Corrective Action Plans

FINDING 2023-002 Information on the federal program: Subject: Education Stabilization Fund (ESSER) - Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U, 84.425W Federal Award Numbers and Years (Or Other Identifying Numbers): S425D200013, S425U210013, S425W210015 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management 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 Equipment and Real Property Management compliance requirements. Context: T There were three equipment purchases made during the audit period and charged to the ESF grants which totaled $28,289 in the aggregate. During testing of equipment purchases, the following items were noted: For one of three equipment purchases selected for testing, we noted an equipment purchase for computer hardware totaling $9,711 was not properly added to the School Corporation's capital asset ledger at June 30, 2023. The equipment purchase was charged to the ESSER Ill grant award (84.425U). For one of three equipment purchases selected for testing, we noted the equipment purchase was not pre-approved by the Indiana Department of Education (IDOE) within the approved grant application. The equipment purchase was for a middle school gym LED scoreboard in the amount of $5,163 and was recorded under the general supplies - instruction expenditure account for the ESSER II grant award (84.425D) . Purchases for equipment exceeding $5,000 require pre-approved by the Indiana Department of Education (IDOE). Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will take the following corrective action: Northeastern Wayne School Corporation will work to segregate duties to help improve internal controls on all state and federal grants . All grants are written by the Superint endent and/or the Assistant Superintendent. All grants will be reviewed by the treasurer and the Superintendent prior to submission. All future ESSR Amendments will be reviewed by the individual responsible for the grant, reviewed and entered by the treasurer, and signed off on by the superintendent prior to submission . A printed version of the ESSR 111/ ARP Amendmen t with the treasurer's signature and the superintendent's signature will be kept on file. Responsible party and timeline for completion: Trisha Thomas, Treasurer, and Dr. Matthew Hicks, Superintendent. This will be completed by the December 2024 when the ESSR Ill/ARP Grant concludes.

Finding 2023-006 – Education Stabilization Fund – Equipment and Real Property Management Contact Person Responsible for Corrective Action: Nicholas Gron Contact Phone Number: 219-764-6011 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Portage Township Schools is currently tracking Capital Assets on the Form No. 369. The PTS Finance Department will work with other PTS departments to establish a process of completing the capital assets inventory every two years. Anticipated Completion Date: July 2024

Finding 2023-005 – Education Stabilization Fund – Equipment and Real Property Management Contact Person Responsible for Corrective Action: Grant Coordinator and Treasurer Contact Phone Number: 812-347-2407 Views of Responsible Official: We concur with the finding Description of Corrective Action Plan: Segregation of duties for grant compliance requirements. Anticipated Completion Date: On going

Finding 2023-005 Information on the federal program: Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U 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 the Equipment and Real Property Management Requirements compliance requirements. Context: During the testing of equipment acquisitions, it was noted the School Corporation is maintaining and updating property records, however, had not performed a physical inventory of capital assets during the period under audit. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. The Rensselaer Central Schools Corporation will hire a firm to perform a physical inventory. Responsible Party and Timeline for Completion: The Treasurer, Dawn Claussen, will oversee the correction plan which will be implemented by June 30, 2024

Finding No. 2023-002: Inaccurate Property Management Records AL Numbers: Various Program Name: Research and Development Cluster Corrective Action: As noted in the finding, in January 2024, the University conducted a full federal equipment inventory to update property records to ensure accuracy of federally funded equipment. Process Improvements: - The University will update its Equipment Disposal Form to align with the University’s Property Management System Manual. - The Central Accounting team will create and publish equipment tagging, disposal guidance and standards to coincide with the updated Equipment Disposal Form. - Annual federal equipment inventory process will be updated to include escalation procedures. This will require outstanding reports are escalated to the appropriate divisional designee. Expected Implementation: June 30, 2024 Training: - All departments of the University will be sent a memo outlining the updated Equipment Disposal Form and process guide, and inventory escalation procedure. - The Central Accounting team will schedule virtual training with all equipment coordinators. Expected Implementation: October 31, 2024 System Improvement: - The University is researching equipment tagging software alternatives that will enhance tracking capabilities and enable asset tagging at a more granular level. Expected Implementation: March 31, 2025 Contact: Kathy Conrad and Craig Elmore

FINDING #2023-004: EDUCATION STABILIZATION FUNDS (ESF)- EQUIPMENT AND OTHER CAPITAL EXPENDITURES (50000) Corrective Action Plan: If the district would like to use Elementary and Secondary School Emergency Relief Ill (ESSER Ill) Fund (Resource 3213) to support capital expenses, the district will seek prior approval from the California Department of Education. The district will keep the approval on file.

