Corrective Action Plans

Finding 526852 (2023-004)

Significant Deficiency 2023

IN

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303

The purchase of the grant management system will pull accounting data from the accounting software, and the data will be mapped to the budgetary lines of the grant. Monthly, the financial grant coordinator will work with senior directors and directors to go over the financial information and ensure ...

The purchase of the grant management system will pull accounting data from the accounting software, and the data will be mapped to the budgetary lines of the grant. Monthly, the financial grant coordinator will work with senior directors and directors to go over the financial information and ensure compliance with the allowable cost to respective grants Correctively, budget vs actual reviews with senior directors take place in which directors identify permissible costs or costs that are not, and those costs are adjusted to programs that allow such cost or to admin

View Audit 345960

Finding 526851 (2023-003)

Significant Deficiency 2023

Edna Martin Christian Center, Inc.

IN

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303

The purchase of the grant management system will pull accounting data from the accounting software and the data will be mapped to the budgetary lines of the grant. Monthly, the financial grant coordinator will work with senior directors and directors to go over the financial information and ensure c...

The purchase of the grant management system will pull accounting data from the accounting software and the data will be mapped to the budgetary lines of the grant. Monthly, the financial grant coordinator will work with senior directors and directors to go over the financial information and ensure compliance with allowable cost to respective grants Correctively, budget vs actual reviews with senior directors take place in which directors identify permissible costs or costs that are not, and those costs are adjusted to programs that allow such cost or to admin

View Audit 345960 Questioned Costs: $1

Finding 526850 (2023-002)

Material Weakness 2023

Edna Martin Christian Center, Inc.

IN

Subrecipient Monitoring Reporting Material Weakness § 200.305 § 200.502 § 200.510

A grant manager and grant-financial coordinator have been hired to work with the finance team to communicate the whole gamut of applicable elements of ASC 606. Also, we are purchasing a grant management system—not a manual Excel sheet- that can scan grants and identify conditions and restrictions.

View Audit 345960

Finding 526810 (2023-003)

Significant Deficiency 2023

Eastern Area Workforce Development Board

NM

Reporting Internal Control / Segregation of Duties Significant Deficiency § 200.512

Recommendation We recommend that management enhance its internal control structure, including financial close and reporting, to ensure timely filing of future Single Audit reporting packages. Management Response Corrective Action: EAWDB agrees that the single audit reporting package has not been su...

Recommendation We recommend that management enhance its internal control structure, including financial close and reporting, to ensure timely filing of future Single Audit reporting packages. Management Response Corrective Action: EAWDB agrees that the single audit reporting package has not been submitted in a timely manner. EAWDB has engaged a third-party accounting firm and made staff duty changes to address the timely submission of accounting information. Due Date of Completion: March 31, 2025 Responsible Party(ies): General Administrator, Executive Director, third-party accounting firm

View Audit 345892

Finding 526792 (2023-003)

Significant Deficiency 2023

Birmingham Jefferson County Transit Authority

AL

Reporting Significant Deficiency § 200.512

In 2023, the Authority continued to face challenges with staffing shortages and turnover in key financial positions. These challenges resulted in delays in performing and completing accounting functions and issuing financial statements in a timely manner. However, Finance Department is now almost fu...

In 2023, the Authority continued to face challenges with staffing shortages and turnover in key financial positions. These challenges resulted in delays in performing and completing accounting functions and issuing financial statements in a timely manner. However, Finance Department is now almost fully staffed, and our accounting professionals possess the talent and experience to ensure accounting functions and processes are performed and completed in a timely matter. We now have the following accounting positions filled — Accounting Manager, Accounting Supervisor, and Senior Accountant. Furthermore, we have advertised and expect to soon fill the position of Controller. Filling these positions and elevating the talent level have resulted in immediate enhancements in financial reporting and will enable the Authority to submit the reporting package to the Federal Audit Clearinghouse by the prescribed due date.

View Audit 345835

Finding 526778 (2023-002)

Material Weakness 2023

East Arkansas Area Agency on Aging, Inc.

AR

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

Expenditures are required to be supported by a purchase order, work order or purchase requisite, along with all receipts. These requests are reviewed by the Director of Finance and the Executive Director for approval. All expenditures are then reviewed by the Payroll Manager to ensure proper documen...

Expenditures are required to be supported by a purchase order, work order or purchase requisite, along with all receipts. These requests are reviewed by the Director of Finance and the Executive Director for approval. All expenditures are then reviewed by the Payroll Manager to ensure proper documentation has been obtained. The expenditure is then entered into our accounting software, which is then approved by the Executive Director. These processes have been implemented in 2024 to ensure segregation of duties and that all transactions and entries into our accounting software are reviewed and approved by either the Director of Finance and/or the Executive Director. Management identified these issues during the 2024 FY and has implemented new processes or procedures to strengthen our internal controls.

