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FINDING 2025-017 Finding Subject: Teacher and School Leader Incentive Grants (Formerly the Teacher Incentive Fund) – Allowable Cost/Cost Principles Contact Person Responsible for Corrective Action: Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, atahmid@sbcsc.k12....
FINDING 2025-017 Finding Subject: Teacher and School Leader Incentive Grants (Formerly the Teacher Incentive Fund) – Allowable Cost/Cost Principles Contact Person Responsible for Corrective Action: Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: This grant was managed by a continued succession of people. The grant information was not centrally housed. Centralized Reporting: The Finance Department now mandates that all approved grant documentation (Grant Award Notifications, reimbursement forms, budget breakdowns) be submitted to Finance immediately. Succession Planning Policy: Added strict continuity protocols to the IC Manual, affirming that all data belongs to the corporation. Requirements include maintained system documentation, account deactivation within 24 hours of employee departure, and formal knowledge handoffs. Segregation of Duties: Updated policy to ensure no single individual manages any financial process (receivables, purchasing, or inventory) end-to-end. Anticipated Completion Date: September 30, 2024 (grant ended). January 1, 2025 is when grant award documentation sharing was required.
FINDING 2025-016 Finding Subject: Teacher and School Leader Incentive Grants (Formerly the Teacher Incentive Fund) – Activities Allowed or Unallowed Contact Person Responsible for Corrective Action: Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, atahmid@sbcsc.k12...
FINDING 2025-016 Finding Subject: Teacher and School Leader Incentive Grants (Formerly the Teacher Incentive Fund) – Activities Allowed or Unallowed Contact Person Responsible for Corrective Action: Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Centralized Reporting: The Finance Department now mandates that all approved grant documentation (Grant Award Notifications, reimbursement forms, budget breakdowns) be submitted to Finance immediately. Succession Planning Policy: Added strict continuity protocols to the IC Manual, affirming that all data belongs to the corporation. Requirements include maintained system documentation, account deactivation within 24 hours of employee departure, and formal knowledge handoffs. Segregation of Duties: Updated policy to ensure no single individual manages any financial process (receivables, purchasing, or inventory) end-to-end. Anticipated Completion Date: September 30, 2024 (grant ended). January 1, 2025 is when grant award documentation sharing was required.
FINDING 2025-015 Finding Subject: Teacher and School Leader Incentive Grants (Formerly the Teacher Incentive Fund) – Cash Management Contact Person Responsible for Corrective Action: Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, atahmid@sbcsc.k12.in.us, mjohns2@...
FINDING 2025-015 Finding Subject: Teacher and School Leader Incentive Grants (Formerly the Teacher Incentive Fund) – Cash Management Contact Person Responsible for Corrective Action: Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Centralized Reporting: The Finance Department now mandates that all approved grant documentation (Grant Award Notifications, reimbursement forms, budget breakdowns) be submitted to Finance immediately. Succession Planning Policy: Added strict continuity protocols to the IC Manual, affirming that all data belongs to the corporation. Requirements include maintained system documentation, account deactivation within 24 hours of employee departure, and formal knowledge handoffs. Segregation of Duties: Updated policy to ensure no single individual manages any financial process (receivables, purchasing, or inventory) end-to-end. Anticipated Completion Date: September 30, 2024 (grant ended). January 1, 2025 is when grant award documentation sharing was required.
FINDING 2025-014 Finding Subject: Teacher and School Leader Incentive Grants (Formerly the Teacher Incentive Fund) – Condition of Records Contact Person Responsible for Corrective Action: Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, atahmid@sbcsc.k12.in.us, mjo...
FINDING 2025-014 Finding Subject: Teacher and School Leader Incentive Grants (Formerly the Teacher Incentive Fund) – Condition of Records Contact Person Responsible for Corrective Action: Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Centralized Reporting: The Finance Department now mandates that all approved grant documentation (Grant Award Notifications, reimbursement forms, budget breakdowns) be submitted to Finance immediately. This grant is no longer in use. Anticipated Completion Date: September 30, 2024 (grant ended). January 1, 2025 is when grant award documentation sharing was required.
FINDING 2025-013 Finding Subject: Gaining Early Awareness and Readiness for Undergraduate Programs – Procurement, Suspension, Debarment Contact Person Responsible for Corrective Action: Chad Addie, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, caddie@sbcsc.k12.i...