FINDING 2023-003 Finding Subject: COVID-19 Education Stabilization Fund-Equipment and Real Property Management Summary of Finding: There was no internal control procedure to ensure that a capital asset purchased with Federal money was listed in the asset ledger with the serial number or other identification number, the source of funding for the property (including the federal award identification number), percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property. Contact Person Responsible for Corrective Action: Chelsea Yon Contact Phone Number and Email Address: 812-354-8731 cyon@pcsc.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The Corporation Treasurer or the Accounts Payable processor will make copies of any invoices over $5,000 and place them in a folder for addition to the asset listing. Those copies will also include what fund the item was paid from to properly note that Federal money was spent on that purchase. When Adtec performs the physical inventory and presents the listing, the Treasurer will verify that all items and necessary information have been included. Anticipated Completion Date: This is anticipated in being added to the asset ledger in August 2024.

Amani Public Charter School will undertake the following procedure ensure fixed (capital) assets are properly received and inventoried. ● Upon delivery asset will be checked against packing slip. ● Asset will be labeled with an asset tag logged into the inventory program. ● In the inventory program, assets will be assigned to either an individual or specific location. ● As assets are transferred to another user or discarded the asset will be so noted. ● On an annual basis, during the summer the technology coordinator will inventory all current assets. The inventory will be complete before the beginning of the following school year. ● The Director of Operations will oversee the inventory process. The process will be included in the Financial Policies and Procedures Manual, which will be updated no later than April 30, 2024.

2023-002. Equipment and Real Property Management Education Stabilization Fund (ESF) COVID-19: Elementary and Secondary School Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U COVID-19: American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth ALN: 84.425W - 10 - Condition: The District did not include equipment purchased with Federal awards with its current year additions in the District’s capital assets inventory records. Planned Corrective Action: The District will adopt procedures to ensure that equipment purchased with Federal funds is included and differentiated in the District’s capital assets inventory records. Responsible Contact Person: Ms. Sharon Donnelly, Assistant Superintendent for Business Harborfields Central School District 2 Oldfield Road Greenlawn, New York 11740 Anticipated Completion Date: June 30, 2024.

Personnel Responsible for Corrective Action: Jon Nixon, Interim Chief Financial Officer Anticipated Completion Date: June 30, 2024 Corrective Action Plan: The business office and Assistant Vice Presidents of Finance and Budget and Operations will ensure all activity is reconciled on a quarterly basis with proper oversight of the college’s spending policy. The business office is in the process of implementing improved systems with the institution’s ERP over the course of the upcoming fiscal year for enhanced capabilities specifically within the Fixed Assets Module in Colleague (ERP). Included in this improvement will be a description of the property, a serial number or other identification number, the source of the funding for the property (including the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property, where applicable. As of June 30, 2023 these systematic improvements were still in process of being implemented.

Finding 2023-003 - ESSER III - Equipment and Real Property Management Audit Findings: Material Weakness, Other Matters Condition and 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 the Equipment and Real Property Management compliance requirement. Additionally, the School Corporation did not complete a capital asset inventory every two years. Views of responsible officials and planned corrective action: Management concurs with the finding. Although Management maintains a Capital Asset schedule that lists the assets over the $5,000 threshold and includes documentation to verify said assets, a more conclusive addition will include serial numbers, identification numbers, source of funding, and other information in accordance with CFR 200.13 (d). The Corporation had not purchased a school bus with grant money in the past and was not aware that the additional information was required. The issue was never identified in prior audits. A Physical inventory will be taken effective July 2024. Responsible party overseeing corrective action plans and date for completion: Roger Bane, Superintendent Teresa Brewer, Treasurer Finding 2023-003 Effective June 2024

