Corrective Action Plans

5.   Documentation and Review:

·      Document the revised procedures and ensure that they align with the 2 U.S. Code of Federal Regulation, (CFR) 200.512

·      Establish a review mechanism to periodically assess the effectiveness of the new procedures.

6.   Communication Plan:

·      Develop a communication plan to inform relevant people about the changes in the financial reporting process.

·      Clearly communicate the importance of adhering to deadlines and the potential consequences of noncompliance.

7.   Monitoring and Reporting:

·      Implement a monitoring system to track progress in real-time.

·      Generate regular reports to assess the status of financial reporting and address any issues promptly.

8.   Corrective Action Plan Documentation:

·      Clearly outline the corrective action plan in response to the auditor’s recommendation.

·      Ensure that the corrective action plan addresses the root cause and includes steps taken to prevent recurrence.

9.   Management Review:

·      Conduct periodic management reviews to ensure ongoing compliance with the revised financial reporting process.

·      Address any emergency challenges promptly and make to further enhance the financial reporting process.

By following this action plan, the organization can enhance its financial reporting process

establish a robust internal control, and foster a culture of timely submission, thereby mitigating the risk of noncompliance with federal regulations and ensuring the timely and accurate

submission of required financial information to grantor agencies.

Findings and Questioned Costs Relating to Federal Awards: Late Single Audit Submission, Reporting Management submitted single audit reports up to fiscal year 2022. In order to address the root cause for this finding, management performed the following actions: • Management audit contracts are followed up directly by CFO to ensure timely execution to ensure audits are timely completed and planned. • Management enhancements to the finance function, such as accounting closing checklists, accounting closing meetings and reconciliation processes, among other actions, should improve the timing of audit results. Additional resources (consultants) were hired to assist in the audit process to ensure external auditors have information on a timely basis. In order to ascertain that basic and recurrent information requested by auditors is ready, management prepared an updated list of information normally requested and prepared a OneDrive (cloud backup storage) where all information will be archived and ready to be delivered to the auditors as requested. This should provide the efficiency and agility to response to auditors in a timely manner. Management expects to achieve full compliance of pending Single Audit reports’ issuance on or before August 2024.

Please see the plan for 2022-003. These actions will address this �inding and will have a direct impact on the accurate reporting in the SEFA and SESA as well as compliance with the uniform guidance.

Action Taken/to be Taken: ProsperityME has an accounting manager hired as of 1/5/2023. The accounting manager has taken over bookkeeping and accounting duties full time as of 6/1/2023. This person has extensive experience with nonprofit accounting, and GAAP standards. ProsperityME is actively recruiting for another part-time accounting specialist to support the accounting manager to ensure appropriate staffing levels for the fiscal department. This will ensure timely fulfillment of auditor requests.

Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reported package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2022-002 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year.

As of June 30, 2023 ECLC now only has 3 employees consisting of the Executive Director, Kathleen Federico, fiscal specialist, Tricia Imbesi and as needed maintenance man, Sean Collins. ECLC’s CFO, Dave Phillips resigned in April of 2022 and ECLC has not been able to fill that position since that time. On March 24, 2023 ECLC went into contract with UHY consultant, Daniel Pendergast, to help with the fiscal process. ECLC continues to struggle and has relinquished its Head Start Grant effective June 30, 2023, and is in the dissolution.

The Township Manager, Joseph Hillan, will review all grants received to be aware of the grant requirements and a spreadsheet will be created to list all grant amounts, dates awarded, dates of expiration and who is the source of funding. This spreadsheetwill be updated on a quarterly basis and reviewed by the Internal Accounting Consultant for accuracy. This spreadsheet will be submitted to the Auditor as a work paper every year.

Management Response: Management agrees with the auditors' finding. Internal controls did not exist during the audit period due to lack of staff in the business office and lack of understanding in the administration staff. The school has since hired a consulting firm to assist with following the existing policies and procedures. The school also has hired an experienced principal to oversee the operations of the business office. Anticipated completion date: June 30, 2023. Responsible party: Delores Noble, principal. Amber Wauneka, Consultant with Homeland Business Services.