o IMS/PIC Reporting Controls o Procurement Reviews o Financial Reviews o Internal Audit Checklists o Internal Monitoring Schedule o Corrective Action Tracking • Create a structured monitoring schedule to verify that internal controls continue to operate exactly as designed. • Develop a standardized reporting template to log control exceptions, track communication protocols, and document the successful remediation of identified deficiencies. • Develop standardized onboarding program that incorporates training on core organizational policies, ethical expectations and foundational internal control responsibilities. • Develop Agency-Wide Training Calendar and CE Requirements and Annual Policy Certifications and employ a system to track and archive all. Person Responsible: Jennifer Oberlin, Executive Director, with oversight and approval by the Board of Commissioners, where applicable. Anticipated Completion Date: February 26, 2027
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that the Federal Financial Report (FFR) was not submitted within the required 90-day timeframe, resulting in noncompliance with the reporting requirements of the grant agreement. While the organization maintained a...
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that the Federal Financial Report (FFR) was not submitted within the required 90-day timeframe, resulting in noncompliance with the reporting requirements of the grant agreement. While the organization maintained a centralized system for tracking reporting deadlines and conducted regular cross-functional coordination between Program, Finance, and Compliance teams, management recognizes that controls over monitoring and escalation were not sufficiently rigorous to ensure timely submission in all instances. This occurred during a period of elevated staffing transition, which contributed to a lapse in the consistent execution and monitoring of reporting timelines; however, management recognizes that controls should be sufficiently robust to operate effectively regardless of personnel changes. Upon identification of the delay, management evaluated the underlying processes and determined that enhancements were needed to strengthen accountability, improve visibility of critical deadlines, and ensure timely followthrough. Management notes that this condition was limited to the timeliness of submission and did not impact the accuracy of the report or result in questioned costs. Management has since reinforced its reporting oversight by enhancing coordination across responsible teams, clarifying ownership of deliverables, and strengthening internal monitoring practices. This includes implementing more structured tracking of key reporting deadlines, reinforcing expectations around advance preparation and review, and increasing senior-level oversight to ensure that upcoming deadlines are proactively managed and met. In addition, management has emphasized timely escalation of potential delays to ensure corrective action can be taken prior to due dates. Management believes these enhancements address the control gaps identified and significant reduce the likelihood of recurrence. Reporting timelines are now more actively monitored as part of ongoing financial and compliance operations, and management will continue to assess the effectiveness of these processes to ensure adherence to grant requirements and compliance with applicable regulations, including 2 CFR Part 200.
BGCPR will provide additional training and guidance to Human Resources personnel to ensure consistent adherence to the internal procedures established. Contact Person: Yezaida Reyes Angel Morales Paul Rivera Team: Finance, Compliance and Human Resources Team Anticipated Completion Date: September 30...
BGCPR will provide additional training and guidance to Human Resources personnel to ensure consistent adherence to the internal procedures established. Contact Person: Yezaida Reyes Angel Morales Paul Rivera Team: Finance, Compliance and Human Resources Team Anticipated Completion Date: September 30, 2026
BGCPR will provide additional training and guidance to Human Resources personnel to ensure consistent adherence to the internal procedures established. Contact Person: Yezaida Reyes Angel Morales Paul Rivera Team: Finance, Compliance and Human Resources Team Anticipated Completion Date: September 30...
BGCPR will provide additional training and guidance to Human Resources personnel to ensure consistent adherence to the internal procedures established. Contact Person: Yezaida Reyes Angel Morales Paul Rivera Team: Finance, Compliance and Human Resources Team Anticipated Completion Date: September 30, 2026
FINDING 2025-001 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Suspension and Debarment Contact Person Responsible for Corrective Action: Tiffany Deakins Contact Phone Number: 260-248-3176 wcauditor@whitleygov.com Views of Responsible Official: We concur with the fi...
