Corrective Action Plans

FINDING # 2022-021No finding in prior yearThe Department of Children and Families (DCF) will review and enhance its procedures and controls to ensure that expenditures charged to the program are incurred within each grant award?s specified period of performance.Further, as the federal SSBG grant award cited has a period of performance that remains open through September 2023, DCF has adjusted the four transactions that were posted incorrectly to another available funding source and ensured that all transactions presently recorded are now in compliance and within the specified period of performance.COMPLETION DATE/CONTACT PERSON Fiscal Year 2024Steven M. Dodson(609) 888-7555Steven.Dodson@dcf.nj.gov

FINDING # 2022-016No finding in prior yearDue to the COVID-19 pandemic and the resulting remote teleworking period that was in place at DOH during the FY 2022 audit period, some payment documents were approved remotely without physical documents in hand, and the payment documentation for the 17 of 60 ELC general disbursement transactions examined were either not delivered to the office to be filed yet or have been delivered but misfiled. DOH Central Accounts Payable will review and improve its current procedures and controls to ensure all physical payment documents are reviewed, approved, and filed correctly under the current hybrid remote working conditions in place now since the pandemic ceased.COMPLETION DATE/CONTACT PERSON April 11, 2023Michael Palasciano(609) 376-8518Michael.Palasciano@doh.nj.gov

FINDING 2022-003Contact People Responsible for Corrective Action: Lynn Leininger, Business Manager and AllisonKellogg, Director of Special EducationContact Phone Number: (260) 367-3677Whitko Community Schools concurs with the finding and will implement a dual check system with theBusiness Manager and the Director of Special Education. All proportionate money earmarked fornonpublic school expenditures under the Special Education Cluster will be continually monitored from theapproval through the end of the grant to insure all compliance requirements are met.The completion date for this corrective action will be July 1, 2023.

Finding Number: 2022-002Planned Corrective Action: Cleveland Play House had extensive turnover during the 2022 fiscal yearwhich resulted in several vacancies, including the Director of Finance position, for a significant portion ofthe year. As a result, many of the reports that are standard practice in our organization were not beingcompleted. In addition, the filing of certain documentation to support expenditures was not being doneconsistently. The Director of Finance position was filled in the fall of 2022. As a result, documentationof allowable expenditures is being addressed for the fiscal 2023 audit.In addition to turnover, the organization transitioned to a new general ledger system with a new chartof accounts in fiscal year 2022. As a result of this transition and the vacancies mentioned above, certaindata pertaining to the federal programs was not being captured. Management has informed all staff ofthe requirements to track federal programs within the general ledger accounts.Anticipated Completion Date: June 30, 2023Responsible Contact Person: Erica Tkachyk, Director of Finance

Finding 2022-003Subject: Child Nutrition Cluster ? Allowable Costs/ Cost PrinciplesFederal Agency: Department of AgricultureFederal Programs: School Breakfast Program, COVID-19 School Breakfast Program, National School LunchProgram, COVID-19 National School Lunch Program, Summer Food Service Program for Children, COVID-19Summer Food Service Program for ChildrenAssistance Listings Numbers: 10.553, 10.555, 10.559Compliance Requirement: Allowable Costs/ Cost PrinciplesAudit Findings: Material Weakness, Other MattersContact Person Responsible for Corrective Action: Julie Dodd, TreasurerContact Phone Number: 765-348-7550Views of Responsible Official: We concur with the finding of the auditorDescription of Corrective Action Plan:This was a one time occurrence attempting to correct a previous year oversight. Moving forward, noindirect costs will be charged or paid outside of the correct time period for the fiscal year.Anticipated Completion Date: Completed

FINDING 2022-004Contact Person Responsible for Corrective Action: Timothy LaGrangeContact Phone Number: 812-683-3971Views of Responsible Official: We concur to the finding.Description of Corrective Action Plan: Southwest Dubois and the DSP Exceptional Child?s Co-op have created a systemof internal controls that will ensure reporting compliance requirements are met. The Co-op has developed a shared file foreach of their staff that is participating gin the requirements for the proportionate share. This will be a detailed list of datesand duties that were applied to the proportionate share of each member school corporation. This list will be printed andattached to the grant records and can also be provided to each member corporation if requested.Anticipated Date of Completion: May 2023

