Corrective Action Plans

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page 32 - Findings and Questioned Costs - Major Federal Program Audit Condition: The Organization has experienced significant delays in the preparation and issuance of the May 31, 2023, financial statements and its Single Audit required under the Uniform Guidance. Action: HH has provided the necessa...
page 32 - Findings and Questioned Costs - Major Federal Program Audit Condition: The Organization has experienced significant delays in the preparation and issuance of the May 31, 2023, financial statements and its Single Audit required under the Uniform Guidance. Action: HH has provided the necessary accounting personnel and contracts with an experienced accounting firm to ensure that the accounting functions are completed within nine months of the year end. The original delay is currently being worked through and HH personnel and an outside accounting firm are currently working to catch up on past due financial audits. FY2023-2024 and FY2024-2025 are expected to completed during FY2025-2026. page 33 - Prior Year Findings 2022-003: Internal Controls Over Cost Allocations and Administrative Costs Invoices and disbursements tested did not always indicate the allocation of costs between programs and grants. There were invoices that did not include approval for payment and some invoices were not available to be tested. Action - HH will continue to improve systems related to the cost allocation of grants funds to ensure that backup is included with the invoices at the time of payment.
2023-007 Material Weakness: See finding 2023-007. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to better establish policies and procedures to ensure compliance with the grant requisition processes. Management’s response: We concur with ...
2023-007 Material Weakness: See finding 2023-007. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to better establish policies and procedures to ensure compliance with the grant requisition processes. Management’s response: We concur with the recommendation. The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management is evaluating its processes and procedures related to grant requisitions and is planning on implementing procedures to ensure grants are requisitioned in the future. Additionally, management is working with its newly hired fee accountant to ensure grant funds are properly requisitioned in the future.
2023-006 Significant Deficiency: See finding 2023-006. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to prepare an operating budget by AMP location. Management’s response: We concur with the recommendation. The Authority has had some st...
2023-006 Significant Deficiency: See finding 2023-006. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to prepare an operating budget by AMP location. Management’s response: We concur with the recommendation. The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management was aware that its budget was not prepare by AMP location. Management engaged the services of a fee-accountant subsequent to year-end who will assist with the budgeting process starting in the 2024-2025 fiscal year.
2023-005 Material Weakness: See finding 2023-005. Recommendation: We recommend that management of the Authority review the deadlines for FDS submission and the financial statement submission and work with the newly retained fee accountant to ensure that these deadlines are met in the future. Mana...
2023-005 Material Weakness: See finding 2023-005. Recommendation: We recommend that management of the Authority review the deadlines for FDS submission and the financial statement submission and work with the newly retained fee accountant to ensure that these deadlines are met in the future. Management’s response: We concur with the recommendation. The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management was aware that its submissions were not timely. Management engaged the services of a fee-accountant subsequent to year-end who will assist with these submission going forward.
2024-004 Significant Deficiency: See finding 2023-004. Recommendation: We recommend that management of the Authority review its processes for closing out all fully-expended grants with HUD to ensure that, in the future, when grants are fully expended, the close-out process begins shortly thereafte...
2024-004 Significant Deficiency: See finding 2023-004. Recommendation: We recommend that management of the Authority review its processes for closing out all fully-expended grants with HUD to ensure that, in the future, when grants are fully expended, the close-out process begins shortly thereafter. Management’s response: We concur with the recommendation. The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management was aware that several older grants were still shown as “open” and that the close-out procedures would have to be implemented at some point. Management is evaluating its processes and procedures related to closing out grants and is planning on implementing procedures to ensure grants are properly closed. Management will be working with the newly hired fee accountant to close out grants that have been fully expended.
The Management Team of the Finance department will adhere to standards associated with monthend and year-end closing procedures. The Federal drawdowns will be timed in accordance with actual, immediate cash requirements. Reconciling the bank statements and payables will be completed monthly to assur...
The Management Team of the Finance department will adhere to standards associated with monthend and year-end closing procedures. The Federal drawdowns will be timed in accordance with actual, immediate cash requirements. Reconciling the bank statements and payables will be completed monthly to assure accuracy of cash and expense. We will review the Memphis Health Center chart of accounts to assure that all Journal Entries are designed to accumulate transactions in various departments and divisions. Contact person responsible for correction action, Dorothette Y White, CFO. As of December 2024, the correction actions have been completed.
