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CONDITION: During my review of the District’s compliance with the laws and regulations related to filing its federal grant program ‘Quarterly Cash On Hand Reconciliations’, and ‘Final Expenditure Reports (FER)’, I noted that the School District did not file the required Quarterly Cash on Hand Reconc...
CONDITION: During my review of the District’s compliance with the laws and regulations related to filing its federal grant program ‘Quarterly Cash On Hand Reconciliations’, and ‘Final Expenditure Reports (FER)’, I noted that the School District did not file the required Quarterly Cash on Hand Reconciliations and required Final Expenditure Report (FER) for the 2024-2025 fiscal year Title 1 grant program within the required reporting timeframes as specified by the Pennsylvania Department of Education and the Uniform Guidance. CRITERIA: The Department of Education requires the completion of the Quarterly Cash on Hand Reconciliation by the 10th working day after each quarter, and submission of a ‘Final Expenditure Report’ (FER) within 30 days of expending all grant funding. In addition, Section 2 CFR 200.344 of the Uniform Guidance requires the submission of financial reports no later than 90 calendar days after the end date of the grant period for performance (or an earlier date as agreed-upon by the pass-through entity and subrecipient, which in this case is 30 days as required by PDE). RECOMMENDATION: I recommend that the District develop fiscal procedures to ensure that ‘Quarterly Cash on Hand Reconciliations’ and ‘Final Expenditure Reports’ for future fiscal years are completed and filed in a timely manner based on supporting financial information obtained from the District’s business office, in order to 1) comply with PDE reporting requirements for the District’s applicable federal programs, and 2) to avoid any future sanctions such as suspension of grant payments by PDE as a result of not filing these reports in a timely manner. These procedures should include, at a minimum, cross-training of business office personnel with regard to the completion of these reports so that the absence of one individual would not result in these reports not being filed in a timely manner. MANAGEMENT’S PLANNED CORRECTIVE ACTION: The School District will implement procedures for timely and accurate reporting of the Quarterly Cash on Hand Reconciliation Reports and Final Expenditure Report (FER). The financial information in the Quarterly Cash on Hand Reconciliation Report and FER will accurately reflect internal reporting contained in the School District’s general ledger according to the Manual of Accounting and Financial Reporting for Pennsylvania Local Educational Agencies and the PA Chart of Accounts. The timeframe for completion will commence during the later part of the 2025-2026 fiscal year and continue into the first half of 2026-2027 fiscal year until completed. These procedures will be applied going forward to ensure the accurate and timely filing of the required federal program Quarterly Cash on Hand Reconciliation Reports and the Final Expenditure Report (FER) for submission to the Pennsylvania Department of Education.
Finding #2025-003 – Material Weakness and Material Noncompliance – Allowable Costs. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract periods: 10/01/23 – 09/30/24; 10/01/24 – 09/30/2...
Finding #2025-003 – Material Weakness and Material Noncompliance – Allowable Costs. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract periods: 10/01/23 – 09/30/24; 10/01/24 – 09/30/25. Condition and context: M-AAA failed to submit its indirect cost rate application in 2024, which resulted in a lapse in an approved rate. At the direction of the program officer at the National Endowment for the Arts, M-AAA was directed to use the 10% de minimus rate; however, the billings were not adjusted for the change in indirect rates resulting in overbilling to the federal grants. Recommendation: Re-emphasize internal procedures for review of allowable indirect costs based upon an approved indirect cost rate or election to use 10% de minimus rate. Planned corrective action: M-AAA has elected to use de minimus rate approved by the National Endowment for the Arts (NEA). We reported the overbilling to the NEA and resolved the difference in the indirect costs that had been applied. Responsible officer: Todd Stein, CEO and Charley Young, Finance Director. Estimated completion date: March 2026.
Finding #2025-002 – Material Weakness and Other Noncompliance – Cash Management. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract period: 10/01/22 – 09/30/27. Condition and context:...
Finding #2025-002 – Material Weakness and Other Noncompliance – Cash Management. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract period: 10/01/22 – 09/30/27. Condition and context: The federal contract with M-AAA is a 5-year grant with annual budget periods that end September 30 of each of the years in the contract thru 2027. M-AAA requested advances in the Spring of 2025 when there was uncertainty in the timing of future grant payments. At June 30, 2025, M‑AAA held approximately $578,000 in refundable advances, approximately $368,000 which was spent subsequent to year end for the period of July 1, 2025 to September 30, 2025. Recommendation: Re-emphasize internal procedures to ensure federal funds are not being held for an excess period of time. Planned corrective action: M-AAA was uncertain about the timing of future grant payments and requested advances in April 2025. Because payments to subrecipients were delayed, excess funds remained on hand at fiscal year-end and were distributed in the following fiscal year. With a stronger cash position in the new fiscal year, we have shifted to a reimbursement-based approach for cash requests. Advances will be requested only when grant payments are expected within 30 days and closely monitored to ensure close out. Responsible officer: Todd Stein, CEO and Charley Young, Finance Director. Estimated completion date: December 2025.