FINDING 2022-003Contact Person Responsible for Corrective Action: Kim DeVaney/Robin PopejoyContact Phone Number: 317.758.4172Views of Responsible Official: We concur with the finding.Description of Corrective Action Plan: Those procedures and errors were discussed and adjustments have beenmade. To prevent errors the Payroll Specialist will make sure the employee timesheets that was signed off by the Directormatches with the hours they were approved to work when hired.Anticipated Completion Date: February 2023

Finding 2022-003 - Allowable Activities or Unallowed, Allowable Costs/Cost Principles and CashManagementMaterial Weakness in Internal Control over Compliance and Material Noncompliancefinding Summary: During the audit, the appropriate documentation for grant expenditures to supportthe drawdown from grant funding was not readily provided. In addition, the process to ensure thatgrant expenditures are allowable and reconciled was not clearly communicated to appropriate partiescausing expenditures to be inappropriately claimed in the wrong fiscal year.Responsible Individual: Chief Financial OfficerCorrective Action Plan; We have designated a member of management to participate in monthly,quarterly, or annual reconciliations as proposed by the auditors. The existing controls will be clearlycommunicated to ensure that program expenditures are made prior to requesting reimbursement offunds.Anticipated Completion Date: Ongoing

Finding 2022-003Material weakness in internal controls over compliance for allowable activities and costs and material non-compliance inthe Coronavirus State and Local Fiscal Recovery Fund program.Contact Person(s):Nicholas Lee, Chief Financial OfficerCorrective action planned:The Organization will provide additional training to employees responsible for incurring costs in accordance with 2 CFR200.403. Additional resources have been assigned to review and ensure documentation and policies are retained to supportthe distribution of charges between projects. Anticipated completion date:June 30, 2023

View of Responsible Officials: A former Board member with finance and operations experience has been tasked with reviewing financial policies and procedures to ensure compliance in all areas. Policies and procedures will be updated with new processes. To date there have been two changes implemented. Finance staff must now attach electronic copies of invoices within the accounting system to corresponding transactions in order to process payment. In addition, a report of credit card charges missing required documentation is circulated to management monthly, with follow-up to the individual purchasers. Training for all members of the department will occur on an ongoing and regular basis to ensure best practices are being upheld. Policies and procedures and/or the Financial Procedures Handbook will also be updated to reflect the changes.

2022-007 – TITLE I – INADEQUATE SUPPORTING DOCUMENTATION– ALN 84.010 – SIGNIFICANT DEFICIENCY & OTHER NONCOMPLIANCE FINDING TYPE: SIGNIFICANT DEFICIENCY & OTHER NONCOMPLIANCE Finding 2022-007 Federal Program: Title I ALN: 84.010 Federal Award Number(s) and Year(s): S010A200034, 2022 Federal Agency: U.S. Department of Education Questioned Cost: $7,591 Condition: We were unable to verify whether 6 of 60 expenditures totaling $7,591 were for costs allowed under the Title I grant. When projected against the total population of $1,628,283, the total projected error is $15,939. Corrective Action Plan: Agreed. WBSD#7 created a new Grants Coordinator position in July 2023 with one of the specific responsibilities for that position being oversight of all Federal Title programs. This oversight responsibility includes monitoring expenditures to ensure all expenditures are allowable within the parameters of each program and also that proper documentation for those expenditures has been maintained. Anticipated Completion Date: • Fiscal Year 2024

No journal entries will be made without supporting documentation.

All journal entries are entered by the CSFO and signed by the Superintendent.

Capital Area Community Action Agency's use of the Payroll Protection Program loan forgiveness resulted in unearned revenue from grantor. Capital Area Community Action Agency will pursue working with the Office of Head Start regarding use of those funds within the project period.

