Corrective Action Plans

U.S. Department of Health and Human Services Allowability Child Care and Development Block Grant – Assistance Listing No. 93.575 Recommendation: The auditors recommend the Organization design, implement, and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review the current internal controls over allocations and source documentation to identify any gaps or weaknesses and develop a plan to address any identified gaps or weaknesses, including updating policies and procedures as necessary. Management will also communicate the updated policies and procedures to all relevant employees and provide training as needed. Monitoring and testing procedures will be implemented to ensure that the updated policies and procedures are being followed. There will also be regular reviews and updates to the policies and procedures as needed to ensure ongoing effectiveness. Management will assign responsibility for maintaining source documentation to a specific individual or team and develop a system for organizing and storing source documentation, such as a centralized electronic database. Monitoring and testing procedures will be implemented to ensure that source documentation is being maintained and is readily accessible. Lastly, there will be regular reviews and updates to the system for organizing and storing source documentation as needed to ensure ongoing effectiveness.

The Alamo Colleges District Student Financial Aid Office has collaborated with Internal Audit to put into place controls that ensure Alamo Colleges District Board policies are followed and that all Financial Aid staff are trained on the execution of those policies. Additional control reporting has been established to monitor compliance. The Board Policy F.2.4 has also been revised to clarify those expectations. Implementation Date: June 2024 Responsible Persons: Dr. Harold Whitis, District Director of Student Financial Aid

Allowability Child Care and Development Block Grant – Assistance Listing No. 93.575 Recommendation: The auditors recommend the Organization design, implement, and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review the current internal controls over allocations and source documentation to identify any gaps or weaknesses and develop a plan to address any identified gaps or weaknesses, including updating policies and procedures as necessary. Management will also communicate the updated policies and procedures to all relevant employees and provide training as needed. Monitoring and testing procedures will be implemented to ensure that the updated policies and procedures are being followed. There will also be regular reviews and updates to the policies and procedures as needed to ensure ongoing effectiveness. Management will assign responsibility for maintaining source documentation to a specific individual or team and develop a system for organizing and storing source documentation, such as a centralized electronic database. Monitoring and testing procedures will be implemented to ensure that source documentation is being maintained and is readily accessible. Lastly, there will be regular reviews and updates to the system for organizing and storing source documentation as needed to ensure ongoing effectiveness. Name of the contact person responsible for corrective action: Lyn Elliot, CEO Planned completion date for corrective action plan: 7/1/2025

U.S. Department of Education 2022-005: Unallowable Costs ? COVID-19 Higher Education Emergency Relief Funds (HEERF)/Coronavirus Aid, Relief and Economic Security (CARES) Act ? Institutional Portion Assistance Listing Number: 84.425F Recommendation: Implement procedures to ensure all grant expenditures are reviewed by fiscal management for additional review. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The unallowable expenses in the HEERF grant will be transferred out of the grant expenses in the 2022-23 fiscal year. Name(s) of the contact person(s) responsible for corrective action: Susan Wheet, VP of Finance and Administration Planned completion date for corrective action plan: The corrective action plan will be implemented by August of 2022.

Finding Number: 2022-001 Planned Corrective Action: The School District will review all purchases made with federal funds to ensure they are properly capitalized and input into the EIS system for tracking purposes. Anticipated Completion Date: April 30,2023 Responsible Contact Person: Samantha Hamilton, Treasurer

FINDING 2022-003 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 Foodservice Director and Business Manager will refer to the Guidance for State Agencies and School Food Authorities manual to ensure compliance for allowable costs. Anticipated Completion Date: January 2023

FINDING: DYER COUNTY SCHOOL DEPARTMENT HAD DEFICIENCIES IN THE USE OF EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASED (ELC) GRANT FUNDS, WHICH RESULTED IN QUESTIONED COSTS Response and Corrective Action Plan Prepared by: Cheryl Mathis, Director of Schools & Jeremy Gatlin, School Board Chairman Person Responsible for Implementing the Corrective Action: Cheryl Mathis, Director of Schools & Jeremy Gatlin, School Board Chairman Anticipated Completion Date of Corrective Action: October 11, 2022 ? Repeat Finding: No Reason Corrective Action was Not Taken in the Prior Year: NIA Planned Corrective Action: The school system will strengthen its internal controls by requiring that any future bonus paid to any member of the administrative staff be approved by the school board before the funds are disbursed to ensure that duties are adequately segregated. /l

Finding Reference 2022-009 Contact Person: Gerald Moench, Interim CFO (or Emily Buckley, VP of Advancement) Views of Responsible Officials and Planned Corrective Action: In including the questioned indirect cost as a HEERF expense, management only considered the per unit cost threshold, rather than both the per unit cost and the expected life of the items. The audit clarified the regulations and Donnelly promptly notified our program officer, posted a corrected quarterly report and refunded the funds to the Department of Education. Anticipated Completion Date: October 2022

Recommendation: The auditors recommend the Organization design, implement, and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review the current internal controls over allocations and source documentation to identify any gaps or weaknesses and develop a plan to address any identified gaps or weaknesses, including updating policies and procedures as necessary. Management will also communicate the updated policies and procedures to all relevant employees and provide training as needed. Monitoring and testing procedures will be implemented to ensure that the updated policies and procedures are being followed. There will also be regular reviews and updates to the policies and procedures as needed to ensure ongoing effectiveness. Management will assign responsibility for maintaining source documentation to a specific individual or team and develop a system for organizing and storing source documentation, such as a centralized electronic database. Monitoring and testing procedures will be implemented to ensure that source documentation is being maintained and is readily accessible. Lastly, there will be regular reviews and updates to the system for organizing and storing source documentation as needed to ensure ongoing effectiveness. Name of the contact person responsible for corrective action: Lyn Elliot, CEO Planned completion date for corrective action plan: 4/1/2024