View Audit 345812

Finding 526726 (2023-002)

Material Weakness 2023

City of Alva

OK

Management concurs with the finding, and for fiscal year 2024-2025 the City will implement staff procedures whereby the City Manager’s full-access to the payroll system will be transferred to the Finance Director. The City Manager will remain independent of the payroll process but will maintain a re...

Management concurs with the finding, and for fiscal year 2024-2025 the City will implement staff procedures whereby the City Manager’s full-access to the payroll system will be transferred to the Finance Director. The City Manager will remain independent of the payroll process but will maintain a read-only access to the system in order to fulfill the responsibility of periodically reviewing and approving individual payroll data and personnel adjustments. Furthermore, the City will maintain documented records of this process as evidence of its consistent operation.

View Audit 345729

Finding 526707 (2023-007)

Significant Deficiency 2023

Dallas County

IA

Procurement, Suspension & Debarment

The County established procedures in January 2024 to ensure all departments of the County are following the established County federal procurement policy.

View Audit 345710

Finding 526661 (2023-002)

Material Weakness 2023

Foresthill Union School District

CA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

The District agrees and has already implemented processes to ensure receivables are created with each claim created in CNIPS

View Audit 345656 Questioned Costs: $1

Finding 526577 (2023-010)

None 2023

County of Bradford, Pennsylvania

PA

Subrecipient Monitoring Reporting

Planned corrective Action: Bradford County will prepare an updated Subrecipient agreement and initiate a monitoring program to follow DHS Single audit requirements. Person Responsible: Michelle Shedden, Chief Clerk Anticipated Completion Date: 6/1/2025

View Audit 345545

Finding 526566 (2023-005)

Material Weakness 2023

Doral Academy of Northern Nevada

NV

Allowable Costs / Cost Principles

Corrective Action Plan: A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received. Personnel Respon...

Corrective Action Plan: A process was put in place in May 2023 to ensure all principal approvals are documented in writing or electronic approval in the system, which can be date stamped by the system. Payroll will not be run, nor grants submitted, until proper approval is received. Personnel Responsible for Corrective Action: Nachum Golodner, Academica Director of Accounting Anticipated Completion Date: June 30, 2024

View Audit 345521

Finding 526564 (2023-004)

Material Weakness 2023

Doral Academy of Northern Nevada

NV

Internal Control / Segregation of Duties Reporting Matching / Level of Effort / Earmarking

Corrective Action Plan: Due to unexpected turnover, a secondary review was not performed to verify the preparation of the ESSER reporting. To strengthen the oversight of financial management of the School, Academica Nevada, the School’s management company, filled all open positions and realigned sta...

Corrective Action Plan: Due to unexpected turnover, a secondary review was not performed to verify the preparation of the ESSER reporting. To strengthen the oversight of financial management of the School, Academica Nevada, the School’s management company, filled all open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. In addition, a financial controller has been added to ensure that secondary reviews occur on all required filings and reconciliations. Personnel Responsible for Corrective Action: Nachum Golodner, Academica Director of Accounting Anticipated Completion Date: June 30, 2024

View Audit 345521

Finding 526551 (2023-006)

Material Weakness 2023

Dunseith Public School District No. 1

ND

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Contact Person Evan Peltier Planned Corrective Action Dunseith Public School Dist. #1 will implement the recommendation from Brady Martz. Planned Completion Date The planned completion date is June 30, 2025.

View Audit 345466

Finding 526546 (2023-005)

Material Weakness 2023

Dunseith Public School District No. 1

ND

Internal Control / Segregation of Duties Cash Management Reporting

Contact Person Evan Peltier Planned Corrective Action Dunseith Public School Dist. #1 will implement the recommendation from Brady Martz. Planned Completion Date The planned completion date is June 30, 2025.

View Audit 345466

Finding 526537 (2023-004)

Material Weakness 2023

Dunseith Public School District No. 1

ND

Reporting School Nutrition Programs

Contact Person Evan Peltier Planned Corrective Action Dunseith Public School Dist. #1 will implement the recommendation from Brady Martz. Planned Completion Date The planned completion date is June 30, 2025.

View Audit 345466

Finding 526536 (2023-003)

Material Weakness 2023

Dunseith Public School District No. 1

ND

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

Contact Person Evan Peltier Planned Corrective Action Dunseith Public School Dist. #1 will implement the recommendation from Brady Martz. Planned Completion Date The planned completion date is June 30, 2025.

View Audit 345466

Finding 526512 (2023-003)

Material Weakness 2023

Boulder City Hospital, Inc.

NV

Special Tests & Provisions Material Weakness Matching / Level of Effort / Earmarking § 200.303

Finding 2023-003 Federal Agency Name: U.S. Department of Agriculture Federal Financial Assistance Listing: #10.766 Program Name: Community Facilities Loans and Grants Cluster, Community Facilities Loans and Grants Compliance Requirement: Special Tests and Provisions Finding Summary: The Hospital did...

