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Finding 390725 (2023-001)
Significant Deficiency 2023
Federal Agency: U.S. Department of Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number: SLFRP1026 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Prior ...
Federal Agency: U.S. Department of Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number: SLFRP1026 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Prior Year Finding: No Criteria: Compliance: 2 CFR 200.213 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person (7) Distribution of work to individuals and firms or economic considerations. Control: Per 2 CFR Section 200.303(a), a non‐Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Spotsylvania County Public Schools could not provide supporting documentation that suspension and debarment status was determined prior to award. Questioned Costs: None Context: The suspension and debarment status for one out of two vendors was not retained related to the Coronavirus and Local Fiscal Recovery Funds Program Cause: Spotsylvania County Public Schools did not adhere to established internal controls over suspension and debarment transactions. Effect: In the absence of required documentation, it is not possible to verify that particular vendors were not suspended or debarred at the time that the applicable agreement or contract was finalized. Recommendation: Spotsylvania County Public Schools should ensure that employees are following the requirements they have outlined in their procurement policy. Views of Responsible Officials and Planned Corrective Action: Our procurement office will complete a check list to ensure compliance. Current procedures already require for suspension and debarment verification prior to entering into contracts/agreements with vendors. In this case, the procedure was followed appropriately, but documentation was not retained. Failure to retain a screenshot of the debarment search is easily corrected and staff will ensure such screenshots are saved when the search is completed. Action taken in response to finding: Spotsylvania County Public Schools will ensure the procurement checklist is followed and all supporting documentation is retained on file. Name of contact person (s) responsible for the corrective action plan: Phil Trayer and Jamie Pitts
2023-001 Davis-Bacon Act Compliance CFDA Number 84.041 Program Title Impact Aid Federal Agency U.S. Department of Education Compliance Requirement N. Special Tests and Provisions Finding Type Noncompliance, Significant Deficiency Questioned Costs N/A Repeat Finding: Yes, Similar to 2022-001. Conditi...
2023-001 Davis-Bacon Act Compliance CFDA Number 84.041 Program Title Impact Aid Federal Agency U.S. Department of Education Compliance Requirement N. Special Tests and Provisions Finding Type Noncompliance, Significant Deficiency Questioned Costs N/A Repeat Finding: Yes, Similar to 2022-001. Condition/Context: The District did not retain documentation sufficient to determine the Davis-Bacon compliance clause was included in advertised specifications for one construction project paid with federal Impact Aid funds. Criteria: Department of Labor (DOL) 29 CFR part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction. Non-federal entities shall include in their federally funded construction contracts in excess of $2,000, that are subject to the Wage Rate Requirements of the Davis-Bacon Act, a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the U.S. Department of Labor weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). This reporting is often done using Optional Form WH-347, which includes the required statement of compliance. Action planned in response to finding: The District will evaluate its procedures over procuring construction services to ensure all vendors know when the projects will be utilizing federal funds through the purchase order process or other means. The District will also ensure procurement documentation is utilized to properly disclose the adherence to the Davis Bacon Act.
2023-05: Timeliness of Deposits Name of contact person: Caroline Aultman, Executive Director Corrective Action: All receipts will be deposited in a timely manner once received by the Organization. Proposed completion date: The Board will implement the above procedure immediately.
2023-05: Timeliness of Deposits Name of contact person: Caroline Aultman, Executive Director Corrective Action: All receipts will be deposited in a timely manner once received by the Organization. Proposed completion date: The Board will implement the above procedure immediately.
2023-04: Documentation for expenditures Name of contact person: Caroline Aultman, Executive Director Corrective Action: Appropriate documentation will be kept for all transactions, and all credit card receipts will be obtained for each purchase and kept with the appropriate statement. Proposed...
2023-04: Documentation for expenditures Name of contact person: Caroline Aultman, Executive Director Corrective Action: Appropriate documentation will be kept for all transactions, and all credit card receipts will be obtained for each purchase and kept with the appropriate statement. Proposed completion date: The Board will implement the above procedure immediately.
2023-03: Approval for expenditures Name of contact person: Caroline Aultman, Executive Director Corrective Action: A member of management or the Board of Directors will review and authorize all disbursements. This authorization will be evidenced by the initialing of each disbursement reviewed....
2023-03: Approval for expenditures Name of contact person: Caroline Aultman, Executive Director Corrective Action: A member of management or the Board of Directors will review and authorize all disbursements. This authorization will be evidenced by the initialing of each disbursement reviewed. Proposed completion date: The Board will implement the above procedure immediately.