We concur that the Fire Department did not submit the Performance Progress Report by the due date. When the County Grants Manager realized the report was not filed, it was corrected immediately and filed June 22, 2023. A dedicated Grants Division was recently established within the finance departmen...
We concur that the Fire Department did not submit the Performance Progress Report by the due date. When the County Grants Manager realized the report was not filed, it was corrected immediately and filed June 22, 2023. A dedicated Grants Division was recently established within the finance department during the second quarter of 2023 and has started the proper management of federal grants and reporting. In 2024, the Grants Division commenced full oversight of the entire grant lifecycle which included closeout. The Grants Division will closely monitor grant spending, compliance, record-keeping, budgeting, and financial oversight.
Corrective Action Plan Findings - Federal Award Program Audits Department of Education Finding 2023-003 - COVID-19 Education Stabilization Fund - Assistance Listing Number 84.425U, COVID-19 Education Stabilization Fund - Assistance Listing Number 84.425W Condition: The year-end financial reports...
Corrective Action Plan Findings - Federal Award Program Audits Department of Education Finding 2023-003 - COVID-19 Education Stabilization Fund - Assistance Listing Number 84.425U, COVID-19 Education Stabilization Fund - Assistance Listing Number 84.425W Condition: The year-end financial reports contained several errors related to the recording of receipts and expenses of the Major Federal Award Program. Auditors’ Recommendation: The District should implement a process that includes monitoring activity related to Federal Programs. It is recommended that individuals within the District obtain training related to internal control systems or consider the use of a 3rd party specialist. Planned Corrective Action: The District has had turnover since the completion of the previous audit (June 30, 2022), staff in key positions have turned over multiple times. As of the date of this report, the District has hired and implemented training for key staff to ensure proper grant management in the future.
Corrective Action Plan Findings - Federal Award Program Audits Department of Education Finding 2023-002 - Special Education Cluster (IDEA) - Special Education Grants to States - Assistance Listing Number 84.027, Special Education Preschool Grants - Assistance Listing Number 84.173 Condition: The...
Corrective Action Plan Findings - Federal Award Program Audits Department of Education Finding 2023-002 - Special Education Cluster (IDEA) - Special Education Grants to States - Assistance Listing Number 84.027, Special Education Preschool Grants - Assistance Listing Number 84.173 Condition: The year-end financial reports contained several errors related to the recording of receipts and expenses of the Major Federal Award Program. Auditors’ Recommendation: The District should implement a process that includes monitoring activity related to Federal Programs. It is recommended that individuals within the District obtain training related to internal control systems or consider the use of a 3rd party specialist. Planned Corrective Action: The District has had turnover since the completion of the previous audit (June 30, 2022), staff in key positions have turned over multiple times. As of the date of this report, the District has hired and implemented training for key staff to ensure proper grant management in the future.
Corrective Action Plan Findings - Federal Award Program Audits Department of Agriculture Finding 2023-001 - Child Nutrition Cluster - School Breakfast Program - Assistance Listing Number 10.553, National School Lunch Program - Assistance Listing Number 10.555, Summer Food Service Program for Chil...
Corrective Action Plan Findings - Federal Award Program Audits Department of Agriculture Finding 2023-001 - Child Nutrition Cluster - School Breakfast Program - Assistance Listing Number 10.553, National School Lunch Program - Assistance Listing Number 10.555, Summer Food Service Program for Children - Assistance Listing Number 10.559 Condition: The year-end financial reports contained several errors related to the recording of receipts and expenses of the Major Federal Award Program. Auditors’ Recommendation: The District should implement a process that includes monitoring activity related to Federal Programs. It is recommended that individuals within the District obtain training related to internal control systems or consider the use of a 3rd party specialist. Planned Corrective Action: The District has had turnover since the completion of the previous audit (June 30, 2022), staff in key positions have turned over multiple times. As of the date of this report, the District has hired and implemented training for key staff to ensure proper grant management in the future.
As soon as this recommendation was verbally made to staff in 2024, staff implemented a procedure to have all journal entries reviewed and approved by a member of management. Staff has reviewed all 2022-23 journal entries to ensure the appropriate initials/signatures reflect review and approval by a ...
As soon as this recommendation was verbally made to staff in 2024, staff implemented a procedure to have all journal entries reviewed and approved by a member of management. Staff has reviewed all 2022-23 journal entries to ensure the appropriate initials/signatures reflect review and approval by a member of management.
The District will maintain supporting documentation for the use of federal funds.