Finding 2023-003 Federal Agency Name: U.S. Department of Agriculture Federal Financial Assistance Listing: #10.766 Program Name: Community Facilities Loans and Grants Cluster, Community Facilities Loans and Grants Compliance Requirement: Special Tests and Provisions Finding Summary: The Hospital did not sufficiently fund their reserve account. As of December 31, 2023, the Hospital should have USDA debt reserves at least equal to $389,998. Responsible Individuals: Doug B. Lewis, Chief Financial Officer Corrective Action Plan: Management will review the reserve account requirements and ensure appropriate contributions are made during the fiscal year.

View Audit 345428

Finding 526503 (2023-002)

Significant Deficiency 2023

Christian Farms Treehouse INC

TX

Recommendation: The Organization should reinforce its policies and procedures in regards to payroll expenses and note that when payroll is run, payment to the Internal Revenue Service should be rendered to decrease accrued payroll liabilities. Responsible Official‘s Response: We agree and will mak...

Recommendation: The Organization should reinforce its policies and procedures in regards to payroll expenses and note that when payroll is run, payment to the Internal Revenue Service should be rendered to decrease accrued payroll liabilities. Responsible Official‘s Response: We agree and will make sure that whenever payroll is run, payment is disbursed to the Internal Revenue Service to pay for payroll liabilities. Additionally, we will monitor the payroll liabilities account in the general ledger monthly to make sure there are no non-reconciling items in related to the account.

View Audit 345422

Finding 526500 (2023-001)

Significant Deficiency 2023

Christian Farms Treehouse INC

TX

Recommendation: The Organization should reinforce its policies and procedures in regards to expenditures to ensure vendor invoices are retained in a secure, centralized location. Responsible Official‘s Response: We agree and will make sure that all invoices are received and recorded accurately with...

Recommendation: The Organization should reinforce its policies and procedures in regards to expenditures to ensure vendor invoices are retained in a secure, centralized location. Responsible Official‘s Response: We agree and will make sure that all invoices are received and recorded accurately with proper authorization, and upon payment of those invoices, the confirmation of payment will be attached to the invoice and the invoices stored in a central location in the administrative offices.

View Audit 345422

Finding 526465 (2023-004)

Significant Deficiency 2023

Okanogan County Child Development Association

WA

Reporting

Recommendation: We recommend that the Association establishes controls that require timely reporting and support amounts reported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment Fiscal staff has been t...

Recommendation: We recommend that the Association establishes controls that require timely reporting and support amounts reported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment Fiscal staff has been trained on reporting requirements, including required supporting documentation and deliverable timelines. Root Cause At the end of 2022, the long-time fiscal director left the agency. With attrition in the fiscal department, other staff took responsibility for the reporting duty. This was complicated due to a lack of knowledge of the new software system and previous lack of all information being migrated into the new system, which contributed to pulling reports that were thought to be accurate, but were not. Action Taken The report was completed by the original due date by the new staff. It was later found that there was a drawdown request that was missed, making the annual report being returned. OCCDA has been in contact with the Payment Management System and the Fiscal Support at OHS. We began the process of completing this request for the missed draw down so that the report can be finalized. As of 2024, all PMS funds requested include fiscal software back updocumentation of associated expenses. With all of the current updates to the policy and procedures, the updates to the separation of duties and the new fiscal staff this will no longer be an issue as we have current and accurate information in our fiscal software allowing us to provide timely reports to PMS and other fund sources.

View Audit 345386

Finding 526464 (2023-003)

Significant Deficiency 2023

Okanogan County Child Development Association

WA

Internal Control / Segregation of Duties Cash Management Significant Deficiency

Recommendation: The Association establish controls that allow for the timely and accurate recording of grants and contracts receivable from reimbursement-based awards in the same period as their corresponding expenditures. Explanation of disagreement with audit finding: There is no disagreement with...