2023-02: Maintenance of the General Ledger Name of contact person: Caroline Aultman, Executive Director Corrective Action: The books and records of the Organization will continue to be kept on a cash basis throughout the year, with accruals for any receivables and payables, and any other accrua...
2023-02: Maintenance of the General Ledger Name of contact person: Caroline Aultman, Executive Director Corrective Action: The books and records of the Organization will continue to be kept on a cash basis throughout the year, with accruals for any receivables and payables, and any other accruals be made at year end to ensure accurate reporting. Proposed completion date: The Board will implement the above procedure immediately.
2023-01: Segregation of Duties Name of contact person: Caroline Aultman, Executive Director Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to c...
2023-01: Segregation of Duties Name of contact person: Caroline Aultman, Executive Director Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. However, the risk of not segregating certain duties is not worth the additional costs. Nonfinancial employees will be trained and provide some assistance. Proposed completion date: The Board will implement the above procedure immediately.
Condition and Criteria: The Authority’s purpose for existence is providing decent safe and affordable housing to low-income persons. The PHA should establish and maintain policies for the selection of tenants from the waiting list. As documented in the CMR, the PHA did not properly maintain its wa...
Condition and Criteria: The Authority’s purpose for existence is providing decent safe and affordable housing to low-income persons. The PHA should establish and maintain policies for the selection of tenants from the waiting list. As documented in the CMR, the PHA did not properly maintain its waiting list. In addition, the PHA is required to obtain an executed General Depository Agreement for all bank accounts. Tenants were selected and traced to the waiting list. However, as documented in the CMR, the waiting list did not include applicants that had been ineligible when they originally applied. We also were not provided with an executed General Depository Agreement. Due to the change in management, some bank accounts have not been able to update the authorized signers on the accounts. Auditor’s Recommendation: The Authority should update its waiting list requirements and ensure that applicants are selected in the proper order. The PHA should obtain the required General Depository Agreement and make sure that current management and board members have access to all bank accounts. Grantee Response: We will comply with the auditor’s recommendation. Anticipated Completion Date: June 30, 2024
Condition and Criteria: The Authority’s purpose for existence is providing decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of ren...
Condition and Criteria: The Authority’s purpose for existence is providing decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent assistance to be paid on the family’s behalf. HUD regulations prescribe the content of these family files. These requirements consist of the following: f. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility.g. For both family income examinations and reexaminations, obtain and document in the family file third party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent.h. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. i. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies.j. Re-examine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary.We selected twenty public housing tenant files for testing, but the Authority was not able to locate one of the requested files. It appears that the utility allowances had not been reviewed during the fiscal year as required by HUD standards. Auditor’s Recommendation: All files should be maintained and available for review. Utility allowances should be studied to determine if a change should be made. Grantee Response: We will comply with the auditor’s recommendation. We are currently making changes related to our response to the CMR. We have completed our utility allowance study and implemented the new allowance amounts. Anticipated Completion Date: June 30, 2024
Condition and Criteria: PHA and HUD procurement policies require the documentation of the bid process in varying degrees based on the size of the contract or purchase. The PHA is also required to include Davis Bacon requirements in the contracts and monitor its compliance by the contractors. The C...
Condition and Criteria: PHA and HUD procurement policies require the documentation of the bid process in varying degrees based on the size of the contract or purchase. The PHA is also required to include Davis Bacon requirements in the contracts and monitor its compliance by the contractors. The CMR cited disbursements without procurement files totaling $226,057.43. During the audit, we were not provided with copies of the procurement records for these contracts. It also appears that the Davis Bacon standards were not included in the contracts and, as a result, those standards were not monitored.Auditor’s Recommendation: Documentation of expenses and the related procurement should be maintained and accessible for review. In addition, contracts should include Davis Bacon requirements and those requirements should be monitored by the Authority. Grantee Response: We are scheduling training for our staff related to the procurement and contract requirements and will begin better documenting both the procurement and the monitoring. Anticipated Completion Date: June 30, 2024
View Audit 301395 Questioned Costs: $1
Condition and Criteria: Expenses charged to the program should be specific to the operating expenses of the program. Allocation of payroll and related benefits were cited as a concern in the CMR. As a result, costs may not be properly allocated across all programs correctly.Auditor’s Recommendati...