FINDING 2025-001 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Suspension and Debarment Contact Person Responsible for Corrective Action: Tiffany Deakins Contact Phone Number: 260-248-3176 wcauditor@whitleygov.com Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Whitley County will make sure that moving forward we will have all vendors sign a contract or agreement with the “suspension and debarment” verbiage included or will have them sign the “suspension and debarment certification” if they will be receiving $25,000 or more of federal funds. I have followed up with Commissioners and asked that they implement a policy for ALL payments of $25,000 and over require filling out a suspension and disbarment certification form. Anticipated Completion Date: September 30, 2026
We agree with the finding that internal controls were not sufficient to maintain compliance with federal procurement standards under Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.318 to 200.327 for a non-federal entity. However, the funds were expended for the intended purpose of the fed...
We agree with the finding that internal controls were not sufficient to maintain compliance with federal procurement standards under Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.318 to 200.327 for a non-federal entity. However, the funds were expended for the intended purpose of the federal award. The Company is committed to implementing internal controls to ensure procurement related to federal awards follow 2 CFR section 200.318 to 200.327. The Company implemented the procurement policy it created on September 30, 2025, in response to prior audit findings 2024-001 and 2024-003, which occurred after the end of the federal award year for this program, that addresses this finding. This procurement policy complies with the requirements of 2 CFR section 200.318 through 200.327, that includes the written standards of conduct covering conflicts of interest and governs the actions of its employees who select, award and administer procurement contracts. This policy includes procedures to ensure proper procurement for small purchases to ensure sufficient price quotations are obtained from the required number of qualified sources, proper sealed bids or proposals are obtained through public advertising, an appropriate cost or price analysis is performed for procurement actions exceeding the simplified acquisition threshold, documentation is retained, and proper oversight is exercised in accordance with 2 CFR section 200.318 through 200.327. While the Company did not perform a check of each vendor against the SAM Exclusions prior to selecting a vendor, the Company has procedures in place to ensure the vendors are approved by Corporate purchasing and in good standing, which limits the risk of conflict of interest between employees and vendors, and limits contracting with a vendor who is suspended or debarred from federal related contracting. Further, the Company confirmed the vendors that were contracted with related to this finding were not included on the SAM Exclusions listing. The Company has now filed the Notice of Federal Interest (“NFI”), and provided the NFI to the appropriate HRSA Grants Management Specialist. The Company also updated its procurement policy to ensure that, regardless of the award amount, it files an NFI against the property deed prior to construction of any project in the appropriate public records office of the jurisdiction in which the property is located and provides a copy to the appropriate HRSA Grants Management Specialist. Contact Person: Ela Lena, Chief Executive Officer of Southern Regional Hospital Expected completion date: Provide training to all employees who are relevant to the procurement process of federal contracts by September 30, 2026.
Commingling of Federal Award Funds in the General Ledger Finding Type: Material Weakness in Internal Control Over Compliance Corrective Action: The Organization will redesign its accounting structure to separately identify federal grant activity. Specific actions include: 1. Establishing grant-speci...
Commingling of Federal Award Funds in the General Ledger Finding Type: Material Weakness in Internal Control Over Compliance Corrective Action: The Organization will redesign its accounting structure to separately identify federal grant activity. Specific actions include: 1. Establishing grant-specific codes within the chart of accounts. 2. Tracking revenues and expenditures by: o Federal program o Funding source o Assistance Listing Number o Grant period 3. Requiring transaction-level coding for all federal grant activity.4. Generating reimbursement requests and financial reports directly from grant-specific accounting records. 5. Implementing written grant accounting policies and procedures. 6. Providing grant accounting and Uniform Guidance training to accounting and program personnel. Responsible Person: CFO Implementation Date: September 30, 2026 Expected Outcome: Federal expenditures will be separately tracked and readily identifiable, improving compliance with Uniform Guidance requirements and supporting accurate reporting and monitoring of grant funds.
View of Responsible Officials and Corrective Actions: Management agrees with the findings. Management will establish pro­cedures and monitor compliance with those procedures to ensure that monthly replacement reserve deposits are made in accordance with the HAP contract. Contact Persons Responsible:...