The District will maintain supporting documentation for the use of federal funds.
View Audit 354833 Questioned Costs: $1
The District will maintain supporting documentation for the use of federal funds.
The District will maintain supporting documentation for the use of federal funds.
View Audit 354833 Questioned Costs: $1
The District will maintain financial records used to report federal dollars for a minimum of 3 years
The District will maintain financial records used to report federal dollars for a minimum of 3 years
View Audit 354833 Questioned Costs: $1
Plan: Contracts are reviewed and updated annually by the compliance officer. Anticipated Date of Completion: 4/28/2025 Name of Contact Persons: Michael Holmes Management Response: Due to the repeated extensions of certain government grants and contracts, there were delays in securing contract re...
Plan: Contracts are reviewed and updated annually by the compliance officer. Anticipated Date of Completion: 4/28/2025 Name of Contact Persons: Michael Holmes Management Response: Due to the repeated extensions of certain government grants and contracts, there were delays in securing contract renewals with updated budget allocations. This issue has now been addressed with the completion and submission of revised budgets and grants.
View Audit 354800 Questioned Costs: $1
Plan: BCPN confirms that indirect costs are calculated in accordance with government guidelines outlined in 2 CFR Part 200. Anticipated Date of Completion: 4/26/2025 Name of Contact Persons: Ieesha Jones Management Response: Due to adopting to use a calendar year instead of a fiscal year, BCPN's ...
Plan: BCPN confirms that indirect costs are calculated in accordance with government guidelines outlined in 2 CFR Part 200. Anticipated Date of Completion: 4/26/2025 Name of Contact Persons: Ieesha Jones Management Response: Due to adopting to use a calendar year instead of a fiscal year, BCPN's indirect costs for FY24 will be reflected in the financial statements for the period ending June 30, 2024, rather than December 31, 2023. We confirm that the indirect costs are being billed and spent in compliance with the guidelines outlined in the government contract and there is no need for funds to be returned.
View Audit 354800 Questioned Costs: $1
Plan: The cost allocation policy has been implemented and submitted to outsourced auditing firms for review and approval by funders as of 2024. This policy is now actively in use. Anticipated Date of Completion: 4/26/2025 Name of Contact Persons: Ieesha Jones Management Response: BCPN successfull...
Plan: The cost allocation policy has been implemented and submitted to outsourced auditing firms for review and approval by funders as of 2024. This policy is now actively in use. Anticipated Date of Completion: 4/26/2025 Name of Contact Persons: Ieesha Jones Management Response: BCPN successfully implemented a new allocation policy for the year 2024.
Plan: To ensure accurate entry of all invoices, the CFO performs a thorough monthly review and reconciliation of the General Ledger accounts. Anticipated Date of Completion: 4/26/2025 Name of Contact Persons: Ieesha Jones Management Response: During the 2023 audit, the new CFO and management iden...
Plan: To ensure accurate entry of all invoices, the CFO performs a thorough monthly review and reconciliation of the General Ledger accounts. Anticipated Date of Completion: 4/26/2025 Name of Contact Persons: Ieesha Jones Management Response: During the 2023 audit, the new CFO and management identified system issues, noting that certain reports had calculation errors in the 2023 financials. However, the 2024 financials now reflect accurate reporting, thanks to the implementation of improved systems designed to address and prevent such issues.
Fraud was identified by board members of the Dover Interfaith Mission for Housing (DIMH) in November 2023 with respect to the Emergency Housing and Health programs, and an internal investigation ensued. Prior to this finding, a committee of the board reviewed the Executive Director’s (ED) financial ...