Recommendation: The Association establish controls that allow for the timely and accurate recording of grants and contracts receivable from reimbursement-based awards in the same period as their corresponding expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment Through this audit process and staff turnover, tasks have been distributed and processes have been implemented immediately to meet the expectations that an AR transaction be entered into the fiscal system within a timely manner of one week or sooner. Root Cause Due to a lack of knowledge of the new software system. Not all information was migrated into the new software system in a timely manner, making it difficult to use at its full potential. OCCDA had a large turnover in the fiscal team during the audit process. The transition to the new fiscal software was during the height of the COVID-19 pandemic, making it difficult to complete training and migration of the new system. Action Taken Immediately in 2023, the fiscal team implemented adding reports/documentation to all requests for funding to allow for better tracking and record keeping. Newly hired staff have established a clear understanding of the naming conventions for clarity and accurate reporting. Tasks have been realigned to specific positions so that all duties are covered and responsibilities are defined. This will ensure that all fiscal tasks are completed timely and accurately establishing controls for reimbursement funding. Training has been provided for the fiscal team on the internal processes and procedures to ensure the timely entry of all data and the importance of accurate monthly reports. We have reorganized the chart of accounts in support of the software consultants, we have added additional program numbers to track grants separately by funding year to allow us to close each grant yearly. Our Fiscal Assistant has been trained to complete all accounts receivable. Receivable billings are completed in the month that they are performed. All receipts are recorded in the month they are received. Monthly reports continue to be sent out each month for the Leadership team to review, allowing for transparency and additional reviews and accuracy. All bank reconciliations were completed and brought up to date in 2023. The GL accounts were updated for better separation and grant tracking. Updated our policy and procedures for recording revenue in the same period it occurred. We have updated internal controls and procedures for reconciling and reviewing all revenue and expenses regularly.

View Audit 345386

Finding 526463 (2023-002)

Significant Deficiency 2023

Okanogan County Child Development Association

WA

Internal Control / Segregation of Duties Significant Deficiency

Recommendation: We recommend the Association adopt controls to reconcile payroll liability balances at least quarterly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment During the previous audit, we impl...

Recommendation: We recommend the Association adopt controls to reconcile payroll liability balances at least quarterly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment During the previous audit, we implemented benefit plans in the system allowing for accurate and timely reporting. Worked with Fiscal Consultant to implement entry of all liabilities into the fiscal software. Root Cause Due to a lack of knowledge of the software system not all information was migrated into the new software system in a timely manner, making it difficult to use at its full potential. OCCDA had a large turnover in the fiscal team. The transition to the new fiscal software was during the height of the COVID-19 pandemic, making it difficult to complete training and migration of the new system. Action Taken Reassessing the payroll system set up and the mapping of the payroll liabilities, working towards reconciling the balance sheet accounts at minimum quarterly. Updated GL accounts and the payroll liability accounts to ensure that OCCDA is able to reconcile the accounts quarterly. Payroll procedures have been updated to include the steps and ensure that reconciliation is able to be cross trained.

View Audit 345386

Finding 526462 (2023-001)

Significant Deficiency 2023

Okanogan County Child Development Association

WA

Internal Control / Segregation of Duties Significant Deficiency Matching / Level of Effort / Earmarking

Recommendation: We recommend that Association staff familiarize themselves with the terms of the loan agreement and put controls in place to ensure funds are properly transferred to the reserve account at least annually. Explanation of disagreement with audit finding: There is no disagreement with t...

Recommendation: We recommend that Association staff familiarize themselves with the terms of the loan agreement and put controls in place to ensure funds are properly transferred to the reserve account at least annually. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment: Fiscal Manager has reviewed the loan requirements. Root Cause Due to large turnover in the fiscal team and the lack of knowledge of loan requirements. Action Taken Fiscal Manager has reviewed loan documents and requirements making ourselves familiar with the reserve account requirements. Moving forward the transfer to the reserve account will happen on a monthly basis in conjunction with the mortgage payment. OCCDA now has a recurring entry for this transaction and the funds are transferred monthly. Also we updated our procedures to ensure that all transfers are completed and are documented for cross training.

View Audit 345386

Finding 526455 (2023-004)

Material Weakness 2023

City of Wyandotte, Michigan

MI

Material Weakness Reporting Special Tests & Provisions

Condition: The City submitted the required Project and Expenditure Report, but the amount reported in March 2023 as cumulative expenditures was the City's total award amount rather than the amount spent to date. Planned Corrective Action: The City will correct the reports that have been submitted an...

Condition: The City submitted the required Project and Expenditure Report, but the amount reported in March 2023 as cumulative expenditures was the City's total award amount rather than the amount spent to date. Planned Corrective Action: The City will correct the reports that have been submitted and review future reports to ensure the appropriate expenditures are disclosed. Contact person responsible for corrective action: Robert McMahon, City Administrator Anticipated Completion Date: 09/30/2025

View Audit 345380

Finding 526454 (2023-003)

Material Weakness 2023

City of Wyandotte, Michigan

MI

Material Weakness Reporting Program Income

Condition: The City did not submit the required annual report related to use of program income. Planned Corrective Action: The City will work with the EPA to determine how to report the use of program income. Contact person responsible for corrective action: Robert McMahon, City Administrator Antici...

Condition: The City did not submit the required annual report related to use of program income. Planned Corrective Action: The City will work with the EPA to determine how to report the use of program income. Contact person responsible for corrective action: Robert McMahon, City Administrator Anticipated Completion Date: 09/30/2025

View Audit 345380

Corrective Action Plans

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