Corrective Action Plans

FINDING 2022-003 Contact Person Responsible for Corrective Action: Shannon Fritz, Corporation Treasurer, Cathy Rowe, Superintendent Contact Phone Number: 219-567-9161 Views of Responsible Official: We concur with the audit findings. We have initiated corrective action as referenced below. Description of Corrective Action Plan: The district will be soliciting a capital assets tracking vendor that will ensure all capital assets are tracked and updated. Anticipated Completion Date: March 15, 2023 Cathy Rowe, Superintendent Shannon Fritz, Corporation Treasurer Date: 2-27-23 Date: 2-27-23

Charter Schools ? AL #84.282 Education Stabilization Fund ? AL #84.425C, 84.425D & 84.425U 2022-002 Equipment and Real Property Management (Repeat Finding 2021-002) 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. The reorganization of the Business Office described above in 2022-001 will allow the Controller oversee the implementation of these controls and periodic internal audits to ensure adherence to all compliance requirements.

FINDING 2022-001 Contact Person Responsible for Corrective Action: Dianne Lacy Contact Phone Number: 812.282.7753 Views of Responsible Official: We concur with the finding Description of Corrective Action Plan: An effective internal control system, which would include the segregation of duties was not in place to ensure compliance with requirements related to the federal grant agreement and the Equipment and Real Property Management compliance requirement. The Corporation Treasurer is going to contact vendors that work with school corporations to collect documentation that is incorporated to support the Capital Assets Ledger (Form 369). A vendor will be selected to provide the following: a. Collect and archive invoices for capital purchases according to district guidelines. Record assets that meet or exceed the inventory threshold amount. b. Validate land/property descriptions/documents as recorded in the County Assessor?s Office. c. Verify accuracy of Corporation owned vehicles (buses, trucks, etc.) including model, year, VIN, purchase date, purchase price. d. Conduct on-site inventory of each building/location. e. Affix bar code labels to pertinent assets that meet the threshold. f. Incorporate accumulated depreciation calculations as required by SBOA. g. Assemble information into a Capital Assets Ledger, using the SBOA Form 369 format. Anticipated Completion Date: August 31, 2023

The District of Columbia Public Schools (DCPS) agrees with the conditions and recommendations of this finding. The DCPS corrective action plan includes the following: ? DCPS will establish a link between the various systems to ensure purchasing and receiving records are attached to individual asset tags or other identifiable information in our asset management system. Effective March 23, 2023, TIPWeb has been updated reflect these changes. See Corrective Action Plan for chart/table

This was the first year for a new person to control the tracking of assets that need to be added or deleted from the inventory list. The issue has been corrected and all assets are tracked as invoices are paid for inventory or improvements over $5,000. The assets noted from FY2022 will be added to the inventory list for FY2023.

Views of Responsible Officials and Planned Corrective Action The HPU Fixed Asset Accountant, Federal Grant Project Investigator and Office of Sponsored Projects will work collaboratively to ensure that the physical inventory of all fixed assets which were acquired using federal funds are conducted and completed periodically. This physical inventory monitoring will be done at least, every two years. The team will work on getting all departments covered in the periodic inventory to confirm that the fixed asset listing is complete, updated and maintained. Person Responsible: Fixed Asset Accountant, Respective Project Investigator, Assistant VP of Office of Sponsored Projects and Manager of Office of Sponsored Projects. Targeted Correction Date: June 30, 2023.

Patriot Preparatory Academy will implement an inventory management system to classify and track all capital assets.

Name of Contact Person: Alyssa McDermott Corrective Action Plan: Over the past year staff has ensured that the inventory is up-to-date and accurate. Inventories were performed in 2022 and 2023 in preparation for the single audit. Now that the division of housing and community development is fully staffed, the inventory can be shared amongst staff as well as uploaded to the shared drive to ensure it can be accessed in the event of staff turnover Proposed Completion Date: 6/30/23