View of Responsible Officials and Corrective Actions: Management agrees with the findings. Management will establish pro­cedures and monitor compliance with those procedures to ensure that monthly replacement reserve deposits are made in accordance with the HAP contract. Contact Persons Responsible: Dr. Sharrone Ward, President and Chief Executive Officer Kim Shelton-Mamon, Vice President of Finance Billie Williams, President of Active Real Estate Management Completion Date: Open
Response and Views of Responsible Officials Management acknowledges the finding related to the design and operating effectiveness of internal controls over compliance for the MIECHV program. While key review processes were generally in place, the organization recognizes that controls were not consis...
Response and Views of Responsible Officials Management acknowledges the finding related to the design and operating effectiveness of internal controls over compliance for the MIECHV program. While key review processes were generally in place, the organization recognizes that controls were not consistently documented or demonstrated during the audit period. In addition, documentation supporting expenditure approvals, grant coding, reimbursement preparation, supervisory review, and retention of supporting records was not consistently maintained. As a result, the auditors were unable to rely on the organization's internal controls to reduce the risk of noncompliance. The organization has taken the following corrective actions: • Adopted comprehensive Financial Policies and Procedures and Accounting Policies that clearly define internal controls over purchasing, cash disbursements, payroll, grant management, documentation retention, segregation of duties, supervisory review, and financial reporting. • Implemented written procedures outlining the authorization, coding, allocation, reimbursement, and documentation requirements for grant-funded expenditures. • Adopted a formal Cost Allocation Plan that documents the methodology for allocating shared costs and grant expenditures. • Assigned responsibility for independent review of reimbursement requests prior to submission. Reimbursement requests are now prepared by program management and reviewed by the internal bookkeeper before submission whenever practicable. • Established standardized documentation requirements to retain supporting invoices, approvals, allocation documentation, reimbursement support, and evidence of supervisory review within organized grant files. • Established procedures requiring documentation of management review through signatures, initials, electronic approvals, or other evidence demonstrating that required reviews were completed. To further strengthen internal controls and ensure continued compliance, the organization will: • Develop standardized internal review checklists for reimbursement requests and other key grant compliance activities to document preparation, supervisory review, and approval. • Conduct periodic internal monitoring to verify that established procedures are operating consistently and that supporting documentation is complete. • Provide training to staff responsible for grant administration and financial management regarding internal control responsibilities, documentation expectations, and federal compliance requirements. • Incorporate periodic management review of grant files to verify that expenditures, approvals, reimbursement documentation, and supporting records are complete and retained in accordance with organizational policies. Responsible Official: Josie Brittain Anticipated Completion Date: September 30, 2026
Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of the Treasury Award Number and Year: 2021 Compliance Requirement: Subrecipient Monitoring Management’s Response: We concur. Views of Responsibl...
Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of the Treasury Award Number and Year: 2021 Compliance Requirement: Subrecipient Monitoring Management’s Response: We concur. Views of Responsible Officials and Corrective Action: The program managers lacked understanding of federal grant requirements and overlooked this procedure. To resolve the matter, the City Manager and department leaders convened and suggested that staff receive proper training. They will continue to review the training schedule, factoring in staff availability, venue options, and budget limits. Name of Responsible Person: City of Merced’s Leadership and Grant Program Managers Projected Implementation Date: June 30, 2026
Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of the Treasury Award Number and Year: 2021 Compliance Requirement: Procurement and Suspension and Debarment Management’s Response: We concur. Vi...
Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of the Treasury Award Number and Year: 2021 Compliance Requirement: Procurement and Suspension and Debarment Management’s Response: We concur. Views of Responsible Officials and Corrective Action: The program managers lacked a complete understanding of federal grant requirements and overlooked this procedure. To resolve the matter, the City Manager and department leaders convened and suggested that staff receive proper training. They will continue to review the training schedule, factoring in staff availability, venue options, and budget limits. All current non-Federal entities have been verified. Name of Responsible Person: City of Merced’s Leadership and Grant Program Managers Projected Implementation Date: June 30, 2027
Program Federal Financial Assistance Listing Number.: 21.027 / 14.239 Federal Grantor: U.S. Department of the Treasury / U.S. Department of Housing and Urban Development Award Number and Year: Affects all grant awards included under assistance listing 14.239 and 21.027 on the Schedule of Expenditure...