Condition and Criteria: Expenses charged to the program should be specific to the operating expenses of the program. Allocation of payroll and related benefits were cited as a concern in the CMR. As a result, costs may not be properly allocated across all programs correctly.Auditor’s Recommendation: Documentation of expenses and the related procurement should be maintained and accessible for review. In addition, the cost allocation of expenses across programs should be reviewed. Grantee Response: After the end of the fiscal year, we reviewed the allocation of salaries and benefits among programs and provided a journal entry to be recorded as part of the audit adjustments. Anticipated Completion Date: June 30, 2024
Condition and Criteria: The Authority’s purpose for existence is providing decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of ren...
Condition and Criteria: The Authority’s purpose for existence is providing decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent assistance to be paid on the family’s behalf. HUD regulations prescribe the content of these family files. These requirements consist of the following:a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies. e. Re-examine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary.Testing of ten HCV family files, it appeared the housing assistance payments were being computed correctly based on documentation in the file. However, and based on results from the CMR, it appears that incorrect payment standards and outdated utility allowance forms were being used in the computations. Auditor’s Recommendation: A thorough review of tenant files should be performed for the purpose of eliminating the deficiencies. Utility allowances should be studied and determined if a change should be made. Payment standards should be approved and consistently applied. Grantee Response: We will comply with the auditor’s recommendation. We are currently making changes related to our response to the CMR. We have completed our utility allowance study and implemented the new allowance amounts. Anticipated Completion Date: June 30, 2024
Condition and Criteria: The Authority’s purpose for existence is providing decent safe and affordable housing to low-income persons. As such, HUD requires the Authority to comply with special tests and provisions relating to its Housing Choice Voucher program. The Authority must inspect the unit le...
Condition and Criteria: The Authority’s purpose for existence is providing decent safe and affordable housing to low-income persons. As such, HUD requires the Authority to comply with special tests and provisions relating to its Housing Choice Voucher program. The Authority must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control re-inspections. The Authority must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). In addition, the PHA is required to obtain an executed General Depository Agreement for all bank accounts. During our testing of 10 HCV tenant files, we noted annual HQS inspections for all the tested units. However, the Authority did not perform the required quality control re-inspections. Tenants were selected and traced to the waiting list. However, as documented in the CMR, the waiting list did not include applicants that had been ineligible when they originally applied. We also were not provided with an executed General Depository Agreement. Due to the change in management, some bank accounts have not been able to update the authorized signers on the accounts. Auditor’s Recommendation: The Authority should perform housing quality control re-inspections according to HUD guidelines. The Authority should update its waiting list requirements and ensure that applicants are selected in the proper order. The PHA should obtain the required General Depository Agreement and make sure that current management and board members have access to all bank accounts. Grantee Response: We will comply with the auditor’s recommendation. Anticipated Completion Date: June 30, 2024
Corrective Action Plan: The District has implemented financial policies and procedures to ensure a timely independent audit process and subsequent timely filing of the audit with the Federal Audit Clearinghouse.
Corrective Action Plan: The District has implemented financial policies and procedures to ensure a timely independent audit process and subsequent timely filing of the audit with the Federal Audit Clearinghouse.
Corrective action plan includes more thorough monitoring on the part of executive director and program director to periodically and regularly monitor and assess that the required two-thirds of recipients meet the requirements for being first generation college attendees and come from low income fami...
Corrective action plan includes more thorough monitoring on the part of executive director and program director to periodically and regularly monitor and assess that the required two-thirds of recipients meet the requirements for being first generation college attendees and come from low income families.
FINDING 2023-010 Finding Subject: ESSER (Education Stabilization Fund) – Allowable Activities, Allowable Costs/Cost Principles Federal Programs: Education Stabilization Fund Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the S...
FINDING 2023-010 Finding Subject: ESSER (Education Stabilization Fund) – Allowable Activities, Allowable Costs/Cost Principles Federal Programs: Education Stabilization Fund Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Activities Allowed and Allowable Costs/Cost Principles compliance requirement. The School Corporation did not have internal controls in place over payroll disbursements. A detailed report of payroll disbursements paid without evidence of review and approval by a knowledgeable person. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: Develop process and procedures for verifying payroll disbursements from grant funds. On a monthly basis, Payroll coordinator will print payroll disbursements from federal grant funds to be reviewed, verified and signed off by Superintendent/CFO. Anticipated Completion Date: To begin immediately, March 2024
FINDING 2023-009 Finding Subject: Special Education Cluster - Earmarking Summary of Finding: The School Corporation is a member of the Wabash Miami Area Programs for Exceptional Children (Cooperative). During fiscal year 2021-2022 and 2022-2023, the Cooperative operated the special education program...