Reporting – Financial and Performance Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 and B-23-CP-CO-0280 Award Year ...
Reporting – Financial and Performance Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 and B-23-CP-CO-0280 Award Year – 2022 and 2023 Condition: During testing, it was noted that the semiannual performance reports required to be submitted during calendar year 2025 were not submitted by the required deadlines. The reports, which were due in January 2025 and July 2025, were not submitted until September 2025. As a result, the Grantee did not submit required financial and performance reports within the timeframe prescribed by the grant agreement and 2 CFR §§ 200.328 and 200.329. Additionally, management could not provide evidence of review for one of the reports. Planned Corrective Action: Departments that administer grants will establish and maintain a grant tracking process to identify required reporting, due dates, and personnel responsible for the completion and review of the required reporting. This tracking process will be documented and shared with the Controller’s Office. In addition, Departments will maintain documentation of the review and approval of reports as part of the grant documentation. City of Aurora Responsible Party: Stephanie Keiper, Homelessness Division Manager; Matthew Kipp, Manager of Business Services; Tim Sherbondy, Grant Compliance Officer; and Tyra Litzau, Controller Anticipated Completion Date: March 31, 2027
Reporting – Special Reports for FFATA and Subrecipient Monitoring Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 Awa...
Reporting – Special Reports for FFATA and Subrecipient Monitoring Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 Award Year – 2022 Condition: During testing of FFATA reporting requirements, it was noted that the City had one applicable first-tier subrecipient; however, the City did not report the subaward information in SAM.gov. Additionally, during testing of subrecipient monitoring, it was noted that the City did not communicate required federal award information or increase in funding to its sole subrecipient as required by 2 CFR § 200.332(a). Planned Corrective Action: The City corrected the FFATA reporting in SAM.gov and the reporting now includes the subaward information for the subrecipient. In addition, the City provided a letter to its sole subrecipient to communicate the required federal award information. Additional procedures will be implemented for Departments to identify subrecipients during the grant set up process with the Controller’s Office to ensure that FAFTA reporting is completed for required grants and subrecipients. Finally, the City will continue to work with the Legal Department to create subrecipient agreements and ensure that federal award information is detailed in the executed agreements. City of Aurora Responsible Party: Stephanie Keiper, Homelessness Division Manager; Tim Sherbondy, Grant Compliance Officer; and Tyra Litzau, Controller Anticipated Completion Date: December 31, 2026
CASE FILE REVIEWS Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Grants to States for Medicaid (Medicaid Cluster) Assistance Listing Number: 93.778 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2505MN5ADM and 2505MN5MAP Award P...
CASE FILE REVIEWS Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Grants to States for Medicaid (Medicaid Cluster) Assistance Listing Number: 93.778 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2505MN5ADM and 2505MN5MAP Award Period: Year-Ended December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: It is recommended the County perform internal case file reviews and implement standard documentation that will formalize the performed reviews. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will add additional documentation and specific casefile reviews will be implemented. Name of the contact person responsible for corrective action plan: Anne Lindseth, Health and Human Services Director Planned completion date for corrective action plan: December 31, 2026
RANDOM MOMENT STUDY (RMS) EMPLOYEE LISTING Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Grants to States for Medicaid (Medicaid Cluster) and Temporary Assistance for Needy Families (TANF) Assistance Listing Number: 93.778 and 93.558 Pass-Through Agency: Minneso...
RANDOM MOMENT STUDY (RMS) EMPLOYEE LISTING Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Grants to States for Medicaid (Medicaid Cluster) and Temporary Assistance for Needy Families (TANF) Assistance Listing Number: 93.778 and 93.558 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Health Pass-Through Numbers: 2505MN5ADM, 2505MN5MAP, and 2501MNTANF Award Period: Year-Ended December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Recommendation: It is recommended the County implement a quarterly review and reconciliation procedure to ensure that the population of participating workers included in each RMS listing agrees to the population of participating workers whose salaries and wages were recorded to the corresponding payroll accounts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will strive to implement quarterly review and reconciliation procedures over the RMS listing and corresponding payroll accounts. Name of the contact person responsible for corrective action plan: Anne Lindseth, Health and Human Services Director Planned completion date for corrective action plan: December 31, 2026
Grant Reporting (SF-425 Submissions) Federal Agency Name: Department of Agriculture / Forest Service Assistance Listing Number: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Federal expenditures reported on Line 10e of the quarterly Federal Financi...