Fraud was identified by board members of the Dover Interfaith Mission for Housing (DIMH) in November 2023 with respect to the Emergency Housing and Health programs, and an internal investigation ensued. Prior to this finding, a committee of the board reviewed the Executive Director’s (ED) financial reporting and were confident in her documentation, which was also approved by the City of Dover manager of the Emergency Housing and Health programs. Briefly, the ED had invented invoices from motels and landlords along with applications from individuals and families who did not exist. In both programs, DIMH provided funds to cover motel stays and landlord payments and was reimbursed by the City of Dover. In practice, the ED simply took DIMH funds, deposited them into a personal account, and provided invented documents to the City that resulted in reimbursement to DIMH. This clever ruse had eluded both board and city personnel monitoring the expenditures and reimbursements. Once there was suspicion of fraud, board members not involved in prior program oversight actively reviewed files with the City’s program manager to ascertain its extent. A meeting was held between the board chair and the city’s program manager to review all files in order to determine the approximate extent of the fraud, which was clearly limited to these two grant programs. In early January 2024, DIMH board members arranged to meet with the Dover Police Department to provide an overview of the fraud. This led to police contact with local FBI and HUD inspector general offices along with the US attorney for Delaware, with the same board members providing all files and in-person descriptions of the scam. On February 28, 2025, the former ED met with federal officials to determine whether to endeavor to resolve the matter or to engage in litigation. She was given March 14, 2025 as a deadline for her decision. At that date, she agreed to work towards a settlement of resolution of the case and not to go to court. The details of this agreement are pending as of March 14, 2025. In early 2024, the DIMH board engaged a new external accounting firm and created a new control environment with significant internal controls and separation of duties developed in collaboration with the contracted CPA firm.
View Audit 354781 Questioned Costs: $1
Fraud was identified by board members of the Dover Interfaith Mission for Housing (DIMH) in November 2023 with respect to the Emergency Housing and Health programs, and an internal investigation ensued. Prior to this finding, a committee of the board reviewed the Executive Director’s (ED) financial ...
Fraud was identified by board members of the Dover Interfaith Mission for Housing (DIMH) in November 2023 with respect to the Emergency Housing and Health programs, and an internal investigation ensued. Prior to this finding, a committee of the board reviewed the Executive Director’s (ED) financial reporting and were confident in her documentation, which was also approved by the City of Dover manager of the Emergency Housing and Health programs. Briefly, the ED had invented invoices from motels and landlords along with applications from individuals and families who did not exist. In both programs, DIMH provided funds to cover motel stays and landlord payments and was reimbursed by the City of Dover. In practice, the ED simply took DIMH funds, deposited them into a personal account, and provided invented documents to the City that resulted in reimbursement to DIMH. This clever ruse had eluded both board and city personnel monitoring the expenditures and reimbursements. Once there was suspicion of fraud, board members not involved in prior program oversight actively reviewed files with the City’s program manager to ascertain its extent. A meeting was held between the board chair and the city’s program manager to review all files in order to determine the approximate extent of the fraud, which was clearly limited to these two grant programs. In early January 2024, DIMH board members arranged to meet with the Dover Police Department to provide an overview of the fraud. This led to police contact with local FBI and HUD inspector general offices along with the US attorney for Delaware, with the same board members providing all files and in-person descriptions of the scam. On February 28, 2025, the former ED met with federal officials to determine whether to endeavor to resolve the matter or to engage in litigation. She was given March 14, 2025 as a deadline for her decision. At that date, she agreed to work towards a settlement of resolution of the case and not to go to court. The details of this agreement are pending as of March 14, 2025. In early 2024, the DIMH board engaged a new external accounting firm and created a new control environment with significant internal controls and separation of duties developed in collaboration with the contracted CPA firm.
View Audit 354781 Questioned Costs: $1
Finding 2023-003--General Oversight--Significant Deficiency Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restr...
Finding 2023-003--General Oversight--Significant Deficiency Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services. View of Responsible Officials and Planned Corrective Actions: The Executive Director has worked to reduce the reliance on outside contracted accounting services. Beginning in Q1 2022, agency leadership took necessary action to begin restructuring the Finance Department following a change in staffing with the contracted accounting service. In Q2 2022, the agency promoted a long-tenured staff member to the newly-created Director of Grants and Finance position, which separated and removed all finance duties from the Director of Administration. To support the Director of Grants and Finance, a full-time Grants and Finance Specialist staff position was created in Q3 of 2022 To further strengthen financial oversight and ensure timely access to grant funds, the organization implemented a structured monthly grant billing schedule. This process ensures that vouchering is completed on time, reducing delays in reimbursements and mitigating cash flow disruptions. As a result, grant reimbursements have been received more consistently, alleviating financial strain and improving overall fiscal stability. Joseph’s House has created a 21-page Accounting Policies and Procedures Manual to ensure proper oversight of all fiscal functions. Changes are currently in process and will be sent for review by the Board’s Finance Committee followed by a final review and approval of the full Board of Directors. The organization has scaled back reliance on the contracted accounting service and has ensured that all claims, with the implementation of personnel time-tracking systems, are submitted through our Finance Department. We continue to use a contracted accounting service for higher-level accounting duties and for on-going advisement that supplements, instead of replaces, the work of internal staff. We are confident these changes have improved the agency’s ability to provide adequate management oversight in the financial reporting process. This was completed in Q2 of 2023.
Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prio...
Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date. Views of Responsible Officials and Planned Corrective Actions: The Executive Director will work with the Director of Grants and Finance, once the position is filled, along with a contracted accounting company, to review and revise the agency’s accounting policies and procures. To ensure proper oversight, all procedures and reports will be reviewed by the Board’s Finance Committee, followed by a final review and approval of the Full Board of Directors of Joseph’s House & Shelter. The agency is actively working on several financial management improvements with the support of an accounting firm providing technical assistance. An employee time tracking initiative has been put in place in 2024, along with efforts to convert to a more robust fund accounting system and implement automated accounts payable and payments through a web-based platform. Throughout these transitions, the agency will conduct a detailed review of grant funds, balances, and receivables. These improvements are expected to automate a significant portion of financial transaction postings, reducing manual labor and allowing Finance Department staff to focus on other critical duties. The new systems will be incorporated into an updated accounting policies and procedures document, ensuring adherence to streamlined processes that will expedite the claiming process and enable timely financial reporting.
Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: ...
Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Management was unable to reproduce a detailed listing of expenses incurred that agreed to the amounts submitted under the federal award for reimbursement. Planned Corrective Action: Management agrees with the finding and will review its policies and procedures to ensure that a detailed listing of expenses submitted for reimbursement is maintained. Planned Completion Date: Ongoing Person Responsible: Mary Young, Director of Operations
2023-005 Equipment and Real Property Management Program Name: Emergency Connectivity Funds Assistance Listing Number: 32.009 Pass-Through Agency: Criteria: Internal controls should be in place to ensure that equipment and real property management requirements are met as specified in the guidance pro...
2023-005 Equipment and Real Property Management Program Name: Emergency Connectivity Funds Assistance Listing Number: 32.009 Pass-Through Agency: Criteria: Internal controls should be in place to ensure that equipment and real property management requirements are met as specified in the guidance provided by the Federal Communications Commission (FCC). FCC guidance specified that the District was required to maintain asset inventories of the devices purchased with the ECF program. The Uniform Guidance requires any recipients of federal awards to comply with the equipment and real property management requirements indicated by the grantor agency. Corrective Action Plan: We concur with this finding. The District is developing corrective actions to strengthen Technology Division internal controls, policies, and procedures and ensure adherence through improved monitoring. The Capital Asset policy will be updated to document the District’s guidelines around bulk purchases, which will go before the Board for approval. Finance will work with all Divisions to ensure qualifying purchases are recorded in the financial records and properly inventoried. Estimated Completion Date: Fiscal Year 2025 Contact Person: Dr. Kermit Belcher, Interim Chief Technology Officer Telephone: 678-676-1200 E-mail: Kermit_Belcher@dekalbschoolsga.org
View Audit 354728 Questioned Costs: $1
2023-004 Allowable Costs Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Georgia Department of Education Criteria: In accordance with the terms of the Child Nutrition Grant and 2 CFR 200, Cost Principles for States, Local Governments, and India...
2023-004 Allowable Costs Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Georgia Department of Education Criteria: In accordance with the terms of the Child Nutrition Grant and 2 CFR 200, Cost Principles for States, Local Governments, and Indian Tribes, specific documentation must be maintained to support salaries and wages charged to the federal program. Where employees are expected to work solely on a single Federal award or cost objective, charges for their salaries and wages will be supported by periodic certifications that the employees worked solely on that program for the period covered by the certification. These certifications will be prepared at least semi-annually and will be signed by the employee or supervisory official having first-hand knowledge of the work performed by the employee. Where employees work on multiple activities or cost objectives, a distribution of their salaries or wages will be supported by personnel activity reports or equivalent documentation. Corrective Action Plan: We concur with this finding. The District is developing corrective actions to strengthen Child Nutrition Cluster Department internal controls, policies, and procedures and ensure adherence through improved monitoring. Through collaboration, the Finance Division and the School Nutrition Department will review payroll detail reports and ensure periodic certifications for all employees are completed timely. Estimated Completion Date: Fiscal Year 2025 Contact Person: Dr. Connie Walker, School Nutrition Executive Director Telephone: 678-676-1200 E-mail: Connie_R_Walker@dekalbschoolsga.org
View Audit 354728 Questioned Costs: $1
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