FINDING 2023-009 Finding Subject: Special Education Cluster - Earmarking Summary of Finding: The School Corporation is a member of the Wabash Miami Area Programs for Exceptional Children (Cooperative). During fiscal year 2021-2022 and 2022-2023, the Cooperative operated the special education programs and spent the federal money on behalf of all its members. As the grant agreements were between the Indiana Department of Education (IDOE) and each member school, the School Corporation was responsible for ensuring and providing oversight of the Cooperative. However, there was inadequate oversight performed by the School Corporation in order to ensure compliance with the Matching Level of Effort, Earmarking compliance requirement. The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the earmarking requirements. The Cooperative did not have adequate procedures in place to ensure that the required level of expenditures for non-public school students with disabilities was met for each member school. The Cooperative did not have effective internal controls to ensure non-public school expenditures were appropriately identified and reported. The Non-Public Proportionate Share expenditures for the 20611-054-PN01, 20619-054-PN01, 21611- 054-PN01 and 21619-054-PN01 grant awards could not be verified for the individual member schools. The non-public school share funds for all member schools were comingled and the aggregate amount of expenditures was then allocated to the member schools on a percentage basis. These allocations were the amounts reported to IDOE. As such, we were unable to identify which expenditures were for each school in order to verify the minimum amount per the grant award was expended and properly reported to IDOE as required. The lack of internal controls and noncompliance were isolated to the 20611-054-PN01, 20619-054- PN01, 21611-054-PN01 and 21619-054-PN01 grant awards. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: The district will collaborate with the SPED co-op to implement controls to ensure compliance with earmarking requirements. Anticipated Completion Date: To be completed by July 2024
FINDING 2023-008 Finding Subject: Special Education Cluster - Procurement and Suspension and Debarment Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requirements relat...
FINDING 2023-008 Finding Subject: Special Education Cluster - Procurement and Suspension and Debarment Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Procurement and Suspension and Debarment compliance requirement. Procurement Federal regulations allow for informal procurement methods when the value of the procurement for property or services does not exceed the simplified acquisition threshold, which is set at $250,000 unless a lower, more restrictive threshold is set by a non-Federal entity. As Indiana Code has set a more restrictive threshold of $150,000, informal procurement methods are permitted when the value of the procurement does not exceed $150,000. This informal process allows for methods other than the formal bid process. The informal process is divided between two methods based on thresholds. Micro-purchases, typically for those purchases $10,000 or under, and small purchase procedures for those purchases above the micro purchase threshold, but below the simplified acquisition threshold. Micro-purchases may be awarded without soliciting competitive price rate quotations. If small purchase procedures are used, then price or rate quotations must be obtained from an adequate number of qualified sources. The School Corporation had not designed or implemented a procurement policy for the purchases in the audit period. In addition, the school corporation did not award a contract for a purchase of $75,387. Suspension and Debarment Prior to entering into subawards and covered transactions with federal award funds, recipients are required to verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded. "Covered transactions" include, but are not limited to, contracts for goods and services awarded under a non-procurement transaction (i.e., grant agreement) that are expected to equal or exceed $25,000. The verification is to be done by checking the SAMs exclusions, collecting a certification from that vendor, or adding a clause or condition to the covered transaction with that vendor. The School Corporation had not designed or implemented internal controls, policies, or procedures to ensure that vendors were not suspended or debarred prior to entering into a covered transaction. One covered transaction that equaled or exceeded $25,000 was identified and selected for testing. Transactions to the vendor totaled $75,387; the School Corporation did not verify the vendor’s suspension and debarment status prior to payment. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us INDIANA STATE BOARD OF ACCOUNTS 50 Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: Create internal controls (using either SAMS website, certification from vendor, or clause/condition in contract) to ensure that vendors have been vetted and have not been suspended or debarred. Also develop processes to ensure that contracts for purchases over $50,000 are approved by the School Board. Anticipated Completion Date: To begin immediately, March 2024
FINDING 2023-007 Finding Subject: Special Education Cluster - Equipment and Real Property Management Summary of Finding: The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effectiv...