Grant Reporting (SF-425 Submissions) Federal Agency Name: Department of Agriculture / Forest Service Assistance Listing Number: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Federal expenditures reported on Line 10e of the quarterly Federal Financial Reports (SF-425) did not reconcile directly to the Cooperative’s general ledger records for the applicable reporting period, resulting in an understatement of reportable expenditures for that period. Views of Responsible Officials & Management Response: Management disagrees with the finding as a Material Noncompliance and Material Weakness. Management acknowledges a timing discrepancy existed between quarterly filings and standard accrual rules, but maintains this matter does not constitute material noncompliance or a material weakness for the following reasons: 1. Reliance on Explicit Federal Directives: While management acknowledges Uniform Guidance under 2 CFR 200 requires financial reporting to align directly with accounting records, the Cooperative prepared and submitted the SF-425 reports in strict good-faith compliance with explicit, written instructions provided by the Forest Service’s Grant Department. See Exhibit B. Seeking out, receiving, and adhering to written directives from the federal oversight agency demonstrates a strong culture of compliance and an active effort to align with funder expectations, rather than a disregard for federal reporting statutes. 2. No Financial Risk or Loss of Funds: All underlying grant expenditures were valid, allowable, and verified. No questioned costs were identified. Because the reporting timing discrepancy was a direct result of following the awarding agency’s specific written guidance, management maintains this does not constitute a systemic control failure. The understatement in expenditures is directly related to a timing issue, resulting in zero financial risk to the federal government. Corrective Action Planned: Management has implemented formal control enhancements covering both grant reporting schedules and contract administration: o Revised Report Timing & Reconciliation Controls: To resolve the conflict between agency-specific guidance and independent audit standards, management has updated the operational timing and preparation method for Form SF-425. All future quarterly reports will be generated directly from general ledger accrual records strictly as of the quarter-end date. The SF425 and SF270 forms will be submitted separately in an effort to mitigate the timing issue. This updated timeline satisfies requirements for accrual reporting while providing an auditable submission trail for the granting agency. Responsible Person(s): Stacie Dellamano, Chief Financial Officer Anticipated Completion Date: December 31, 2026 Exhibit B From: Fusselman, Sarah - FS, ID Sarah.Fusselman@usda.gov Sent: Friday, July 17, 2026 10:09 AM To: Katie Dalton Subject: Re: [External Email]SF 425 Question for Grant 24-DG-11010013-052 Attachments: Grant Reminders for State, Private & Tribal Forestry R1 R4.pdf; POST AWARD Training2025.pptx Hi Katie, Please review the attached documents that outline how to properly complete the SF-425. I’m also including a helpful training video provided by the U.S. Fish and Wildlife Service: Please keep in mind that in the past, as the GMS for this award, I was able to piece together Flathead Electric’s reporting approach and document why certain entries were allowable on earlier SF-425 submissions. Going forward, because some quarters are busier than others, additional Forest Service administrative staff help manage the reporting inbox. They review SF-425s closely, and since fewer than three cooperators out of more than 500 awards submit the SF-425 and SF-270 simultaneously, these submissions will continue to be questioned. When the SF-425 shows an expenditure as “received” during the same period in which the SF-270 was just submitted, FS staff will request corrections from Flathead Electric each time. Additionally, with the upcoming FS reorganization, I may not remain the point of contact for this award. Future reviewers will need Flathead Electric to clearly explain its accounting methodology every reporting cycle. Please have Flathead Electric’s auditor reach out to my supervisor, Kamie Vaux, at kami.vaux@usda.gov so that the Forest Service can better understand what clarification the auditor is seeking. Thank you, and please let me know if you need anything additional. Sarah Fusselman Grants Management Specialist Forest Service State, Private & Tribal Forestry, Region 1 & 4 c: 208-479-3095 sarah.fusselman@usda.gov Exhibit B Continued From: Vaux, Kamie - FS, UT <kamie.vaux@usda.gov> Sent: Tuesday, July 28, 2026 9:18 AM To: Katie Dalton; Kathryn Eigenberg Cc: Stacey Nelson; Stacie Dellamano Subject: RE: [External Email]RE: Form 425 Reporting Good morning, Thank you for the detailed explanation. Yes—your understanding is correct, and the information you outlined aligns with Forest Service expectations. As we discussed, the timing differences between the quarterly SF-270 and SF-425 submissions naturally affect line 10e, and the values you’ve reported previously are exactly what we would expect to see. Adjusting the submission timing as you described may help reduce the variance, but we recognize that invoice timing will not always allow for that approach. And you’re also right that lines 10a, 10b, and 10c are generally not required for this program, and when they are included, they are not reviewed by the Forest Service. Please let me know if any additional clarification would be helpful—I’m happy to assist further. Thank you, Kamie Kamie Vaux Supervisory Grants Specialist Forest Service State, Private & Tribal Forestry Region 1 and Region 4 c: 385-278-3255 kamie.vaux@usda.gov 324 25th Street Ogden, UT 84401
Preparation of Schedule of Expenditures of Federal Awards (SEFA) Federal Agency Name: Department of Agriculture / Forest Service / Rural Business- Cooperative Service Assistance Listing Numbers: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Audit a...
