Corrective Action Plans

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The issue noted primarily reflects isolated lapses in documentation and oversight during a period of staff transition. Since that time, management has reinforced internal controls over both payroll and non-personnel expenditures to ensure that allocations are properly documented, reviewed, and appro...
The issue noted primarily reflects isolated lapses in documentation and oversight during a period of staff transition. Since that time, management has reinforced internal controls over both payroll and non-personnel expenditures to ensure that allocations are properly documented, reviewed, and approved before posting. In addition, all staff involved in charging costs to federal grants are being retrained on documentation standards and cost allocation procedures. The two OTPS invoices cited by the auditors were for overhead costs (payroll processing fees and general liability insurance) that are allocated based on allocation percentages and typically do not go through a separate approval process. The Agency is reinforcing supervisory review to ensure journal entries are created and approved by separate individuals and the accounting system was updated to prevent all staff members (without exception) from initiating and approving entries.
Recommendation: We recommend that the City review and update internal controls over the completion and submission of monthly program reports to ensure the accuracy of the information being reported and to ensure that supporting underlying documentation is properly retained. As part of this process, ...
Recommendation: We recommend that the City review and update internal controls over the completion and submission of monthly program reports to ensure the accuracy of the information being reported and to ensure that supporting underlying documentation is properly retained. As part of this process, the City should consider utilizing members of the Finance Department as the monthly reports contain certain financial information. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: RBHA has established a process by which Housing will copy Finance on monthly VMS reports provided to the financial consultant for the VMS submissions; this will both document timing and ensure additional review. In addition, RBHA and Finance are coordinating to revise the City’s account structure for Housing-related expenses. Better aligning the City’s account setup with VMS reporting requirements will help ensure that VMS submissions are adequately supported and tie cleanly to the City’s General Ledger. Names of the contact persons responsible for corrective action: Imelda Delgado (Housing Manager), Grace Liang (Senior Accountant) Planned completion date for corrective action plan: January 2026.
Recommendation: We recommend the City establish procedures to ensure that the review and approval processes are clearly documented within each tenant file. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The RBHA w...
Recommendation: We recommend the City establish procedures to ensure that the review and approval processes are clearly documented within each tenant file. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The RBHA will establish procedures to monitor and ensure proper file review. RBHA has created a new checklist for a supervising team member to review intake files for accuracy, to document approval, and to release the Housing Assistance Payment. RBHA will maintain records of the signed checklist for each tenant file. Name of the contact person responsible for corrective action: Imelda Delgado, Housing Manager Planned completion date for corrective action plan: January 2026.
Recommendation: We recommend that the City review and update internal controls to ensure that supporting documentation for allowable time charges to grant programs is properly maintained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in...
Recommendation: We recommend that the City review and update internal controls to ensure that supporting documentation for allowable time charges to grant programs is properly maintained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Staff has updated timekeeping for individuals charging partial time to the Housing Section 8 program to track actual hours spent rather than through budget allocation. Staff has in addition identified a method by which the City can produce supervisor approval documentation through the financial system’s electronic workflow. Names of the contact persons responsible for corrective action: Stephanie Meyer (Finance Director), Elizabeth Hause (Community Services Director) Planned completion date for corrective action plan: December 30, 2025
Recommendation: We recommend that the City review and update internal controls to ensure that the Financial Data Schedule (FDS) is completed and submitted in a timely manner Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to f...
Recommendation: We recommend that the City review and update internal controls to ensure that the Financial Data Schedule (FDS) is completed and submitted in a timely manner Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The City has contracted a financial consultant to prepare and submit financials monthly and annually. Internally, RBHA staff has established timelines for data preparation in advance of FDS deadlines to ensure the consultant is prepared to submit the financial reports in a timely manner. Staff has set ongoing calendar reminders to monitor and coordinate with all the parties involved the FDS submissions. Name of the contact person responsible for corrective action: Imelda Delgado, Housing Manager Planned completion date for corrective action plan: January 2026
Recommendation: We recommend that the City review and update internal controls to ensure that supporting documentation for re-inspections and failed inspections is complete and properly reviewed and maintained. Explanation of disagreement with audit finding: There is no disagreement with the audit f...
