Corrective Action Plans

Management agrees with finding 2021-002 and will implement internal control procedures to perform inventory inspections of federally funded equipment and reconcile the results of the inspections to our equipment listing on a bi-annual basis. We will also implement procedures to add physical tags to federally funded equipment. This inventory will be performed by Storefront’s Technology Supervisor and reported back to the Director of Operations and Financial Consultant for review.

The Authority recognize the importance of maintaining accurate and complete property records for fixed assets purchased with federal funding. A complete fixed asset inventory was conducted in 2023 and is now performed annually. In addition, the integration of the fixed asset system will provide a listing of federally funded assets. System testing is ongoing, with implementation planned for Q2 2026.

Persons responsible for corrective action: Bob Harmon, Superintendent Corrective Action: For a significant portion of the 2021 fiscal year the Quileute Tribe implemented an emergency order as a result of the COVID-19 pandemic. The School was subject to this emergency order and operations were limited to essential activities. The taking of physical inventories was not considered essential. Training relating to the Federal physical inventory requirements will be provided. A physical inventory will be completed in the 2024-2025 fiscal year. Implementation date: June 30, 2025

Finding No.: 2021-018 AL Program: 15.875 - Economic, Social, and Political Development of the Territories Area: Equipment and Real Property Management Questioned Costs: $0 Contact Person(s): Nerissa Benavente Karakaya, CIP COTR Corrective Action Plan: Condition 1: The Division of Procurement Services agrees with this finding. The Division of Procurement Services, Property Management will conduct inventories differently, persons accountable for property will actually perform the Annual Physical Inventory of property under their control based upon printouts furnished by PS - Property Management. Condition 2: The Division of Procurement Services agrees with this finding. A property listing has always been provided to the Agency by Property Management. However, information such as the federal award identification number, source of property, who holds title, percentage of federal participation in the cost of the property, and use of the property relies solely on the Agency. Condition 3: The Division of Procurement Services disagrees with this finding The Division of Procurement Services, Property Management wasn't informed of this audit parameter. For FY2021 number of Transactions/Units processed was 4970 units and the dollar value is $9,526,239. Proposed Completion Date: Ongoing

Recommendation: We recommend the College implement policies and procedures to ensure all property and equipment purchased with federal funds includes such information in the property records to comply with the requirement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The College has begun to explore the Asset Module in the Jenzabar platform, with the goal that Procurement is the first stage of our property tracking. Work continues to be a challenge in this area as we are short staffed. The Business Office Staff will continue to work with the Purchasing staff to identify how best to proceed with this requirement. The College currently has Policies that speak to Assets and the recording of such. The College will strengthen the specifics of what an Asset listing is to include. Name of the contact person responsible for corrective action: Raquel Vigil, Chief Financial Officer, Clarissa Salhus, Finance Manager, Charles Roberts, Purchasing Manager, and Paul Roberts, Fiscal Technician/Receiving Planned completion date for corrective action plan: March 31, 2025

2021-007 – Equipment and Real Property Management Corrective Action: CBNHC will implement the following corrective actions: • CBNHC will immediately conduct a physical inventory of all items listed on its fixed asset lists. • Once a physical inventory has been taken, CBNHC will create an effective property record which includes the description of the property, a CBNHC serial number, the funding source for the acquisition of the property (including the CDFA number), and the relevant title information, acquisition date and cost. • CBNHC will thereafter assign department managers responsible for the custodianship of the said equipment/property. • At the end of each fiscal year, CBNHC will conduct a physical inventory and maintain evidence in its files. Person Responsible: The following individuals will be responsible for the above corrective action plan: • Interim Finance Director (Volelle Zamora) – Is responsible for ensuring the completion of the physical inventory on an annual basis. • Accounting Supervisor (Candyce Guerro) – Is responsible for coordinating the custodial assignment of the CBNHC’s property and equipment. • Accounting Technician (Charlotte Sandoval) – Is responsible for scheduling and performing the physical inventory inspection. Completion Date: CBNHC will perform its physical inventory immediately, with completion by March 31, 2024. Thereafter, the annual inventory will be performed annually before the last day of the calendar year.

We will work the federal government to obtain retroactive approval of the bus purchases as of July 1, 2021. Additionally, going forward any equipment purchases will be reviewed to ensure compliance with all applicable federal equipment pre and post procurement requirements for inventory and maintenance of equipment. See anticipated timeline of the procedures below.

The Authority recognize the importance of maintaining accurate and complete property records for fixed assets purchased with federal funding. A complete fixed asset inventory was conducted in 2023 and is now performed annually.

Management concurs with the auditor’s finding and will implement the auditor’s recommendations. Persons Responsible Sarah Royster, CEO and Aaron Royster, CFO Date of Implementation of Recommendation September 2024

Corrective Action Plan: A SOP must be carried out to implement internal controls to maintain a property report inventory. Contact Person: Zorimar Torres Mercado, Administrator Director Anticipated Completion Date: No later than December 31, 2023

We will work the federal government to obtain retroactive approval of the bus purchases as of July 1, 2021. Additionally, going forward any equipment purchases will be reviewed to ensure compliance with all applicable federal equipment pre and post procurement requirements for inventory and maintenance of equipment.

Federal Agency: U.S. Department of Agriculture CFDA Program: 10.557 Special Supplemental Nutrition Program for Women, Infants and Children (WIC) Award Number: 7NM700NM5 Area: Equipment and Real Property Management Questioned Costs: $-0- Contact Persons: Perlie Santos, Chief Financial Officer; Marie Attao, WIC Program Manager; Cora Ada, Procurement Director Corrective Action: The discrepancy noted was also noted in 2018. The vehicle was delivered in FY 2018 (September), however the invoice was processed in FY 2019 (October), hence the manual Capital Assets listing was only updated. Proposed Completion Date: On-Going

In September 2021, the Authority hired fixed assets manager and two staffs who are responsible for monitoring the fixed assets. The fixed assets team will conduct fixed assets physical count before the end of fiscal year 2024. The result of the physical count will be reconciled to the fixed asset records. Also, a new fixed asset module is set to be implemented in the Fiscal Year 2025.

Recommendation: We recommend the City maintain complete property records, which include a description, serial number or other identification number, source, title holder, acquisition date, cost, percentage of Federal participation in the cost, location, use and condition, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, we recommend the City perform a physical inspection of property acquired with federal funds at least once every two years. City's Response: The City concurs with the recommendation Corrective Action Plan: The City Controller's department will establish procedures over the maintenance of property and equipment records and the Grants Division will create an equipment database and incorporate the City Controller's Office procedures into a new CDBG procedures manual that is created based on the system of internal controls required by OMB's Uniform Guidance (2 CFR 200). These records will include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the cost of the property, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sale price of the property, purchase policies for physical equipment purchased with federal funds and creation of an annual non-physical inventory process and a bi-annual comprehensive physical inventory. In the meantime, the City will take steps to address the specific findings noted above. Planned Implementation Date: June 30, 2021 Responsible Person: Aubrey Relf, City Grants Manager and Rafaela King, Controller