FINDING 2022-004 Subject: Special Education Cluster ? Equipment 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 requirements of the Equipment and Real Property Management compliance requirement. Context: The School Corporation is a member of a joint service cooperative (Cooperative). The Cooperative operated the special education programs on behalf of the School Corporation and managed the special education grant funds. Because the grant agreements were between the Indiana Department of Education and the School Corporation, the School Corporation was ultimately responsible for compliance with the grant agreement and the Equipment and Real Property Management compliance requirement. During fiscal year 2021, the School Corporation paid membership fees to the Cooperative out of federal Special Education funds. These membership fees made up approximately 48% of the total federal expenditures reimbursed during fiscal year 2021. The Cooperative accounted for state, local, and federal funds in a single fund. The fund did not separately account for each of the funding sources. This made it indeterminable whether equipment purchases were made by the Cooperative with federal funds, or to identify equipment expenditures by federal program, award number, or years. Therefore, we could not test compliance for approximately 48% of the expenditures. The Cooperative did not have adequate procedures in place to ensure that equipment purchased with grant funds was properly recorded and maintained in the School Corporation's equipment records. The Cooperative also did not maintain records for the disposition of equipment purchased with federal grant funds. The lack of internal controls and noncompliance were systemic issues, which occurred specifically during fiscal year 2021. No reportable findings were noted for fiscal year 2022. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Members of the cooperative are no longer paying their cooperative member fees with federal funds. This was resolved effective 7/1/2021. Responsible Party and Timeline for Completion: Zach Dennis, CFO, 7/1/2021

FINDING 2022-007 Contact Person Responsible for Corrective Action: Julia Smith, Business Manager Contact Phone Number: 317-788-4481 Views of Responsible Official: We concur with the findings Description of Corrective Action Plan: The Director of Operations and the Business Manager will implement internal controls to verify all equipment purchased with federal dollars will be marked on the documentation. Anticipated Completion Date: January 2023

RESPONSE TO AUDIT FINDING #2022-002: EDUCATION STABILIZATION FUND DISCRETIONARY GRANTS- SPECIAL TESTS AND PROVISIONS (50000) The charter has already submitted the capital expenditure request form to COE and is awaiting approval. The charter will review all required compliance requirements for all new federal funding before purchases are made. The charter anticipates receiving the approval by December 31, 2023.

2022-005 Equipment and Real Property Management Type of Finding: Noncompliance, Significant Deficiency Repeat Finding: Same as prior year financial statement finding 2021-003 Condition/Context: The School did not perform a full physical inventory within the two-year period ending June 30, 2022. Action planned in response to finding: The School will implement policies and procedures that ensure a full physical inventory at least every two fiscal years and the results of the inventory are reconciled with the records in the financial software. Additional training will be provided for staff responsible for inventory. Planned completion date for corrective action plan: For the period ending June 30, 2023. Name of the contact person responsible for corrective action: Frances Stevens, Business Technician; Lillian Benallie-Rock, Interim Principal

FINDING 2022-001 Contact Person Responsible for Corrective Action: Karen Scalf, Chief Financial Officer Contact Phone Number: (765)973-3406 Views of Responsible Official: Richmond Community Schools agrees with the finding. Departments under new leadership have not been maintaining the most appropriate records with regard to inventory of school equipment and technology. Description of Corrective Action Plan: The Chief Financial Officer will meet with Superintendent?s Cabinet, Directors of Grant Administration, and Technology to review the most appropriate record keeping practices and expectations for maintaining accurate and detailed inventories of school equipment, textbooks, technology, furniture, etc. The inventory list is to be provided to the Business Office on or before June 30 of each calendar year and will be used to improve the information contained in the corporation fixed asset report. The fixed asset report will be updated at least every other year per Board Policy. Anticipated Completion Date: April 7, 2023

District will review federal claims for equipment purchases items greater than $5,000 and life longer than a year and capture equipment items into the property records as they are received.

Finding 2022-001 Contact Person Responsible for Corrective Action: Matthew Irwin, Assistant Superintendent Contact Number: 812-876-7100 View of the Responsible Official: Richland-Bean Blossom C.S.C. concurs with finding 2022-001. Description of Corrective Action Plan: The School Corporation will develop Internal Control procedures over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. The School Corporation will maintain and include detailed information of Equipment and Real Property records required per the federal compliance supplement document. This information will be reviewed and implemented by the Corporation Treasurer, Assistant Superintendent or another authorized staff member. Anticipated Complete Date: Implementation of Corrective Action Plan will be set in places as of March 2023. Signed: Dated: 2-8-23 Dr. Jerry Sanders Superintendent Signed: Dated: 2-8-23 Matthew Irwin Assistant Superintendent

As part of the Head Start program termination by the grantee, the capital assets subsidiary ledger has been updated by the Municipality?s finance department staff. It is important to comment that during the fiscal year 2021-2022, the Program employee in charge of the capital assets administration was removed from his position, as requested by the grantee, and, in an interim basis, another employee was assigned with such functions, in additions to his regular functions. Implementation Date: September 30, 2023 Responsible Person: Mrs. Yadixa Ramos Finance Department Director

The Strong - Huttig School District is committed to addressing and correcting these findings. The District will contact the Arkansas Division of Elementary and Secondary Education for guidance regarding this matter and implement proper controls over program expenditures. The District will also ensure all capital asset records are updated, and maintained moving forward. During the 2021-2022 school year the Bookkeeper and the Superintendent's Administrative Assistant both retired. Unfortunately the incoming replacements did not get a chance to train with them prior to their departure. Institutional knowledge, files, information, and procedures that should have been transferred to the new employees did not happen as planned. Our goal as a district is to ensure proper training for new employees, and administrative procedures and processes will be transferred better in the future.