U.S Department of Health and Human Services FALN: 93.926 Federal Award Identification Number: 5 H49MC00119-21-00 / 6 H49MC00119-20-01 2022-006 – Period of Performance – Significant Deficiency Recommendation: We recommend that internal controls be strengthened and processes implemented to ensure all expenses include supporting documentation/invoice indicating period of performance. Grantee Response and Corrective Action Plan 2022-006: The Center for Black Women's Wellness has proactively updated our credit card policy in 2022. The CEO reviews the credit card statement monthly for discrepancies and allowable costs. Additionally, credit card holders are responsible for reviewing their credit card statements monthly for discrepancies and allowable costs. This measure aligns with our broader fiscal management improvements, which also involve the engagement of a Contractual CFO in April 2024 to oversee and refine our financial operations. These initiatives are part of our commitment to maintaining rigorous financial integrity and ensuring that all transactions are transparent and compliant with regulatory requirements. Additionally, we have resolved past documentation issues, such as those arising from the abrupt departure of an employee, by implementing robust procedures to avoid similar incidents in the future. Responsible Parties: Jemea Dorsey, CEO Date Corrected: April 30, 2024

At the onset of the pandemic, certain employees were sent to work remotely. During this period of time, the Organization experienced larger than usual turnover, including the CFO position, which remained unfilled for a significant period of time. Due to these factors, many employees were forced to handle new responsibilities for the first time in a new remote setting, as the Organization worked diligently to continue operations. Since many of the shows were being cancelled or modified from their traditional format, smaller projects related to design buildout, maintenance, and advertising were taken on. Many of these projects involved smaller retail purchases for which documentation was not properly retained. The Organization acknowledges the findings and has since hired a new CFO and instituted policies and procedures surrounding documentation of all cash disbursements and expenditures of federal awards.

1. The Center will retain evidence of competitive bidding, unless an emergency or other situation precluding the delay of competitive bidding has arisen (in which case, the Center will retain the evidence and rationale justifying the sole source contract). The Center will retain verification of suspension and debarment for all potential contract service providers. The Center notes that one of the contracts selected for testing arose during an emergency situation (flooding). 2. CFO will ensure that all invoices and supporting documentation are retained. ED and/or Director of Legal Services (depending on amount of expenditure, both may be required) will approve electronic payments in Bill.com. Approval of expenses paid with paper checks will be indicated by signature of checks after reviewing accompanying support.

The School System concurs with the auditor’s findings and recommendations. The Infants and Toddlers Supervisor will conduct monthly reviews of outstanding purchase orders in Oracle, addressing issues promptly with the Business Operation Officer/Financial Analyst. Professional development sessions will be attended to enhance invoice scrutiny for allowable expenses within the grant period. Quarterly reminders and Financial Quarterly Review meetings will be instituted for supervisors, ensuring timely action on outstanding purchase orders. Following will be implemented: 1. Infants and Toddler Supervisor will hold monthly meetings with the Financial Analyst and the secretarial staff to ensure consistent actions are taken when generating purchase orders and processing invoices. 2. The Infants and Toddler secretary will review invoice dates against contracts and purchase orders to ensure they fall within grant timelines before submitting them to the supervisor for signature. 3. Infants and Toddler Supervisor will confirm that purchases made with grant funds are allowable and within the designated grant period. The Supervisor will cross-reference invoice dates against grant periods before signing and sending to accounts payable. 4. The infants and Toddler Supervisor will confirm the work being invoiced has been completed and vendor details are checked, and dates verified. 5. Grant Accountants will provide transaction detail reports (at least quarterly). The Infant and Toddlers Coordinating Supervisor will review and sign-off on the quarterly transaction reports. 6. The Financial Analyst will meet monthly with the Infants and Toddler Supervisor and Coordinating Supervisor to ensure grant allowable expenses are adhered to and invoicing is updated and falls within grant-specific timelines.

2022-002 Activities Allowed or Unallowed U.S. Department of Labor Assistance Listing Number 17.258/17.259/17.278 Recommendation: We recommend that the Board design and implement controls to ensure that all charges to federal programs are adequately reviewed and approved prior to payment, and that adequate supporting documentation for all federal program charges is maintained. Action Taken: The Board is taking adequate action to review and approve all charges to the federal programs. The Board’s steps have been reviewed with Workforce WV and has been approved our procedures. Supporting documentation is kept both in physical and electronic forms. Each check the Board distributes has an approved purchase order attached, (if applicable), invoice, or if it is a monthly recurring charge, statement or bill attached and once the bill is entered into our system and the bill is paid, the check has the Executive Director’s initials and date showing it is approved in our accounting system. Also, if the expenditures are questionable, we will receive approval before submission of the bill from our liaison in the Workforce WV office.