FINDING 2023-007 Finding Subject: Special Education Cluster - Equipment and Real Property Management Summary of Finding: The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. A property record or capital asset listing which would include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property is to be maintained for assets purchased that exceed the School Corporation's capitalization threshold. The School Corporation purchased on piece of equipment in the amount of $75,387 with Special Education Funds. The listing did not include all the required elements for the one piece of equipment purchased. The required elements are the description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: Develop processes and procedures to ensure that purchases made with federal dollars are correctly recorded on capital asset ledger. Anticipated Completion Date: To begin immediately, March 2024
FINDING 2023-006 Finding Subject: Special Education Cluster - Activities Allowed, Allowable Costs/Cost Principles, Period of Performance Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure ...
FINDING 2023-006 Finding Subject: Special Education Cluster - Activities Allowed, Allowable Costs/Cost Principles, Period of Performance Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Activities Allowed, Allowable Costs/Cost Principles, and Period of Performance compliance requirements. The School Corporation did not have internal controls in place over payroll disbursements. A detailed report of payroll disbursements was paid without evidence of review and approval by a knowledgeable person. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: Develop process and procedures for verifying disbursements from grant funds. On a monthly basis, Corporation Treasure will print expenditure report from federal grant funds to be reviewed, verified and signed off by Superintendent/CFO. Anticipated Completion Date: To begin immediately, March 2024
FINDING 2023-005 Finding Subject: Child Nutrition Cluster - Special Tests & Provisions: School Food Service Accounts Summary of Finding: The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would li...
FINDING 2023-005 Finding Subject: Child Nutrition Cluster - Special Tests & Provisions: School Food Service Accounts Summary of Finding: The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance for Special Tests & Provisions: School Food Service Accounts. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: On a monthly basis, Corporation Treasure will print receipt postings to be reviewed, verified and signed off by Superintendent/CFO. Anticipated Completion Date: To begin immediately, March 2024
FINDING 2023-004 Finding Subject: Child Nutrition Cluster - Procurement and Suspension and Debarment Summary of Finding: The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effectiv...
FINDING 2023-004 Finding Subject: Child Nutrition Cluster - Procurement and Suspension and Debarment Summary of Finding: The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance for Procurement and Suspension and Debarment. For covered transactions, the School Corporation is required to verify that the person with whom they wish to do business with is not excluded or disqualified. In Fiscal Year 2022, there was one vendor where the School Corporation had one covered transaction in the amount of $55,285, and in Fiscal Year 2023, there were two vendors where the School Corporation had four covered transactions in the amount of $130,257. During testing and inquiry of the School Corporation, it was determined that for all three vendors who had a total of five covered transactions in the amount of $185,542 during the audit period, the School Corporation did not verify if they were excluded or disqualified prior to entering into a covered transaction. In Fiscal Year 2022, the School Corporation purchased a box truck in the amount of $55,285; however, the School Corporation did not award a contract to the vendor per Indiana Code and the School Corporation was unable to provide supporting documentation to support that three quotes were obtained prior to purchasing the box truck. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: Create internal controls (using either SAMS website, certification from vendor, or clause/condition in contract) to ensure that vendors have been vetted and have not been suspended or debarred. Also develop processes to ensure that contracts for purchases over $50,000 are approved by the School Board. Anticipated Completion Date: To begin immediately, March 2024
FINDING 2023-003 Finding Subject: Child Nutrition Cluster - Allowable Activities and Allowable Costs Summary of Finding: The School Corporation had not properly designed or implemented a system of internal control, which would include appropriate segregation of duties, that would likely be effective...
FINDING 2023-003 Finding Subject: Child Nutrition Cluster - Allowable Activities and Allowable Costs Summary of Finding: The School Corporation had not properly designed or implemented a system of internal control, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting noncompliance related to allowable activities and allowable costs. The School Corporation purchased two pieces of equipment that were over $5,000 each in Fiscal Year 2023 without approval from the Federal awarding agency or pass-through entity. The first piece of equipment was a liftgate in the amount of $6,906, and the second piece of equipment was a vehicle in the amount of $7,500 for a combined total of $14,406. The financial management system of each non-federal entity must provide written procedures for determining allowability of costs in accordance with the federal regulations and the terms and conditions of the Federal Award. The policy should provide clear guidance as to what costs constitute appropriate direct and indirect charges to federal awards as well as provide for consistency in charging practices across the School Corporation. The School Corporation did not have an allowable costs policy outlining the School Corporation's processes and policies with regards to costs charged to federal grants. Contact Person Responsible for Corrective Action: Amy K. Sivley Contact Phone Number and Email Address: 260-563-2151; sivleya@apaches.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: Retrain Food Service Director and Assistant Food Service Director on the process for purchasing equipment. The district will also develop and pass an Allowable Costs Policy. Anticipated Completion Date: To be completed by July 1, 2024
View Audit 301362 Questioned Costs: $1
CONTACT PERSON RESPONSIBLE FOR CORRECTIVE ACTION: Gabrielle Krol, Business Manager CORRECTIVE ACTION PLAN (concerning finding 2023-001: Special Tests and Provisions-Wage Rate Requirements) CORRECTIVE ACTION: Maine School Administrative District 52 has already begun implementing the corrective ac...