FINDING 2022-003 Contact Person Responsible for Corrective Plan: Alva Sibbitt, Jr., Superintendent Contact Phone Number: 812-547-2637 Views of the Responsible Official: We concur with the findings. Description of Corrective Action Plan: The Superintendent will make sure to keep the Capital Asset listing up to date. Anticipated Completion Date: February 2023

For the fiscal year under audit, all federally funded items have been inventoried and tagged as required. In subsequent fiscal years, tangible items purchased with federal funds will be inventoried and tagged appropriately.

Lawton Public Schools failed to identify ?Construction in Progress? paid for with federal funds as federal. Procedures will be updated to ensure ?Construction in Progress? paid with federal funds is identified and recorded as federal immediately rather than at the completion of the construction. While this finding is identified as a repeat finding from FY2021 (2021-006), the prior year was in reference to fixed assets while this year?s finding is in reference to ?Construction in Progress?.

FINDING 2022-010 Contact Person Responsible for Corrective Action: Nicole Wolverton, CFO Contact Phone Number: 219-881-5536 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: A policy and procedure will be created to ensure that all equipment and real property is recorded in an asset management system for capital improvements. Assets will be entered based on funding source, acquisition date, cost, and federal award number. Anticipated Completion Date: Gary Community School Corporation will implement this procedure by September 2023.

The City has not, in recent years, purchased any inventory with CFDA# 14.228 Disaster CDBG funding and has disposed of all but three (3) inventory items purchased with this funding. The City provided to the auditors the completed physical inventory documentation and the auditors deemed the issue as resolved. The City will continue to implement and execute its controls in place to ensure that a physical inventory is taken at least once every two years. Responsible Party Ronald Fornerette, Jr. ? Director of Compliance. Completion Date: January 30, 2023

Auditors? Recommendation - We recommend the College enhance the design of its control activities and policies and procedures should be developed to ensure physical inventories are taken at least once every two years and that they create a tool to assist in tracking and maintaining equipment purchased with federal funds. Views of Responsible Officials and Planned Corrective Action - The College does maintain a listing of inventory purchased with federal funds; however, the inventory was not sufficiently and accurately maintained due to staff turnover. The College is reviewing current policies and will modify those as needed. The College plans to conduct a physical inventory of all capital assets and those assets procured with federal sources. Responsible Official - Denise Montoya, Vice President for Finance & Administration, Theresa Storey, Chief Financial Officer, Scott Stokes, Chief Information Officer, and Josephine Velasquez, Procurement Timeline and Estimated Completion Date - June 30, 2024

17-020-0180-26 CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS Year Ending June 30, 2022 Corrective Action Plan Finding No.: 2022-_ 002__ Condition: The District's property records did not include the date purchased and serial numbers for equipment purchased with Education Stabilization Funding. Plan: The District will assign an employee independent of the preparer, preferably with knowledge of applicable federal grant expenditures, to review the District's property records on a periodic basis to ensure the listing meets the requirements of 2 CFR section 200.313(d)(1). Anticipated Date of Completion: 06/30/2023 Name of Contact Person: Hillary Stanifer Management Response: Management will implement the corrective action plan for the year ended June 30, 2023.

Recommendation: We recommend the Entity enhance the design of its control activities and policies and procedures should be developed to ensure physical inventories are taken at least once every two years and that they create a tool to assist in tracking and maintaining equipment purchased with federal funds. Action Taken: Management agrees with the finding. We need to create an Asset Policy manual that will address procedures for managing and recording equipment inventory. Property records must include a description of the property, program location, serial number or other identification number, source of funding for the property, who holds the title, the acquisition date, cost of property, percentage of federal participation in the project costs for the federal award under which the property was acquired, use and condition of the property as well as the ultimate disposition data including the date of disposal and sale price of the property. Physical inventory must occur at least every two years and be reconciled with the property records. The Asset Policy will also include a control system to ensure adequate safeguards to prevent loss, damage, and/or theft of the property as well as adequate maintenance procedures to keep the property in good condition. Any loss, damage and/or theft must be investigated. Proper sales procedures will also be included in the Asset Policy. Due Date of Completion: June 30, 2023 Responsible Official: Katie Rodriguez, Accountant and Michael Bartlett, CFO