FINDING 2023-003 Finding Subject: Covid 19-Education Stabilization Fund-Equipment and Real Property Management Summary of Finding: Capital Asset purchased with ESSER funds were not added to the Capital Asset listing. Contact Person Responsible for Corrective Action: Beth Quinn Contact Phone Number and Email Address: 260-728-3306 quinnb@nadams.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Ensure that all purchased items over the capital asset threshold are added to the listing and other information required per federal guidelines. Have the District Library Coordinator sign off on Capital Asset entries in Destiny. Anticipated Completion Date: July 31, 2024

2023-003 – Equipment and real property management Cluster: Research and Development Sponsoring Agency: Various Award Names: All awards for 3 campuses with federal equipment expenditures in the SEFA Award Numbers: Various Assistance Listing Titles: Various Assistance Listing Numbers: All awards for 3 campuses with equipment expenditures in the SEFA Award Year: 2022-2023 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Campus One Actions already taken: • Controller’s Office-Capital Accounting had been aware of past due inventories throughout the pandemic caused by on-site restrictions departmental asset custodians faced in their accessibility to complete inventories. Once the federal state of emergency was lifted in May 2023, the Capital Accounting team presented a status update on outstanding inventory counts to UCSF’s Control Points Financial Officers (Control Points) to obtain Control Point’s assistance in bringing awareness of the need to bring inventory counts to current status, Capital Accounting began sending quarterly reports on overdue counts. Since this increased communication, there have been improvements in response rates and action taken by departmental custodians. • In October 2023, Capital Accounting also conducted outreach to departmental asset custodians in the form of a feedback survey with the goal to seek information on how our custodians have returned to work, difficulties they have with the inventories they are assigned, and if they need clarifications on the training surrounding capital asset policy and procedures. As a result of our custodian outreach, Capital Accounting learned that most custodians are on-site and can perform their physical inventories, so the shelter in place restrictions are no longer a barrier in completing these physical inventories. We also identified the need for additional training for departmental asset custodians to ensure ongoing understanding of related policy and procedures, such as physical inventory counts. • Additionally, additional metrics were added to the quarterly Controller’s Office Operational Metrics Report to now include outstanding inventories at a campus departmental level. This provides an opportunity for the Controller and other leaders within central finance administration to have better visibility on our efforts surrounding this key control. Additional Actions to be taken: • A deadline of June 30, 2024, will be communicated to all custodians to bring their inventories up to date. • The Controller’s Office has been developing content and plans to begin hosting bi-monthly town halls in March 2024 with department custodians to provide hands on support in assisting with their counts. We also plan to update our training materials surrounding the tools (Peoplesoft) department custodians utilize for updating asset information with the goal for inventory results to be entered in a more timely manner. By June 2024, we will have completed our first series of live support sessions with our custodians. By September 2024, we will roll out refreshed training materials for departmental custodians. These will be training guides that will be hosted on the Controller’s Office website and will be mandatory during the onboarding of the custodians. • The Controller’s Office will also partner with our Control Points in reviewing the custodian role at each of their departments. We will assess FTEs with the custodian role and evaluate the number of equipment assigned to each custodian. The goal of this custodian role review is to provide insight into the workload of each custodian as we have noted some custodians have up to 1,000 assets assigned, which is an obstacle in the inventory timeliness. In the upcoming months, we will work with each control point area with how the custodian role is assigned within their areas and make any changes if needed. • The Controller’s Office will continue sending quarterly reports to our Control Points on physical inventory status for support in escalation and follow-up with their departments. The Controller’s Office will also continue to track the metrics of late inventories within quarterly reporting to central Finance leadership. For inquiries regarding this finding, please contact Shannon Turner at Shannon.Turner@ucsf.edu who is responsible for the corrective action. Campus Two The University will implement changes to its biennial certification process that ensure adherence to the Uniform Guidance biennial equipment inventory requirements through the following changes: • Update policy to require custodians to complete the Department Inventorial Equipment Certification Form within the first 18-months of the two-year measurement period. • Implement a static measurement period (the beginning and end dates of the two-year period) for each custodian to ensure compliance with the established certification deadlines. • Increase the number of notifications sent to custodians reminding them of their responsibility to complete the certification form to begin on the six-month anniversary of the beginning of the measurement period and will continue to send notifications every 90 days thereafter for the next 12-months (i.e. the 18-month anniversary of the beginning of the measurement period). On the 18-month anniversary, the notification frequency will increase to every 30 days until certification is completed. • Enhance the existing monitoring procedures by providing compliance reports highlighting custodians who are out of compliance with the 18-month performance period and will send notifications to custodians, custodian supervisors, and department heads notifying them they are out of compliance with University policy. A project plan has been developed and the system programmer engaged with an anticipated reprogramming start date of mid-March 2024 and an estimated completion date of June 2024. Biennial submissions will be closely monitored for those under the current two-year process until they are enrolled in the new process. For inquiries regarding this finding, please contact Michael Riley at mriley5@berkeley.edu who is responsible for the corrective action. Campus Three Management has taken the following actions: • Discussed directly with the specific asset custodians the need and requirement to update the equipment management system (AMS) with the last inventory date. o It is to be noted that the two custodians who were part of the audit sample stated they had performed the physical inventory counts from downloaded excel sheet lists. However, they did not finish updating the last inventory date in AMS after completing the physical inventory. o The custodians agreed to do a more thorough job of completing this step going forward in a timely manner, as required. • As a part our normal annual process, we already cover the need to update these dates during the annual equipment management training done each Fall. Additionally, we will place stronger emphasis on this requirement and highlight the importance of this step at our next annual training in October/November 2024 for all custodians. Actions to be taken: We will follow up with e-mails to custodians and approvers who have not updated the last inventory date field. The two specific custodians are currently completing the updates to the last inventory date fields in AMS that they did not previously complete. Custodians will be asked to complete inventories by April 30, 2024. It is to be noted that our current AMS system only facilitates updating the last inventory date in the system one at a time in individual asset screens. It is a manual process that is time consuming for custodians with a large volume of equipment under their custody (hundreds in some instances). Our future inventory system scheduled to go live next year is expected to address this issue and enable more efficient updates once the physical inventory has been completed. For inquiries regarding this finding, please contact Selina Martin at selinamartin@finance.ucla.edu who is responsible for the corrective action.