Program Federal Financial Assistance Listing Number.: 21.027 / 14.239 Federal Grantor: U.S. Department of the Treasury / U.S. Department of Housing and Urban Development Award Number and Year: Affects all grant awards included under assistance listing 14.239 and 21.027 on the Schedule of Expenditures of Federal Awards. Compliance Requirement: Other – Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) - Schedule of Expenditures of Federal awards Management’s Response: We concur. Views of Responsible Officials and Corrective Action: The finance staff and program manager did not fully understand the distinctions between subrecipient and beneficiary, resulting in inaccurate reporting of these amounts. The City Manager and relevant department managers met to address this issue and recommend that staff undergo appropriate training. The training schedule will be discussed further, taking into consideration availability, location, and budget constraints. This was corrected in the Single Audit Report which will be filed with the Federal Government. Name of Responsible Person: Finance Leadership and Grant Program Managers Projected Implementation Date: August 1, 2026
Program: HOME Investment Partnerships Program Federal Financial Assistance Listing Number: 14.239 Federal Grantor: U.S. Department of Housing and Urban Development Award Number and Year: M16-MC060227; M17-MC060227; M20-MC060227; M21-MC060227; M23- MC060227; M24-MC060227 Compliance Requirement: Speci...
Program: HOME Investment Partnerships Program Federal Financial Assistance Listing Number: 14.239 Federal Grantor: U.S. Department of Housing and Urban Development Award Number and Year: M16-MC060227; M17-MC060227; M20-MC060227; M21-MC060227; M23- MC060227; M24-MC060227 Compliance Requirement: Special Tests and Provisions – Wage Rate Requirements Management’s Response: We concur. Views of Responsible Officials and Corrective Action: The City Engineering Department is the lead for all city capital projects and monitors prevailing wage requirements. The Housing Division is responsible for compliance with HUD specific requirements. This shared responsibility requires a high level of coordination and information sharing. The Housing Division does have draft of HOME Policies &Procedures which were prepared by a consulting firm contracted for the Five-year Consolidated Plan. These policies and procedures include Davis-Bacon and other related federal prevailing wage laws. Name of Responsible Person: Director of Development Services – currently vacant City Engineer - Daryl Jordan Housing Program Supervisor - Kimberly Nutt Projected Implementation Date: The consultant assisting the City has prepared a Draft of Policies and Procedures which are currently being reviewed. We anticipate final approval and implementation by end of January 2027.
Federal Agency Name: Department of Treasury Pass-Through Entity: State of Iowa Department of Management Assistance Listing Number: #21.029 Program Name: Coronavirus Capital Projects Fund Finding Summary: The Cooperative was unable to provide documentation to support review and approval of the Cooper...
Federal Agency Name: Department of Treasury Pass-Through Entity: State of Iowa Department of Management Assistance Listing Number: #21.029 Program Name: Coronavirus Capital Projects Fund Finding Summary: The Cooperative was unable to provide documentation to support review and approval of the Cooperative’s request for reimbursement. Corrective Action Plan: Grant 24-GRAD-005 requires grantees to sign a General Accounting Expenditure form when submitting a reimbursement claim. The form lists the amount of invoices submitted, the MVEC match and the reimbursement requested. The CEO will sign off on these forms. For other grant reimbursements, the CFO will create a General Accounting Expenditure form for the CEO to sign off on. That form will be retained with the other supporting documentation. Responsible Individuals: Jeremy Richert, Chief Executive Officer and Kelly Gibbs, Chief Financial Officer Anticipated Completion Date: June 2026
Federal Agency Name: Department of Treasury Pass-Through Entity: State of Iowa Department of Management Assistance Listing Number: #21.029 Program Name: Coronavirus Capital Projects Fund Finding Summary: Testing of the federal program identified the following: --One instance where the Cooperative di...