FINDING 2025-013 Finding Subject: Gaining Early Awareness and Readiness for Undergraduate Programs – Procurement, Suspension, Debarment Contact Person Responsible for Corrective Action: Chad Addie, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, caddie@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Enforced updated Internal Controls Manual purchasing thresholds and pre-approval workflows. Executing a multi-step resolution: board approval workflows established in 2025–2026, proper procurement/bidding compliance expanded through 2026–2027, and updating board policy to enforce uniform federal guidelines in 2026–2027. Anticipated Completion Date: June 30, 2027
FINDING 2025-012 Finding Subject: Gaining Early Awareness and Readiness for Undergraduate Programs – Allowable Costs / Cost Principles Contact Person Responsible for Corrective Action: Chad Addie, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, caddie@sbcsc.k12.in...
FINDING 2025-012 Finding Subject: Gaining Early Awareness and Readiness for Undergraduate Programs – Allowable Costs / Cost Principles Contact Person Responsible for Corrective Action: Chad Addie, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, caddie@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Contract Retention: HR and Regional Data Services updated software archives to prevent loss of administrative records. Grant Personnel Verification: Grant fiscal officers must review and sign Payroll Certification Reports to confirm payroll accuracy for employees charged to the grant. Payroll & Overtime Controls: All employee compensation must receive prior School Board approval. Implemented a formal 10-step stipend approval workflow and mandated pre-approval for all overtime hours. Anticipated Completion Date: Completed by June 30, 2026
FINDING 2025-011 Finding Subject: Gaining Early Awareness and Readiness for Undergraduate Programs – Internal Controls Contact Person Responsible for Corrective Action: Chad Addie, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, caddie@sbcsc.k12.in.us, atahmid@sbc...
FINDING 2025-011 Finding Subject: Gaining Early Awareness and Readiness for Undergraduate Programs – Internal Controls Contact Person Responsible for Corrective Action: Chad Addie, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, caddie@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The Director of Federal Grants generates detailed expenditure and budget reports, filtering for new transactions since prior requests to ensure alignment before CFO review and submission. Added a dedicated supervisor review signature line on supporting document sheets to confirm approval Anticipated Completion Date: Completed by June 30, 2026
FINDING 2025-010 Finding Subject: Title I Grants to Local Educational Agencies - Special Tests and Provisions – Assessment System Security Contact Person Responsible for Corrective Action: Jenna Harrington, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, jharringt...
FINDING 2025-010 Finding Subject: Title I Grants to Local Educational Agencies - Special Tests and Provisions – Assessment System Security Contact Person Responsible for Corrective Action: Jenna Harrington, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, jharrington@sbcsc.k12.in.us , atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Established a comprehensive testing security and operations plan featuring: • Role-specific scenario-based training for Coordinators, Proctors, and IT. • Mandatory signed non-disclosure agreements (NDAs) due annually by September 30th. • Retention of sign-in sheets, training slides, and make-up accountability quizzes. • Clear escalation protocols for reporting testing irregularities. Anticipated Completion Date: May 31, 2027
FINDING 2025-009 Finding Subject: Title I Grants to Local Educational Agencies - Special Tests and Provisions – Annual Report Card, High School Graduation Rate Contact Person Responsible for Corrective Action: Dr. Bo Yan, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-...
FINDING 2025-009 Finding Subject: Title I Grants to Local Educational Agencies - Special Tests and Provisions – Annual Report Card, High School Graduation Rate Contact Person Responsible for Corrective Action: Dr. Bo Yan, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, byan@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Standardized student mobility protocols to comply with IDOE and ESSA rules: • Transfers: Require written proof/records requests before removing students from 4-year graduation cohorts. • High School Exits: Mandatory principal-led exit interviews for 16–17-year-olds with specific legal qualifying criteria (illness, financial hardship, court order); unapproved dropouts are reported to the BMV. • Unverified Withdrawals: Enforced a 14-day protocol involving multi-channel outreach, welfare checks, and eventual NCMEC/Law Enforcement reporting if unlocated. Anticipated Completion Date: January 1, 2027
FINDING 2025-008 Finding Subject: Title I Grants to Local Educational Agencies - Eligibility Contact Person Responsible for Corrective Action: Dr. Bo Yan, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, byan@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc....