Responsible Contact Person(s): Andrew McGehee, Director of Business Assets and Cost Recovery Corrective Action Planned: UVA migrated over 28,000 assets from one system to another in July 2022. All assets transferred into the new system with financial data fields intact, but the inventory data fields did not migrate cleanly. UVA/AD inventory specialist, along with other temporary workers allocated a tremendous amount of time reviewing and updating the inventory data during FY23. Additionally, the scanners used in UVA/AD inventory process required outside testing and problem solving from UVA/AD inventory management platform company which impacted business processes. Data validation and all integrations were implemented with the team scanning and performing the inventory process, albeit with a backlog due to the overall asset volume. All conversion data and associated sub-system integrations with both the Financial System of record and inventory technology sub-systems scanners are fully operational with inventory specialist starting a full inventory scan to be completed by the end of FY24, prioritizing any equipment outside of the two-year timeframe. UVA has 19,705 in service assets designated as moveable equipment. 6,809 of those assets have an inventory date outside of two years. Of the total outside the two-year mark, 6,024 or 88.5% of those assets have an inventory date within FY21 and 76% have a date in the 3rd or 4th quarter FY21. Estimated Completion Date: 6/30/2024

Finding 2023 - 005 Equipment and Real Property Management - Native Hawaiian Education – Assistance Listing 84.362A KA concurs with the Recommendation. In conjunction with the search and seating of a permanent School Director (in progress), the Reconstituted Governing Board (“RGB”) as a whole, intends to prioritize the: A) Updating and/or creation of policies (that either don’t exist or aren’t documented); B) Cascading policies to related processes and procedures; and C) Training appropriate staff; and D) Monitoring the practices, to ensure the day to day practices are consistent with and aligned to the policies, processes and procedures. Policy Focus: Grant Management (e.g., accounting, reporting, budgeting, compliance, authorized procurement, inventory, federal draws, federal progress report, communication with federal program office, utilization of curriculum, supplies, equipment in compliance with the specific grant). Any questions regarding this response may be directed to Aumoana Kanakaole-Lato, Reconstituted Governing Board Chair at aumoana.kanakaole@kamalaniacademy.org.