Federal Agency Name: Department of Treasury Pass-Through Entity: State of Iowa Department of Management Assistance Listing Number: #21.029 Program Name: Coronavirus Capital Projects Fund Finding Summary: Testing of the federal program identified the following: --One instance where the Cooperative did complete price comparisons; however, the memo documenting the procurement did not reference the price comparison. The procurement file did not obtain all required components of the procurement process including rationale for selecting the vendor or the procurement method used. --One instance where the Cooperative did not follow the procurement process as detailed in the procurement policy and no documentation was retained to support the rationale for selection of vendor. Corrective Action Plan: The Cooperative has taken steps to remedy the findings of the 2025 single audit: --Management reviewed procurement policies with department heads that are responsible for contractor and material procurement for grants. --Accounting staff will now review all grant expenditures at least monthly to catch new vendors in a more timely manner and assure that appropriate procurement policy has been adhered to prior to contractor starts work or material is used on projects. Responsible Individuals: Jeremy Richert, Chief Executive Officer and Kelly Gibbs, Chief Financial Officer Anticipated Completion Date: July 2026
2025-101 Lack of Effective Internal Controls over the Application of the Sliding Fee Scale Condition: The Organization lacks consistently applied processes and procedures related to the application of the sliding fee scale. The Organization’s current review process related to the sliding fee scale t...
2025-101 Lack of Effective Internal Controls over the Application of the Sliding Fee Scale Condition: The Organization lacks consistently applied processes and procedures related to the application of the sliding fee scale. The Organization’s current review process related to the sliding fee scale to identify errors quickly to allow for corrections to be made in a timely manner does not always detect all errors. We also noted: • Sliding fee scales were not used for the agreement that the Organization has in place with the local school district in which they provide services to students. The agreement specifically does not allow the Organization to obtain information related to household size and income as needed to appropriately place the family on the sliding fee scale. The agreement also indicates no amounts can be collected from the students, except when that student has insurance which allows the Organization to bill the insurance company for a portion of the fees. • Sliding fee scales are not used in the disaster recovery bus program that does not charge the patients for services. Corrective Action Planned: The Organization has hired a new Chief Financial Officer and a new Revenue Cycle Manager. Sliding fee discount program training has been incorporated into onboarding for all new front desk employees. The billing department is adding a Patient Accounts Specialist who will monitor and review individual sliding fee determinations for accuracy and completeness and will conduct ongoing training with front desk staff as needed. Additionally, management will perform quarterly random sample testing of sliding fee determinations to verify that household size, income documentation, and discount tier were applied in accordance with the Organization's sliding fee discount policy. With respect to the school district agreement and the bus program, management will contact HRSA to request written guidance or a waiver confirming that the sliding fee discount schedule is not required to be applied to these programs. Management will also amend the Organization's sliding fee discount policies and procedures accordingly and will remove the word "disaster" from references to the bus program, as the program is not limited to disaster-related services. Person Responsible for Corrective Action: Tonya Nicholson, Chief Financial Officer Anticipated Completion Date: October 2026
FINDING 2025-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Contact Phone Number and Email Address: Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We h...
FINDING 2025-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Contact Phone Number and Email Address: Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We have contracted Baker Tilly to do the SLFRF report. We now send them all needed information to compile the report. The Auditor then reviews prior to submission. Anticipated Completion Date: April 30, 2026 INDIANA STATE
FINDING 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Contact Person Responsible for Corrective Action: Christy Smiley Contact Phone Number and Email Address: 812-663-2570; csmiley@decaturcounty.in.gov Views of Responsible Officials...
FINDING 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Contact Person Responsible for Corrective Action: Christy Smiley Contact Phone Number and Email Address: 812-663-2570; csmiley@decaturcounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We put into policy to collect Suspension and Debarment certifications from vendors. In 2025 we collected paperwork from vendors that received bids. We did not collect from other vendors that did work for the County. We now are aware of this policy and better understand that every vendor that is awarded a contract of $25,000 or more must submit a no suspension and debarment verification form. Anticipated Completion Date: March 1, 2027
Condition: Controls were not designed or implemented effectively to ensure: 1. Mortgage and escrow payments were made in accordance with the due dates and amounts specified in the executed mortgage note agreement. 2. Earnings are retained in the replacement reserve account 3. The Organization comple...