FINDING 2025-008 Finding Subject: Title I Grants to Local Educational Agencies - Eligibility Contact Person Responsible for Corrective Action: Dr. Bo Yan, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, byan@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: • Centralized enrollment/withdrawal document management with weekly accuracy audits. • Updated Internal Control Manual to mandate a 12-item list of enrollment documents (birth certificates, residency proof, immunizations, etc.). • Established a formal "Summary of Attempts" process requiring at least 3 documented attempts to secure residency proof before submitting signed summaries. • Standardized documentation for general transfers, mandatory 16–17-year-old exit interviews, and Title I ESSA graduation cohort tracking. Anticipated Completion Date: January 1, 2027 (Note: Specific student mobility updates corrected April 1, 2026).
FINDING 2025-007 Finding Subject: Title I Grants to Local Educational Agencies - Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Darice Austin-Phillips, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, daustin@sbcsc.k12.in.us, atah...
FINDING 2025-007 Finding Subject: Title I Grants to Local Educational Agencies - Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Darice Austin-Phillips, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, daustin@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Data & HR Retention: Updated software stores and archives via Regional Data Services to prevent administrative record loss. Payroll & Compensation: Enforced required School Board pre-approval for all compensation. Instituted a formal 10-step stipend approval workflow and mandated supervisor pre-approval for all overtime hours. Supporting Documents: Human Resources is responsible for saving and maintaining all personnel requisitions and contracts. Overtime Policy: Mandates supervisor pre-approval before overtime hours are worked Anticipated Completion Date: Corrected 06/30/2026
FINDING 2025-006 Finding Subject: Title I Grants to Local Educational Agencies - Internal Controls Contact Person Responsible for Corrective Action: Darice Austin-Phillips, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, daustin@sbcsc.k12.in.us, atahmid@sbcsc.k12....
FINDING 2025-006 Finding Subject: Title I Grants to Local Educational Agencies - Internal Controls Contact Person Responsible for Corrective Action: Darice Austin-Phillips, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, daustin@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Fiscal officers for each grant are required to review, verify accuracy, sign, and document any discrepancies on Payroll Certification Reports before returning them to the Finance Department for retention. Anticipated Completion Date: Corrected 06/30/2026
CORRECTIVE ACTION PLAN FINDING 2025-005 Finding Subject: Special Education Cluster (IDEA) - Condition of Records Contact Person Responsible for Corrective Action: Kwalfle Scott-Bradley, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, kscottbradley@sbcsc.k12.in.us,...
CORRECTIVE ACTION PLAN FINDING 2025-005 Finding Subject: Special Education Cluster (IDEA) - Condition of Records Contact Person Responsible for Corrective Action: Kwalfle Scott-Bradley, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, kscottbradley@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Reimbursement & Approval Process: Standardized reimbursement requests to require full supporting documentation (transaction details and summary reports). The Director of Federal Grants filters expenditures since the prior request, reconciles totals against disbursements, and obtains CFO approval before submitting. Resolution of Over-Expenditures: Over-expenditures identified during the audit cycle were resolved in January 2026 via School Board approval by transferring unallowable and excess expenditures to the general fund. Category Monitoring: The Special Education Department will monitor budget limits continuously to ensure individual grant categories are not over-expended. Anticipated Completion Date: Completed January 2026
FINDING 2025-004 Finding Subject: Child Nutrition Cluster –Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: James Lutaaya, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, jlutaaya@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@s...