Preparation of Schedule of Expenditures of Federal Awards (SEFA) Federal Agency Name: Department of Agriculture / Forest Service / Rural Business- Cooperative Service Assistance Listing Numbers: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Audit adjustments were made to reportable expenditure amounts on two of the four programs listed on the draft Schedule of Expenditures of Federal Awards (SEFA), and there was no formally documented review or approval process over the client prepared schedule. Views of Responsible Officials & Management Response: Management partially agrees with the finding. Management acknowledges the SEFA preparation requires improvement. However, management respectfully disagrees with the classification of this deficiency as a Material Weakness and maintains that it is more accurately characterized as a Significant Deficiency based on the following facts: 1. Accuracy of General Ledger & Cost Record Integrity: The underlying project expenditures were completely accurate, fully recorded in the Cooperative's accounting records, and immediately available for review and audit. No unrecorded, unsupported, or unallowable expenditures occurred, and no questioned costs were identified. 2. Active Internal Control & Proactive Consultation: Management actively sought to ensure accurate reporting by reaching out via email for technical advice regarding reportable fiscal year expenditures prior to SEFA finalization (see Exhibit A). Eide Bailly offers SEFA preparation as an allowable non-attest service without impairing independence; however, Management prepared the draft schedule internally in good-faith reliance on the technical direction provided. Seeking expert technical advice reflects an active internal control process focused on compliance, rather than a failure of internal controls. 3. Isolated Allocation & Presentation Error: The general ledger was completely accurate and all underlying grant expenditures were valid; the core financial data and grant funds were never at risk. The variance was strictly limited to the post accounting allocation required for SEFA presentation. Under the CWDG grant structure, project invoices contained co-mingled expenses covering both federal and non-federal lands. While 100% of these valid project costs were properly recorded in the accounting system, the initial SEFA draft did not apply the required percentage allocation to isolate the federal portion. This represents an isolated technical reporting calculation rather than a fundamental breakdown in the Cooperative’s internal controls over financial reporting or grant administration. Corrective Action Planned: Management has refined its SEFA preparation methodology to distinguish general ledger project accounting from reportable federal expenditures. Rather than utilizing total GL account balances, internal review controls now ensure SEFA reporting is strictly derived from verified, net federally reimbursable costs after applying all applicable grant allocation formulas. Additionally, management has documented the preparation and review process for the SEFA to ensure appropriate documentation and oversight. Responsible Person(s): Stacie Dellamano, Chief Financial Officer Anticipated Completion Date: Immediately and for December 31, 2026, SEFA presentation Exhibit A From: Stacie Dellamano <s.dellamano@flathead.coop> Sent: Friday, December 12, 2025 10:32 AM To: Stacey Nelson <smnelson@eidebailly.com>; Julie Urban J.Urban@flathead.coop Cc: Parker Van Zee <pvanzee@eidebailly.com> Subject: Re: Flathead Electric - Single Audit Discussion Stacey, I'm working on updating a SEFA. This will be the first year for a single audit on some of these grants, BUT there were quite a few expenditures in 2024. My question is on the SEFA, what number do I enter under the "expenditure" column? Do I enter 2025 related expenditures only or "Grant-To- Date" expenditures? Stacie Dellamano Chief Financial Officer Flathead Electric Cooperative s.dellamano@flathead.coop | Direct (406) 751-4463 | Cell (406) 871--8993 Toll Free (800) 735-8489 2510 US Highway 2 East, Kalispell, MT 59901 www.flatheadelectric.com Exhibit A Continued From: Stacey Nelson <smnelson@eidebailly.com> Sent: Friday, December 12, 2025 11:12 AM To: Stacie Dellamano <s.dellamano@flathead.coop>; Julie Urban <J.Urban@flathead.coop> Cc: Parker Van Zee <pvanzee@eidebailly.com> Subject: RE: Flathead Electric - Single Audit Discussion It should be the expenditures under your fiscal year only. Do not include expenditures from a prior year. Do you have any FEMA Disaster funds? As those have a little different process. If so, we can set up a call to discuss. If not applicable, you can ignore. Thanks! Stacey Nelson Assurance Partner Sioux Falls, SD T 605.367.6746
Management has strengthened its procedures and internal controls to ensure all required suspension and debarment verifications are documented and retained for expenditures under federal award programs. Effective immediately, the Vermont Bond Bank has revised its loan application and closing processe...