CONTACT PERSON RESPONSIBLE FOR CORRECTIVE ACTION: Gabrielle Krol, Business Manager CORRECTIVE ACTION PLAN (concerning finding 2023-001: Special Tests and Provisions-Wage Rate Requirements) CORRECTIVE ACTION: Maine School Administrative District 52 has already begun implementing the corrective action plan for the finding related to the Education Stabilization Fund. Our FY 2022 Audit was not completed until April 2023, which was after this current finding had already taken place. During the FY 2022 Audit process, it was brought to our attention that MSAD 52 was in need of ensuring compliance with the prevailing wage requirements when Federal Funds were being used, also known as the Davis Bacon Act. When this was brought to our attention, we began providing all contractors who were bidding on work at the district with the current prevailing wage information for Androscoggin County. In addition, we had each contractor sign the certification that they would pay all employees working on any project at MSAD 52 the prevailing wage. In addition, we are now requiring all contractors provide certified timesheets prior to releasing payment for the work. ANTICIPATED COMPLETION DATE: This has begun effective March 2024.
Finding 390658 (2023-001)
Significant Deficiency 2023
Criteria: CODE OF FEDERAL REGULATIONS, Title 49 – TRANSPORTATION, Part 18 – UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS, Subpart C – Post-Award Requirements: 18.41 Financial Report (a) General (4), Due date. When reports are required o...
Criteria: CODE OF FEDERAL REGULATIONS, Title 49 – TRANSPORTATION, Part 18 – UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS, Subpart C – Post-Award Requirements: 18.41 Financial Report (a) General (4), Due date. When reports are required on a quarterly or semiannual basis, they will be due 30 days after the reporting period. When required on an annual basis, they will be due 90 days after the grant year. Final reports will be due 90 days after the expiration or termination of grant support. 18.58 (a) General. The Federal agency will close out the award when it determines that all applicable administrative actions and all required work of the grant has been completed. 18.50 (b) Reports. Within 90 days after the expiration or termination of the grant, the grantee must submit all financial, performance, and other reports required as a condition of the grant. Upon request by the grantee, Federal agencies may extend this time frame. These may include but are not limited to: (1) Final performance or progress report, (2) Financial Status Report (SF 269) or Outlay Report and Request for Reimbursement for Construction Programs (SF-271) (as applicable), (3) Final request for payment (SF-270) (if applicable), and (4) Invention disclosure (if applicable). U.S. OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-133—AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS (OMB Circular A-133), Subpart C— Auditees, Section .300—Auditee Responsibilities (b) Maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a material effect on each of its federal programs. Condition: For the Airport Improvement Program (AIP), the City did not submit the reports within the required deadline: Report Type Award Number Period Date Due Date Submitted SF-425 Financial 3-06-0034-018-2020 1/1/2022 - 12/31/2022 12/31/2022 Not submitted SF-270 Financial 3-06-0034-018-2020 1/1/2022 - 12/31/2022 12/31/2022 Not submitted FAA Form 5370-1 3-06-0034-018-2020 7/1/2022 - 9/30/2022 10/30/2022 Not submitted FAA Form 5370-1 3-06-0034-018-2020 10/1/2022 - 12/31/2022 1/30/2023 Not submitted FAA Form 5370-1 3-06-0034-018-2020 1/1/2023 - 3/31/2023 4/30/2023 Not submitted FAA Form 5370-1 3-06-0034-018-2020 4/1/2023 - 6/30/2023 7/30/2023 Not submitted Four (4) financial reports were tested and all reports were not submitted by the required deadline. Corrective Action Plan: City management concurs with the auditor’s comments and recommendations. The City will take steps to improve identification and monitoring of required grantor reporting deadlines. Anticipated Completion date: June 30, 2024 Name of Contact Person: Michael Lima, Director of Finance
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