Condition: Controls were not designed or implemented effectively to ensure: 1. Mortgage and escrow payments were made in accordance with the due dates and amounts specified in the executed mortgage note agreement. 2. Earnings are retained in the replacement reserve account 3. The Organization completes the required financial reports in accordance with the applicable accounting basis, supported by underlying records representing the activity for the period reported. Planned Corrective Action: Management will design and implement internal controls to ensure compliance with mortgage escrow payments, reserve account funding, and quarterly financial reporting requirements, including a process to ensure that documentation of reviews is retained. Contact person responsible for corrective action: Louise Arzu, Vice President, Finance Anticipated Completion Date: 9/30/2026
FINDING 2025-002 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Sandra L Morton Contact Phone Number and Email Address: 812-481-7000 slmorton@duboiscountyin.org Views of Responsible Officials: We disagree wi...
FINDING 2025-002 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Sandra L Morton Contact Phone Number and Email Address: 812-481-7000 slmorton@duboiscountyin.org Views of Responsible Officials: We disagree with the finding that the 2025 Annual P & E report current obligations were overstated by $8,300,967, which was the amount of cumulative obligations. Explanation and Reasons for Disagreement: We do not believe there was a systemic lack of effective internal controls or noncompliance throughout the audit period. We determined that the funds were fully obligated and reported the amount based on that interpretation, as was done on the previous reports submitted.
Finding 2025-004 - Various Federal Programs: Cash Management- Excess Federal Cash, Untimely Reconciliations [Material Weakness}: Condition - At June 30, 2025, the College maintained excess federal cash balances across multiple federal programs, indicating that cash drawdowns and/or payable balances ...
Finding 2025-004 - Various Federal Programs: Cash Management- Excess Federal Cash, Untimely Reconciliations [Material Weakness}: Condition - At June 30, 2025, the College maintained excess federal cash balances across multiple federal programs, indicating that cash drawdowns and/or payable balances were not aligned with immediate cash needs for allowable program expenditures. These balances represented federal funds drawn or recorded as payable to federal agencies that were not supported by actual and immediate allowable program expenditures at year-end. The following table summarizes excess federal cash balances identified by program as of June 30, 2025: "Federal Program" "Excess Cash" "Minority Science and Engineering Improvement Program" 120,031 "Science Consortium of Minority Schools" 169,907 "NSF - Empowerment of Undergraduate STEM Majors" 94,801 "NSF - Tennessee Louis Stokes TLSAMP" 54,834 "Title III" 455,679 "FUTURE" 188,215 "Total Identified Excess Cash" 1,083,467 The College did not adequately reconcile federal cash activity to underlying grant expenditures on a timely basis and did not ensure that drawdowns were limited to amounts necessary to meet immediate cash needs. In addition, the College lacked effective monitoring controls to identify and resolve excess cash positions across federal programs in a timely manner. Federal bank reconciliations were untimely and error prone. Corrections occurred only after auditor inquiry. Federal accounts also earned excess interest. Corrective Action Plan The College requests drawdowns for Title Ill and FUTURE programs on a reimbursable basis, including review and approval procedures. Of the total amount identified for the Title Ill program, a $181,433 receivable related to FY2025. The balance related to prior year(s) activity. The College will review its Federal program cost allocation procedures to ensure all eligible costs are properly identified and supported going forward. The College has engaged two accounting firms to assist with staff training and bring all reconciliations current. In addition, standard month-end and year-end closing procedures will be implemented to address timely, accurate Federal program reconciliations and audit readiness going forward. The College experienced significant staff turnover within its business office. In addition, the College is undergoing conversion to a new Enterprise Resource Planning (ERP) system which affected its ability to complete some functions within a timely manner. Completion Date - September 30, 2026 Responsible Party - Chief Financial Officer
Identifying Number: 2025-002: Documentation of Internal Controls Over Compliance Finding: We noted that controls identified by management over all material compliance requirements lack sufficient documentation to conclude application of controls is in place. Corrective Actions Taken or Planned: Mana...