Management has strengthened its procedures and internal controls to ensure all required suspension and debarment verifications are documented and retained for expenditures under federal award programs. Effective immediately, the Vermont Bond Bank has revised its loan application and closing processes to require the inclusion of the applicant's Unique Entity Identifier (UEI), as well as identification of key personnel associated with the borrower. In addition, management has developed and implemented a standardized SAM.gov Verification Form that documents the completion of suspension and debarment reviews in SAM.gov for the borrower's UEI, municipality or organizational name, and key personnel. The form records the date of the review, the individual performing the verification, and the results of the search. The SAM.gov Verification Form has been incorporated into the program closing checklist and will be maintained as part of each loan file. All supporting documentation will be retained in a centralized electronic location to ensure completeness, accessibility, and compliance with federal requirements. Management believes these enhancements will provide adequate documentation and evidence of compliance with federal suspension and debarment requirements for all future program transactions.
Finding 2025-003 Procurement, Suspension and Debarment Programs: ALN 66.458 Clean Water State Revolving Fund Condition: The City’s procurement procedures do not conform to Uniform Guidance requirements. Corrective Action Planned: The City will update procurement procedures to conform with Minnesota ...
Finding 2025-003 Procurement, Suspension and Debarment Programs: ALN 66.458 Clean Water State Revolving Fund Condition: The City’s procurement procedures do not conform to Uniform Guidance requirements. Corrective Action Planned: The City will update procurement procedures to conform with Minnesota statutes and Uniform Guidance. Officer Responsible for Ensuring CAP: Stacy Kass, Clerk/Treasurer Planned Completion Date: 12/31/2026 49
2025-001 – ALN 14.881 – Moving to Work Demonstration Program – Allowable Activities Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. The Authority has begun taking corrective action to address the matter. Th...
2025-001 – ALN 14.881 – Moving to Work Demonstration Program – Allowable Activities Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. The Authority has begun taking corrective action to address the matter. The Authority has contacted HUD to obtain guidance on the appropriate method for resolving the balance and ensuring compliance with applicable requirements. Upon receiving HUD's direction, the Authority will implement the necessary corrective measures and take steps to prevent similar issues from occurring in the future. Person Responsible for Correction of Finding: Bonita Schatz, Chief Executive Officer Projected Completion Date: Ongoing work in progress. No completion date can currently be determined.
Finding 2025-002 Procurement, Suspension and Debarment Material Weakness in Internal Control Over Compliance and Instance of Material Noncompliance Assistance Listing 21.029 Wabash currently maintains the process of procurement standards and internal controls. While we previously managed contractor ...
Finding 2025-002 Procurement, Suspension and Debarment Material Weakness in Internal Control Over Compliance and Instance of Material Noncompliance Assistance Listing 21.029 Wabash currently maintains the process of procurement standards and internal controls. While we previously managed contractor selections through established internal practices, we recognize the requirement for a comprehensive written procurement policy that explicitly outlines selection criteria and mandatory debarment verification procedures. To remediate the identified material weakness, Wabash implemented a formal Procurement Policy and Procedure June 30, 2026. This document mandates: • Standardized Selection Criteria: Clear guidelines for the evaluation and selection of contractors to ensure transparency and competition. • Debarment Verification: A required protocol for verifying and documenting that contractors are not excluded or debarred via the System for Award Management (SAM). • Oversight: The Network Operations will be responsible for the implementation and ongoing monitoring of these controls to ensure full regulatory compliance. These measures will ensure that all future procurement activities meet federal requirements and organizational standards for financial integrity. Contact person(s): Jason Griffy, Network Operations Manager Justin Gephart, Chief Operating Officer
Finding 2025-001 Allowable Cost Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need...
