Corrective Action Plans

Name of the Contact Person Responsible for the Corrective Action Plan: Gia Scruggs, City Manager Corrective Action Plan: The private contractor engaged in 2017 to provide government management and operations services staffed the engagement with less than 40 staff including 5 consultants. The City, since the termination of the services contract effective December 31, 2021, has 79 staff involved in City management and operations roles including 5 elected officials. The additional staff, including an additional 5 in accounting/finance, affords the City the capacity to effectively account for and report on restricted funds received in connection with state and federal grant programs. The City Manager staff has grown by an additional 3 staff persons from the contractor level that was assigned in 2021 to monitor grants providing sufficient City staff for current grant programs to be monitored and grant conditions complied with. As the City continues to be eligible for additional state and federal grants, a Grants Administrator position has been added to staff organization and the plan is to organize a grants management team devoted to reporting and compliance assurance as well as seeking to apply for state and federal grant and program funds. Anticipated Completion Date: City Finance Department staff, together with the City Manager, are presently monitoring compliance and reporting relating to state and federal grants and program support. Third-party contractors will no longer be used for these tasks, and as more restricted funds are received by the City, the grants management team will be organized. Presently, the City has only one federal grant program and one state program. The corrective actions have been implemented and are presently operative and in place

Corrective action has been immediately implemented in response to the auditors' recommendation. As financial reporting is still in process of getting to current, the City anticipates findings to be reduced in future fiscal years.

PAX will implement a dedicated cost center in the books and records specifically for tracking these expenses. This will allow for better transparency and accountability in reporting. Additionally, PAX will reconcile against this cost center to ensure that the expenses reported to the grantor and budgetary allocations align with the actual expenditures. Dije Kucana, Comptroller, effective immediately

PAX will implement a dedicated cost center in the books and records specifically for tracking these expenses. This will allow for better transparency and accountability in reporting. Additionally, PAX will reconcile against this cost center to ensure that the expenses reported to the grantor and budgetary allocations align with the actual expenditures. Dije Kucana, Comptroller, effective immediately

Finding No.: 2019-006 Federal Agency: U.S. Department of Health and Human Services CFDA Program: 93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (SED) Award Number: 6U79SM062447-04M001 and 6U79SM062447-04M004 Area: Matching, Level of Effort, Earmarking Questioned Costs: $-0- Contact Persons: Perlie Santos, Chief Financial Officer; Reyna Saures, CGC Director; Vincent Camacho, Grants Administrator. Corrective Action: CHCC does not concur with these findings. CHCC affirms that the Match used to support activities of H71040 and H81040 were from verifiable records, and not from other federal funds. Costs were reasonable and necessary to accomplish the program’s objectives and were provided to and approved by the awarding agency. Finding No.: 2019-006 Continued Furthermore, CHCC sought clarification with SAMHSA and received notice that a match waiver for the Territories of up to $200,000 is applicable to all SAMHSA grants received based on the following federal statute: “Pub. L. 96-205, title VI, Sec. 601, Mar. 12, 1980, 94 Stat. 90, as amended Pub. L. 98-213, Sec. 6, Dec. 8, 1983, 97 Stat. 1460; Pub. L. 98-454, title VI, Sec. 601(b), Oct. 5, 1984, 98 Stat. 1736, subsection (d): ``Notwithstanding any other provision of law, in the case of American Samoa, Guam, the Virgin Islands, and the Northern Mariana Islands any department or agency shall waive any requirement for local matching funds under $200,000 (including in-kind contributions) required by law to be provided by American Samoa, Guam, the Virgin Islands, or the Northern Mariana Islands. Therefore, whatever match amount required per year should be reduced by $200,000 for the Northern Mariana Islands. Summarized below are the required and reported match amounts derived from the Final FFR for Grant SM062447, which included activities for H71040 and H81040 for fiscal year 2019. SOC_CHH61040_Matching_Revised013019.docx SOC_CHH71040 Matching.docx SOC_CHH81040_FY19 Matching.docx SOC_CHH81040_NCE Matching.docx Proposed Completion Date: Not applicable as CHCC does not concur with the findings.