Identifying Number: 2025-002: Documentation of Internal Controls Over Compliance Finding: We noted that controls identified by management over all material compliance requirements lack sufficient documentation to conclude application of controls is in place. Corrective Actions Taken or Planned: Management agrees with the finding and has implemented, or is in the process of implementing, the following corrective actions: 1. Development of Written Policies and Procedures • The Institute will perform a comprehensive review of all applicable Student Financial Assistance compliance requirements and develop formal written policies and procedures documenting the processes and controls for each material compliance area. Procedures will include the individual responsible, required documentation, review requirements, and retention standards. 2. Documentation of Internal Controls • Management will establish standardized control documentation requirements for all compliance activities. Evidence of review and approval will be maintained through signatures, initials, electronic approvals, checklists, reconciliations, or other documented support sufficient to demonstrate that controls were performed and reviewed. 3. Compliance Monitoring Checklists • The Institute will implement compliance monitoring checklists covering all direct and material compliance requirements identified in the audit, including: o Cash Management o Reporting o Student Eligibility o Student Disbursements o Credit Balance Processing o NSLDS Reporting o Gramm-Leach-Bliley Act Information Security Requirements • The checklists will be completed and reviewed periodically to provide evidence of compliance and supervisory oversight. 4. Training and Cross-Training • Financial Aid and Administrative personnel will receive training on federal student aid compliance requirements, documentation expectations, and internal control responsibilities. Cross training will be performed to mitigate risks associated with employee turnover and ensure continuity of operations. 5. Management Review and Oversight • Management will implement periodic supervisory reviews of compliance activities and supporting documentation to verify controls operating as designed. Results of compliance monitoring activities and any identified deficiencies will be reported to senior administration, and corrective actions will be tracked to completion. 6. Annual Compliance Review • The Institute will conduct an annual review of Student Financial Assistance policies, procedures, and internal controls to ensure continued compliance with Department of Education regulations, Uniform Guidance requirements, and changes in federal program requirements. Identifying Number: 2025-002: Documentation of Internal Controls Over Compliance (Continued) Responsible Officials: • Executive Vice President – Ariane Sweeney • Director of Financial Aid – Dr Thelbert Snowden • Controller/Outsourced Accounting Partner – YPTC Associates Melissa McGuire & Samantha Glass • Compliance and Information Security Personnel, as applicable Anticipated completion date: The written policies and procedures, compliance monitoring tools, and documentation standards will be fully implemented by December 31, 2026. Ongoing monitoring, training, and annual reviews will continue thereafter.
Views of Responsible Officials: The District will implement formal internal control procedures requiring review and documented approval of all SNP Claim for Reimbursement Summary reports prior to submission in PEARS. The following procedures will be implemented: 1. The Director of Food Services will...
Views of Responsible Officials: The District will implement formal internal control procedures requiring review and documented approval of all SNP Claim for Reimbursement Summary reports prior to submission in PEARS. The following procedures will be implemented: 1. The Director of Food Services will prepare the monthly SNP Claim for Reimbursement Summary report and compile all supporting meal count documentation. 2. Prior to submission, the Administrative Assistant to the Director of Food Services or another designated individual independent of the preparation process will: a. Review the claim for mathematical accuracy; b. Verify meal counts against supporting documentation; c. Confirm claims are submitted within required timelines; and 3. Evidence of the review and approval will be documented through: a. Signature or electronic approval on the reimbursement summary report; and b. Retention of supporting documentation in accordance with federal and state record retention requirements. 4. A written standard operating procedure (SOP) outlining these review and approval responsibilities will be developed and communicated to applicable personnel. The Business Manager will periodically monitor compliance with the procedure to ensure controls remain effective.
We will strengthen our controls around reporting of expenses on consolidated SEFA report for our subsidiary and related organizations. We will exclude expenses that exceed the total budget and recommend posting adjustments in the books so that these are not included in grant expenses.
We will strengthen our controls around reporting of expenses on consolidated SEFA report for our subsidiary and related organizations. We will exclude expenses that exceed the total budget and recommend posting adjustments in the books so that these are not included in grant expenses.
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