Finding 2025-001 Allowable Cost Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need for a formalized, written policy governing expenditures charged to federal awards. To address identified significant deficiency, Wabash implemented a comprehensive written policy as of June 30, 2026. This policy will formalized the coding, review, and reporting processes for all federal expenditures. Key improvements included: • Enhanced Internal Controls: We established a clear segregation of duties to ensure oversight and accuracy. • Timely Reporting: We refined our payroll allocation process. Previously, payroll expenditures were withheld pending budget verification, which occasionally led to reporting delays. New controls will ensure that all expenditures, including payroll, are reported within the required quarterly timeframes. • Monitoring: The Controller will oversee the development of these procedures and remain responsible for ongoing monitoring and compliance. These steps will ensure our financial practices meet federal standards and provide rigorous oversight of project funds. Contact person(s): Cheryl Gaither, Controller Justin Gephart, Chief Operating Officer
Management concurs that documentation evidencing supervisory review and approval of employee timesheets was not consistently maintained during the FY2025 audit period. Supervisory review and approval did occur; however, documented evidence of that review was not consistently retained during the peri...
Management concurs that documentation evidencing supervisory review and approval of employee timesheets was not consistently maintained during the FY2025 audit period. Supervisory review and approval did occur; however, documented evidence of that review was not consistently retained during the period following the federal executive stop-work order affecting the PRM grant, when the organization was operating with significantly reduced staffing and focused on maintaining essential operations. With the commencement of the ORR federal award, the organization implemented formal documented employee certification, supervisory review and approval procedures during October 2025. During that time, supervisors were required to review and approve employee timesheets electronically and documentation of those approvals retained as part of the organization’s payroll and grant compliance records. Anticipated Completion Date: October 2025. Responsible Contact Person: Michael Quan, Director of Finance & Operations.
Management concurs that a formal written procurement policy was not in place during the FY2025 audit period. Procurement activities were governed by established operational practices during FY2025, and a formal Procurement & Contract Administration Policy was adopted and implemented in March 2026. T...
Management concurs that a formal written procurement policy was not in place during the FY2025 audit period. Procurement activities were governed by established operational practices during FY2025, and a formal Procurement & Contract Administration Policy was adopted and implemented in March 2026. The policy establishes procurement methods, approval requirements, documentation standards, conflict-of-interest requirements, and procedures for noncompetitive procurements. Anticipated Completion Date: March 2026. Responsible Contact Person: Michael Quan, Director of Finance & Operations.
Management concurs that a formal written procurement policy was not in place during the FY2025 audit period. Procurement activities were governed by established operational practices during FY2025, and a formal Procurement & Contract Administration Policy was adopted and implemented in March 2026. T...
Management concurs that a formal written procurement policy was not in place during the FY2025 audit period. Procurement activities were governed by established operational practices during FY2025, and a formal Procurement & Contract Administration Policy was adopted and implemented in March 2026. The policy defines staff responsibilities, risk-assessment procedures, monitoring activities, documentation requirements, follow-up procedures, and compliance review requirements. Management has also implemented standardized risk-assessment and monitoring tools to support consistent documentation and oversight of subrecipients. Anticipated Completion Date: March 2026. Responsible Contact Person: Michael Quan, Director of Finance & Operations.
Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Compliance Requirement: Procurement - Suspension and Debarment Type: Significant Deficiency in Internal Control over Compliance, Other Matters Condition/Context: During our audit, we noted a...
Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Compliance Requirement: Procurement - Suspension and Debarment Type: Significant Deficiency in Internal Control over Compliance, Other Matters Condition/Context: During our audit, we noted a deficiency related to suspension and debarment verification and documentation. Specifically, for the procurement transactions tested, Worcester County, Maryland did not document verification that the vendor was not suspended or debarred prior to contract execution. In addition, the County does not have a formally documented suspension and debarment policy. While management indicated that suspension and debarment checks may be performed in practice, the absence of written policies and procedures resulted in inconsistent application and documentation of this required compliance procedure. Uniform Guidance requires non-federal entities to ensure that vendors and contractors receiving federal funds are not suspended or debarred from participating in federally funded programs. Effective compliance with this requirement is supported by documented policies and procedures that require verification (e.g., review of the System for Award Management (SAM.gov)) prior to entering into contracts. Recommendation: The County should develop and formally document a suspension and debarment policy that requires verification and documentation of vendor eligibility (e.g., SAM.gov review) for all contracts supported by Federal awards prior to execution of the contract. Management should also consider implementing standardized checklists or review controls to promote consistent compliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Worcester County plans to update the County purchasing, financial and grant policies ensure debarment and suspension compliance by implementing procedures aligned with the U.S. Office of Management and Budget Uniform Guidance (primarily 2 CFR Part 200) and the governmentwide debarment rules in 2 CFR Part 180, as adopted by the awarding agency. The corrective action includes implementing a written procurement policy which states that the county will not contract with or issue subawards to parties that are suspended or debarred when federal funds are involved. The Grant/Budget Office will maintain open communication with Procurement regarding federally funded grant projects that will be advertised for bid. After bids are received and before the evaluation committee reviews or recommends an award, the Grant/Budget Office will search the System for Award Management (SAM.gov) exclusion database for each vendor that submitted a bid. A PDF or screenshot of the SAM search for each vendor will be retained in a grant and procurement file. All other federal grants under procurement threshold will need county departments to reach out to the Grant/Budget office before choosing vendors. Departments will need to list their potential vendors for the federal grant and email to the Grant/Budget office for debarment verification before moving forward with expending federal grant funding. A PDF or screenshot of the SAM search for each vendor will be sent to the department and a copy kept by Grants/Budget office as well. Name(s) of the contact person(s) responsible for corrective action: Kimberly Reynolds, Budget Officer kreynolds@worcestermd.gov Planned completion date for corrective action plan: Fiscal Year 2027
Recommendation: The Town should implement procedures to reconcile all federal reporting to the general ledger. Response: A full reconciliation of the ARPA accounts has been performed and aligned with the previous compliance reporting. A chart of accounts conversion is under way which will segregate ...
Recommendation: The Town should implement procedures to reconcile all federal reporting to the general ledger. Response: A full reconciliation of the ARPA accounts has been performed and aligned with the previous compliance reporting. A chart of accounts conversion is under way which will segregate federal funds from one fund to six funds for comprehensive oversight in the general ledger.
Untimely Submission of the Single Audit Reporting Package – Criteria: Title 2 CFR 200.512(a)(1) requires the audit, data collection form, and reporting package to be submitted to the Federal Audit Clearinghouse within 30 calendar days after the auditee receives the auditor's reports or nine months a...
Untimely Submission of the Single Audit Reporting Package – Criteria: Title 2 CFR 200.512(a)(1) requires the audit, data collection form, and reporting package to be submitted to the Federal Audit Clearinghouse within 30 calendar days after the auditee receives the auditor's reports or nine months after the end of the audit period, whichever is earlier, unless an extension is authorized by the cognizant or oversight agency for audit. Condition: The System's fiscal year ended September 30, 2025. The System's audited financial statements for that year were issued on June 9, 2026. Accordingly, the reporting package was required to be submitted on or before June 30, 2026. The System did not complete and submit the reporting package by that date. Cause: During the System's wind-down period, substantially all internal accounting personnel had been terminated, and responsibility for preparing the financial information and supporting schedules necessary to complete the audit was transitioned to external consultants. Delays in completing the financial close, preparing an accurate Schedule of Expenditures of Federal Awards, and providing supporting documentation prevented timely completion and submission of the reporting package. Effect: The System did not comply with the reporting deadline established by 2 CFR 200.512(a)(1). Recommendation: Management should establish a formal process for monitoring Uniform Guidance reporting deadlines, assigning responsibility for completion of the audit and data collection form, establishing interim milestones for completing the financial statements and Schedule of Expenditures of Federal Awards, and escalating delays to management and those charged with governance sufficiently in advance of the required filing date. Responsible Party: Sidi Cuko, President and Chief Executive Officer. Corrective Actions Taken or Planned: Management agrees with the finding. Management has engaged additional qualified external accounting resources to assist with completing the financial close, preparing the Schedule of Expenditures of Federal Awards, providing the supporting documentation necessary to complete the audit, and completing the data collection form and single audit reporting package. Management has also established additional monitoring and oversight procedures for the System's remaining federal reporting obligations. These procedures include assigning responsibility for required reporting activities; identifying applicable reporting requirements and submission deadlines; establishing interim milestones for completing the financial statements, Schedule of Expenditures of Federal Awards, data collection form, and reporting package; monitoring progress toward completion; and communicating potential delays to management and the Board of Trustees. Management will maintain sufficient accounting resources and appropriate monitoring and oversight procedures through completion of the single audit submission and the System's remaining federal reporting obligations. Implementation Status: Additional external accounting resources and monitoring and oversight procedures were implemented during 2026 and will remain in effect through completion of the single audit submission and the System's remaining federal reporting obligations.
Action taken in response to finding: The City recognizes the importance of ensuring that the required checks are performed and that sufficient evidence of those checks is retained in the procurement files. After receiving this finding in the 2024 audit, the City implemented standard operating proced...