FINDING 2025-004 Finding Subject: Child Nutrition Cluster –Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: James Lutaaya, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, jlutaaya@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Human Resources worked with Regional Data Services to identify the cause of the issue and made corrections to prevent the data being lost on the administrative side moving forward. This involved updates to software stores and archives. PAYROLL EXPENDITURES All compensation an employee receives must go before the School Board for approval prior to the pay. Approvals are retained in the form of Personnel Requisitions, Union Contracts, Board Personnel Approval. Pay Change Process: Stipend Approval Process: STEP ACTIVITY PRIMARY EMPLOYEE LEVEL REVIEWED BY NOTE 1 Create Employee Change Personnel Requisition (in Applicant Tracker or on paper) Employee's Supervisor School / Department Department Supervisor Be specific and fill in all fields. 2 Submit to the Department Supervisor for Review & Approval Employee's Supervisor School / Department Department Supervisor 3 Submit to Human Resources for Review & Approval Department Supervisor Central HR HR will review to ensure compliance with approved salary and job titles 4 Submit to Finance for Review & Approval HR Central Finance Finance will verify vacant positions exists and provide funding information. 5 Submit to Human Resources for Processing Finance Central HR HR will update the employee's information in financial / employee software 6 Verify Accuracy of Updates HR - 2nd employee Central n/a 7 Save a Copy of all Requisitions HR Central n/a 8 All pay changes are included in the Personnel Report that is submitted to the Board to obtain approval. HR Central School Board This includes position changes, job title changes, raises, transfers, etc. INDIANA STATE BOARD OF ACCOUNTS 88 OVERTIME APPROVAL POLICY All overtime hours must receive prior approval from a supervisor or manager before extra hours are worked. Employees are not permitted to work overtime without explicit approval, except in emergency situations where prior approval is not feasible. Failure to obtain approval may result in the overtime hours being unpaid or other disciplinary actions. To request overtime, employees must submit a request to their supervisor with a brief explanation of the need for additional hours. Approval will be granted based on workload requirements and budget considerations. Corrected Date: 06/30/2026 INTEGRITY • ACCOUNTABILITY • EMPOWERMENT ACADEMIC QUALITY | EQUITY, INCLUSION & JUSTICE | FINANCIAL SUSTAINABILITY | COMMUNITY PARTNERSHIPS 737 Beale Street • South Bend, Indiana 46616 • 574-393-6100 • sb.school
CORRECTIVE ACTION PLAN FINDING 2025-003 Finding Subject: Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: James Lutaaya, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, jlu...
CORRECTIVE ACTION PLAN FINDING 2025-003 Finding Subject: Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: James Lutaaya, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, jlutaaya@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: VENDOR CLAIMS Accounts payable is ensuring that all required documentation and approvals are completed prior to processing any and all payments. Including verifying that a board approved contract is in place, if applicable. This is in accordance with our IC Manual. The Director of Food & Nutrition (DFN) will review all invoices to ensure expense appropriateness and identify expenditures that cannot be included/paid. DFN will communicate with the vendor to ensure updates are made and a new invoice is created as applicable. DFN will sign the invoice to verify the charges are correct and can be paid. SBCSC terminated its contract with the Food Service Management Company effective June 30, 2026. Corrected Date: 06/30/2026
Name of Contact Person Responsible for Corrective Action: Catherine Schaaf, Executive Director Corrective Action Planned ECO is currently reviewing and revising its Financial Procedures Manual to ensure written accounting and administrative policies and procedures reflect current operations and appl...
Name of Contact Person Responsible for Corrective Action: Catherine Schaaf, Executive Director Corrective Action Planned ECO is currently reviewing and revising its Financial Procedures Manual to ensure written accounting and administrative policies and procedures reflect current operations and applicable Federal requirements. The revised manual will clearly document financial procedures, internal controls, responsibilities, and methodologies for allocating indirect, shared, personnel, and other costs to applicable funding sources. The HR & Finance Director will be responsible for maintaining and implementing the Financial Procedures Manual, ensuring appropriate financial documentation is maintained, and communicating applicable procedures to staff. The Operations Director will monitor implementation of and compliance with established procedures and assist in identifying areas requiring corrective action. The Executive Director will provide overall oversight and ensure identified issues are addressed in a timely manner. ECO will periodically review and update the Financial Procedures Manual to ensure policies and procedures remain appropriate for current operations and applicable requirements. Changes to established financial procedures or allocation methodologies will be documented and approved prior to implementation. Anticipated Completion Date December 31, 2026
Finding 1238780 (2025-005)
Material Weakness 2025
Finding 2025-005 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Allowable Costs/Cost Principles Summary of Finding: During the audit, it was identified that the County charged various drug court expenditures to the SLFRF award throughout the audit period. While certa...