Significant Deficiency in Internal Control Over Compliance and Noncompliance – A. Activities Allowed or Unallowed and B. Allowable Costs/Cost Principles Recommendation: The auditor recommended FSA implement procedures for all employees who have payroll claimed under federal programs to maintain detailed timecards or time studies to support hours worked under each federal program. Planned Corrective Actions: Family Service Association of Howard County, Inc. (FSA) will implement procedures and maintain time cards and time studies for employees who have payroll claimed under the federal programs to be in compliance of federal grants beginning April 2024.

Community Partners acknowledges that documentation to support expenditures was not consistently kept across all federal grants. Current leadership has addressed this issue by implementing documentation standards across all federal grants. Furthermore, through the implementation of NetSuite, expenditures will be fully supported and approved by staff before posting. The person responsible for the corrective action detailed above will be Joyce Williams, Chief Financial and Operations Officer, (213) 346‐3202. We anticipate corrective action will be completed by June 30, 2024.

FA 2022-001 Improve Controls over Employee Compensation Compliance Requirements: Activities Allowed or Unallowed Allowable Costs/Cost Principles Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education AL Numbers and Titles: 10.553 – School Breakfast Program 10.555 – National School Lunch Program Federal Award Number: 225GA324N1199 (Year: 2022) Questioned Costs: $41,309.92 Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over the employee compensation process as it relates to the Child Nutrition Cluster. Corrective Action Plans: The Hancock County School District has updated the internal controls over the employee compensation process as it relates to the Child Nutrition Cluster and has corrected the employee codes for the director and former director to ensure that the correct employees are paid from CNC. Estimated Completion Date: June 30, 2024 Contact Person: Matthias Jones, Finance Director Telephone: (706) 444-5775 Ext. 125 Email: mjones@hancock.k12.ga.us

The Board of Education has now regained control of the District and moving forward, the District will closely monitor grant funded expenditures. The District utilizes its Grants Council to review grant awards and develop plans for expenditures. This includes ensuring the expenditures are necessary and reasonable for the grant program in accordance with 2 CFR § 200.403(a) and allowable under the grant guidelines.

FA 2022-001 Improve Budgetary Controls over Expenditures Compliance Requirement: Activities Allowed/Unallowed Allowable Costs/Cost Principles Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: COVID-19 – 84.425D – Elementary and Secondary School Emergency Relief Fund COVID-19 – 84.425U – American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 – 84.425W – Elementary and Secondary School Emergency Relief Fund Federal Award Number: S4250200012 (Year: 2020), S4250210012 (Year 2021), S425U210012 (Year 2021), S425W210011 (Year 2021) Questioned Costs: $279,314.22 Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over expenditures as it relates to the Elementary and Secondary School Emergency Relief Fund program. Corrective Action Plans: Thomasville City Schools has amended any contracts with companies that provide services to allow the District to pay ESSER retention supplements when the Thomasville City Schools employees receive them. Estimated Completion Date: August 10, 2023 Contact Person: Stella M. Smith, CPA Telephone: (229) 225-2600 Email: smiths@tcitys.org

In September 2023, a "AP Processing Guidelines & Concur Reference Guide" document was introduced to ensure timeliness, completeness and propriety of books and records. Full dissemination to all Program Managers in connection with in-depth training sessions is still work in process and a result of the number of personnel to be trained, combined with limited bandwidth by resources assigned to training. The Concur Expense reporting module is being integrated within the ERP environment, enabling detailed chart of accounts to reflect GL coding by Segment, Grant, and Program. All journal entry support is attached to accounting entry in the ERP. The journal entry is entered by someone on the accounting team and approved by the Controller. Responsible: Annette Nastri, Timing: June 30, 2024