Action taken in response to finding: The City recognizes the importance of ensuring that the required checks are performed and that sufficient evidence of those checks is retained in the procurement files. After receiving this finding in the 2024 audit, the City implemented standard operating procedures for suspension and debarment checks related to purchases involving federal funds. Unfortunately, that procedure did not prevent this finding from occurring due to vendors being used that had already previously been under contract with the City for other projects and services unrelated to federal awards. To correct this issue moving forward, the City will take the following actions: 1) Perform a suspension and debarment check on all vendors currently associated with City contracts. The results of these checks will be documented and maintained in the vendor files with the City’s ERP system, providing a centralized record of the City’s compliance review. 2) Perform an annual suspension and debarment review of all vendors in the City’s ERP system. This process will ensure ongoing controls and compliance, confirming that all vendors within the City’s financial system are not currently suspended or debarred. 3) Perform a suspension and debarment check for all new vendors. Before a new vendor is created within the financial system, a suspension and debarment check will be performed. 4) Continue annual federal grants management training. All employees that have responsibility for managing federal funds will be required to attend a federal grants management training to ensure all employees managing contracts or projects paid for with federal funds understand the latest rules and regulations for compliance. Name(s) of the contact person(s) responsible for corrective action: Jamie Robichaud and Lucas Mellinger Planned completion date for corrective action plan: December 31, 2026
Description of finding The College does not have all required written policies under GLBA including staff training, vendor management, vulnerability testing, and all elements of the written information security program. Corrective Action Plan Elmira College recognizes the deficiency in written polic...
Description of finding The College does not have all required written policies under GLBA including staff training, vendor management, vulnerability testing, and all elements of the written information security program. Corrective Action Plan Elmira College recognizes the deficiency in written policies related to GLBA requirements. The College is dedicated to having formal policies ready for outstanding items by June 30, 2026. In order to address this deficiency while keeping up with normal operations of the Information Technology department, as restructuring has occurred and a new position has been created in order to free up time for the Director of IT Infrastructure and Operations and his team to finish creating the necessary policies in a timely manner. Policies in process are: 1. User Access & Monitoring Process & Procedures 2. Data Retention & Disposal Policy 3. Disaster Recovery Policy 4. Vendor Management Policy The College is also in the process of implementing the Saint Security Suite software for internal vulnerability and penetration testing. Timeline for Implementation of Corrective Action Plan The College will have outstanding policies and procedures on 06/30/2026. The Saint Security Suite software has a goal implementation date of 09/30/2026. Contact Person Kyle Gilbert, VP of Finance & Administration Telephone: 607-735-1765 Email: kgilbert@elmira.edu Thomas Steffes, Director of IT Infrastructure and Operations Telephone: 607-735-1720 Email: tsteffes@elmira.edu
The EPI Center conducted a comprehensive review of all contractors subject to testing and verified, through alternative procedures, that none were suspended or debarred (e.g., verification through SAM.gov and documented vendor validation processes). As a result, all costs associated with these contr...
The EPI Center conducted a comprehensive review of all contractors subject to testing and verified, through alternative procedures, that none were suspended or debarred (e.g., verification through SAM.gov and documented vendor validation processes). As a result, all costs associated with these contracts were determined to be allowable, reasonable, and allocable to the federal award. Accordingly, management concluded that the finding relates to procurement policy implementation, documentation, and compliance processes rather than the allowability, allocability, or eligibility of the expenditures tested.
Management agrees with the finding and has implemented a revised reporting checklist to ensure compliance going forward.
Management agrees with the finding and has implemented a revised reporting checklist to ensure compliance going forward.
Audit Finding Reference: 2025-004 Improve Compliance and Controls Over Reporting Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by the U.S. Department of the Treasury or another federal agency. Before any rem...
Audit Finding Reference: 2025-004 Improve Compliance and Controls Over Reporting Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by the U.S. Department of the Treasury or another federal agency. Before any remaining SLFRF Project and Expenditure Report is submitted, the preparer will reconcile current-period and cumulative expenditures to the general ledger and supporting grant schedule. A second finance official will review the reconciliation and proposed submission. The preparer and reviewer will sign and date the reconciliation, which will be retained with a copy of the submitted report. The same control will be used for a future material federal financial report when circumstances warrant. Planned Implementation Date of Corrective Action: Before the next remaining SLFRF report is submitted; otherwise, upon the next applicable material federal report Person Responsible for Corrective Action: Assistant Town Administrator/Finance Director and Town Accountant, with preparation and review duties appropriately separated
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