Finding 2025-005 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Allowable Costs/Cost Principles Summary of Finding: During the audit, it was identified that the County charged various drug court expenditures to the SLFRF award throughout the audit period. While certain drug court activities may align with eligible programs objectives, detailed testing determined that SLFRF funds were applied to costs that are not allowable under federal guidance governing the drug court program. These expenditures do not meet the federal eligibility or cost-allowability requirements established for SLFRF funds and therefore constitute unallowable charges to the grant. Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: My office was not part of any discussions when Commissioners approved the Covid-19 project list. My team will work with the Federal Treasury to make sure what Drug Court costs are allowed under the Covid-19 grant. Anticipated Completion Date: August 2026
Finding 1238779 (2025-004)
Material Weakness 2025
Finding 2025-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Period of Performance Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. D...
Finding 2025-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Period of Performance Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: My office will put internal controls in place to make sure all invoices paid under the Covid-19 grant funds are entered into the correct quarter for reporting purposes. The Deputy Auditor will prepare all of the invoices for the grant funds and the Auditor will check to make sure the claims are for the correct period. Anticipated Completion Date: August 2026
Finding 1238778 (2025-003)
Material Weakness 2025
Finding 2025-003 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description o...
Finding 2025-003 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Deputy Auditor will prepare and gather the invoices that need to be uploaded to the Federal Treasury P&E report. The Auditor will double check the P&E report before final submission Anticipated Completion Date: December 2026
Finding 1238777 (2025-002)
Material Weakness 2025
Finding 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery – Procurement, Suspension, and Debarment Summary of Findings: This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2024-002 Prior to entering subawards and covered...
Finding 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery – Procurement, Suspension, and Debarment Summary of Findings: This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2024-002 Prior to entering subawards and covered transactions with the COVID-19 - State and Local Fiscal Recovery Funds, recipients are required to verify that such contractors and subrecipients 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. Due to the U.S. Department of the Treasury's determination that the revenue loss eligible use category does not give rise to subawards, the County was only required to comply with suspension and debarment requirements related to covered transactions. The County did not have procedures in place to verify entities were not suspended, debarred, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: My office will plan to work with the County Administrator on putting procedures in place for the Department entering into the contract or the County Administrator/County Attorney approving the legal wording of the contract to make sure the vendor is not suspended or debarred. Anticipated Completion Date: December 2026
Finding 1238773 (2025-003)
Material Weakness 2025
Finding Number: 2025-003 Finding Title: Eligibility - MAXIS Program: Name of Contact Person Responsible for Corrective Action: Quinn Jaeger, Social Services Director Karen Amundson, Social Services Supervisor Corrective Action Planned: Clay County Social Services will provide targeted training addre...
Finding Number: 2025-003 Finding Title: Eligibility - MAXIS Program: Name of Contact Person Responsible for Corrective Action: Quinn Jaeger, Social Services Director Karen Amundson, Social Services Supervisor Corrective Action Planned: Clay County Social Services will provide targeted training addressing the areas identified in the 2025 audit, with particular emphasis on Social Security number documentation and the accurate verification, documentation, and entry of asset information in MAXIS. Policy updates and related documentation expectations will continue to be reviewed during monthly staff meetings. The lead eligibility worker will continue conducting random internal reviews of MAXIS cases. Review results will be discussed directly with each worker so identified errors can be corrected, expectations clarified, and individualized coaching or additional training provided. Results will also be monitored for recurring error patterns that may require broader training, procedural changes, or performance follow-up. Because the department experienced staff turnover during the audit period, training and quality control will remain ongoing. New employees will receive focused instruction on MAXIS documentation and data-entry requirements, while established staff will continue to receive refresher training and case-specific coaching. Supervisory and lead-worker review will be used to reinforce consistent expectations across the team. Clay County has also begun using Al-assisted policy guidance to help staff more quickly locate and reference relevant state and federal eligibility requirements, This resource supports policy research and staff learning but does not make eligibility determinations or replace required verification, supervisory consultation, human judgment, or employee accountability. In addition, Clay County is partnering with the State of Minnesota to pilot the Mn Benefits-to-MAXIS application process. The pilot is intended to streamline the transfer of application information into MAXIS and reduce duplicate manual data entry. Reducing unnecessary keystrokes should decrease opportunities for human data-entry errors and allow eligibility workers to focus more attention on verifying information and accurately applying program requirements. Clay County will evaluate the pilot's impact and incorporate effective practices into its internal workflow as the state rollout progresses. Anticipated Completion Date: The enhanced training, case-review, and policy-support procedures will be fully implemented by December 31, 2026. Case reviews, staff training, monitoring, coaching, and participation in the state's MnBenefits-to-MAXIS are already underway and will continue to be utilized.