U.S. DEPARTMENT OF EDUCATION AND INDIANA DEPARTMENT OF EDUCATION Charter Schools – AL #84.282 Education Stabilization Fund – AL #84.425C, 84.425D & 84.425U 2023-002 Equipment and Real Property Management (Repeat Finding 2022-002) Significant Deficiency Recommendation: The Auditor recommended the Organization develop a system of internal controls aligned with the applicable compliance requirements to properly track equipment acquisitions in the accounting records and to ensure a physical inventory is appropriately documented when completed. Planned Corrective Action: The Organization has implemented a location software for student devices that tracks the majority of the required information for devices that are live on the network. The Organization concurs that additional internal controls are necessary to ensure all compliance requirements are met. These controls will include exports from the location software for a periodic inventory as well as additional procedures for tracking defective devices. Further controls will be implemented to ensure that the inventory records are easily traced to the invoices retained in the financial records. Similar controls will be implemented to ensure proper tracking and inventory of all assets purchased with federal funds. Michelle Krauter, the Director of Accounting & Finance, will oversee the ongoing implementation of this process to ensure adherence to all compliance requirements.

Corrective Action Planned OHSU agreed the equipment and inventory process can be improved upon and is currently doing so with a several-part strategy: 1. Formally communicating the importance and commitment of safeguarding capital assets. 2. Launching a new web-based application for next biennium inventory. 3. Introducing reporting tools to help custodians of assets and senior leaders monitor inventory completion rates and the efficiency of certain processes, such as asset disposal. 4. Reviewing the current assets to identify any that may need to be written off. Completion Dates 1. 2/12/2024 2. 2/12/2024 3. 2/12/2024 4. Expected by end of FY24

The District's procedure for purchases utilizing federal funds for goods in excess of $5,000 are submitted to the California Department of Education prior to purchase for approval. The District utilized COVID relief funds to upgrade classrooms with equipment consistent in the SVI classroom project. While the components of the SVI project are under the $5,000 threshold for prior approval collectively they are over this threshold. The components being under the $5,000 threshold resulted in an oversight of the needed preapproval for these purchases. Fiscal Services is developing a checklist of required steps in the procurement process when federal funds are being considered to ensure prior approval, if needed, is sought prior to purchase. The checklist will include an area where each component is listed to include delivery cost and installation and will include acknowledgement of whether these components collectively create one asset. This will allow other staff reviewing the checklist to determine if preapproval based on cost may be needed. The checklist will require approval of the department head of the requesting department acknowledging understanding of the federal purchasing requirements for capital expenditure as well as, approval of the Director, Fiscal Services and the District's Assistant Superintendent of Business Services.

FINDING 2023-001 Finding Subject: COVID-19 – Education Stabilization Fund – Equipment and Real Property Management Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the following compliance requirements: Equipment and Real Property Management. The School Corporation presented the equipment and real property records for the ESF grant equipment: however, the records failed to include a description (including serial number or other identification number), 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, location, use, and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR 200.313(d)(1)). Contact Person Responsible for Corrective Action: Jacob Heuchan Contact Phone Number and Email Address: (317)-878-2100; jheuchan@nhj.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Business Manager will work with the Technology Director and the respective departments to ensure the appropriate information is being entered into the Corporation’s equipment and real property records for items purchased through ESF/federal funds. A physical inventory of the property will be taken and the results reconciled with the property records at least once every two years. Anticipated Completion Date: Immediate.

FINDING 2023-004 Finding Subject: COVID-19 – Education Stabilization Fund – Equipment and Real Property Management Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Debbie Van Slyke Contact Phone Number and Email Address: 219-650-5300 x7563, dvanslyke@mvsc.k12.in.us Views of Responsible Officials: We concur with the finding. We learned of this new requirement after the inventory was conducted. Once the guidance was released to the school districts we implemented the plan below. Description of Corrective Action Plan: The School Corporation plans to take the following action: 􀁸 The two ESSER funded capital improvements that were cited will be added to the district ESSER capital assets inventory. 􀁸 The two ESSER funded capital improvements that were cited will be added to the school capital asset inventories. ESSER funded HVAC improvements will be added to Iddings school capital asset list. ESSER funded renovation work at the high school will be added to the Merrillville high school capital assets list. 􀁸 Moving forward, additional capital improvements that were funded through ESSER will be added to the district ESSER capital assets inventory as well as school capital asset lists. Anticipated Completion Date: 􀁸 The two ESSER funded capital improvements that were cited will be added to the district ESSER capital assets inventory by February 29, 2024 􀁸 The two ESSER funded capital improvements that were cited will be added to the school capital asset inventories by July 1, 2024. The district will be working through this process with Kroll. The date of inspection is expected to be early June. 􀁸 Additional capital improvements that were funded through ESSER will be added to the district ESSER capital assets inventory as well as school capital asset lists as they are completed.

ACOE updated the procurement and statement temp to match the requirements.

Finding 2023-002 Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024. Contact Person: Nicole Anderson Leonard, Vice President, Research and Vice Dean Anticipated Completion Date: June 30, 2024

EQUIPMENT AND REAL PROPERTY MANAGEMENT Department of Health and Human Resources (DHHR) Assistance Listing Number 93.323, COVID-19 93.323 Due to the number of administrative and programmatic offices within the DHHR and the fact that those offices are located throughout the State, the DHHR does not conduct a mass physical inventory whereby one office or person at the central level views all of the reportable assets under the DHHR’s jurisdiction. Instead, the DHHR Office of Operational Administration compiles inventory reports for each office using the fixed asset module within wvOASIS, which is the statewide accounting system. The inventory reports indicate all tagged and entered assets under each office’s location code within the DHHR. Once the reports are compiled, the Office of Operational Administration sends a report to each applicable office within the DHHR and asks the offices to locate and verify the assets in the report. The lack of documentation indicated by the auditors is due to the fact that some DHHR offices throughout the state do not return the verification to the Office of Operational Management. For the next physical inventory of fixed assets within the DHHR, which will be for the year ended June 30, 2024, the Office of Operational Administration will monitor and regulate each office more stringently and will increase its efforts to ensure that each office completes the verification and returns it to the Office of Operational Administration in a timely manner. For offices that do not respond within a timeframe deemed reasonable by the Office of Operational Administration, they will inform and request assistance from a higher level of authority within the DHHR, such as the Executive Director of Operations.

FINDING 2023-005 Subject: COVID-19 – Education Stabilization Fund – Equipment Summary of Finding: The School Corporation utilized Education Stabilization Funds to pay for equipment. The equipment was not included in the capital asset records. The capital asset listing provided did not identify which assets were purchased with federal dollars. Recommendation: We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure asset records include all the necessary information and new assets are added. Contact Person Responsible for Corrective Action: Casey Howard Contact Phone Number: 574-842-3364 x806 Views of the Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Our corporation has a company that updates our fixed assets every two years. Between the two years our Deputy-Treasurer with the assistance of the Treasurer will work in an excel document to track all additions/deletions, identification, location, etc. All assets regarding equipment will be identified if purchased with federal grant funds. Anticipated Completion Date: February 2024

Single Audit Report: Valley Stream Union Free School District 24 Period Covered – July 1, 2022 – June 30, 2023 Part III: FEDERAL AWARD FINDINGS CORRECTIVE ACTION PLAN Audit Recommendations: 1) We recommend that the District implement a system of communication and a review process surrounding capital asset additions to ensure the completeness and accuracy of capital asset records. In addition, we recommend the District update their capital asset Board of Education policy to expand on the capitalization of like-kind capital assets in order to properly align with their current practices. Implementation Plan of Actions: 1) The District will implement a monthly review document to verify new assets and their tagging towards the inventory. Each applicable department/administrator will sign off on the document. A dedicated person will enter all reviewed assets in the asset tracking system. Before year-end, all assets inventoried will be reviewed separately by the Business office. In addition, another post-check will be performed by the accountant at year-end. The Board of Education will also continue to update policy in alignment with practice. Implementation Dates: 1) March 1, 2024 Person(s) Responsible for Implementation: Accountant (Cullen & Danowski, LLP), Assistant Superintendent for Business (Dr. Jack R. Mitchell)