Finding 1238772 (2025-002)
Material Weakness 2025
Finding Number: 2025-002 Finding Title: Eligibility - METS Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Quinn Jaeger, Social Services Director Mika la Wodarek, Social Services Supervisor Corrective Action Planned: Clay County Social Services...
Finding Number: 2025-002 Finding Title: Eligibility - METS Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Quinn Jaeger, Social Services Director Mika la Wodarek, Social Services Supervisor Corrective Action Planned: Clay County Social Services will continue utilizing internal case reviews to monitor the accuracy and completeness of METS eligibility documentation. Reviews will be completed for eligibility workers and discussed directly with each worker. Identified errors will be corrected, and individualized coaching or additional training will be provided as appropriate. Review results will also be monitored for recurring patterns that may require broader team guidance or training. The department will provide continued instruction focused on the areas identified in the 2025 audit, including Social Security number documentation, citizenship verification, and accurate income documentation. Clay County has also begun using an internal Al-assisted policy research tool to help eligibility staff more quickly locate and reference applicable state and federal policy provisions when questions arise. This tool is intended to support efficient policy research only. It does not make eligibility determinations or replace staff judgment, required verification, supervisory consultation, or employee responsibility for accurately applying program policy. These measures will strengthen the existing review process while recognizing the size and complexity of Clay County's METS workload. During 2025, Clay County administered 16,604 active METS recipients. The audit identified four exceptions in its sample of 40 recipient files. Clay County takes each exception seriously and will continue refining its training, policy-reference, case-review, and coaching practices to reduce future errors. Anticipated Completion Date: Al-assisted research tool has been implemented immediately and is currently in use now. All healthcare eligibility staff will have cases randomly reviewed prior to December 31, 2026, with all policy support, monitoring, and corrective coaching continuing after each staff's review but also occurring before December 31, 2026.
Finding Number: 2025-006 Finding Title: Eligibility – METS Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Berit Spors, Health and Human Services Director Corrective Action Planned: McLeod County recognizes the importance of proper information ...
Finding Number: 2025-006 Finding Title: Eligibility – METS Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Berit Spors, Health and Human Services Director Corrective Action Planned: McLeod County recognizes the importance of proper information to be maintained in the METS system to ensure eligibility to qualified individuals for Medicaid. The two cases that were addressed were errors in the METS system caused by periodic date match. It would be helpful if DHS would issue discrepancy reports for the METS system similar to the MAXIS report to catch these errors. County Social Services staff will audit cases periodically to catch these errors in the systems. Anticipated Completion Date: These cases have been resolved as of September 2026.
Finding Number: 2025-005 Finding Title: Procurement and Suspension and Debarment Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Colleen Robeck, Finance Director Corrective Action Planned: McLeod County recognizes...
Finding Number: 2025-005 Finding Title: Procurement and Suspension and Debarment Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Colleen Robeck, Finance Director Corrective Action Planned: McLeod County recognizes the importance of internal controls over Federal Funding to be compliant with the Title 2 U.S. Code of Federal Regulations and is working on a procurement policy to address these issues. There is no misuse of funds, issues with allocation, nor concerns with any handling of funds; however, internal controls assist to assure compliance and will be implemented once complete. Anticipated Completion Date: McLeod County Finance department has drafted the procurement policy and will have the State Auditor’s Office review it for compliance before it is taken to County Board for approval before December 31, 2026.
Finding 2025-002 Procurement, and Suspension and Debarment Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: Management will provide additional training to individuals performing vendor compliance checks and establish internal controls to monitor that vendor...
Finding 2025-002 Procurement, and Suspension and Debarment Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: Management will provide additional training to individuals performing vendor compliance checks and establish internal controls to monitor that vendor compliance checks are being completed accurately and timely. Names of the contact persons responsible for corrective action: Belen Pena, Finance Director. Planned completion date for corrective action plan: November 15, 2026
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