Recommendation: We recommend that the City review and update internal controls to ensure that supporting documentation for re-inspections and failed inspections is complete and properly reviewed and maintained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The RBHA is updating the administrative policy which includes a timeline for inspection follow-up within 30 days and scheduling re-inspections within five business days from the date requested. The revised policies include a description of the types of inspections to be conducted by the Housing Authority, the steps that will be taken when units fail, and identifies conditions which are considered to be life-threatening. The current RBHA staff will review and implement the revised policies to ensure inspections are completed in a timely manner and proper follow up is administered. The Housing Manager is already implementing protocols for the review and approval of inspections conducted by staff to ensure compliance. In addition, quality control inspections are regularly conducted by a Team Lead, a process that is also required for the annual Section Eight Management Assessment Program (SEMAP) submitted to HUD. The updated administrative policies include a chapter for the National Standards for the Physical Inspection of Real Estate (NSPIRE) that will sunset and replace the Housing Quality Standards (HQS) inspection process scheduled for February 1, 2027. Name of the contact person responsible for corrective action: Imelda Delgado, Housing Manager Planned completion date for corrective action plan: January 2026
Capitalization Grants for Clean Water State Revolving Funds – Assistance Listing No. 66.468 COVID 19 ARPA Local Fiscal Recovery EXP – Assistance Listing No. 21.027 Recommendation: We recommend the Town design controls to ensure an adequate review process is in place to review potential contractors t...
Capitalization Grants for Clean Water State Revolving Funds – Assistance Listing No. 66.468 COVID 19 ARPA Local Fiscal Recovery EXP – Assistance Listing No. 21.027 Recommendation: We recommend the Town design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred in accordance with 2 CFR section 200.213. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will implement a process to review vendors prior to entering into a contract to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Name(s) of the contact person(s) responsible for corrective action: Julie Chapman, Director of Finance Planned completion date for corrective action plan: December 2025 Any questions regarding this plan, please call Julie Chapman at (860) 848-6714.
COVID 19 ARPA Local Fiscal Recovery EXP – Assistance Listing No. 21.027 Recommendation: We recommend the Town design controls to ensure all documentation is retained in accordance with the Uniform Guidance record retention requirements under 2 CFR 200.334. Explanation of disagreement with audit find...
COVID 19 ARPA Local Fiscal Recovery EXP – Assistance Listing No. 21.027 Recommendation: We recommend the Town design controls to ensure all documentation is retained in accordance with the Uniform Guidance record retention requirements under 2 CFR 200.334. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will implement a policy to ensure all documentation is retained in according with Uniform Guidance. Name(s) of the contact person(s) responsible for corrective action: Julie Chapman, Director of Finance Planned completion date for corrective action plan: December 2025
Finding Reference Number: 2024-004 Description of Finding: IYT submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in December 2025, nine months after it was due. IYT was required to submit its Audited Financial Statements and Single Audit Report to the fe...
Finding Reference Number: 2024-004 Description of Finding: IYT submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in December 2025, nine months after it was due. IYT was required to submit its Audited Financial Statements and Single Audit Report to the federal audit clearinghouse no later than March 31, 2025. Federal awarding agencies may deny future federal awards or subject IYT to additional cash monitoring requirements. Statement of Concurrence or Nonconcurrence: We concur with the audit finding. Corrective Action: IYT acknowledges the late submission of the FY23-24 Single Audit and recognizes delays in the FY24-25 audit timeline as well. This reflects a breakdown in internal ownership and process awareness related to the Single Audit. IYT takes the full responsibility for implementing new internal systems, including a detailed audit readiness timeline, early preparation of the SEFA, and clear role assignments. To prevent future late submissions and ensure the process is sustainable regardless of staff turnover, IYT will implement cross-training staff members to ensure that moving forward, there are no dependency issues leading to the late start and submission of the audited financials. IYT will start the audit fieldwork in January 2026 with final submission to the federal clearinghouse by the March 31, 2026 deadline.
Effective immediately, Berne Union will require PaySchools to provide its policies and procedures governing the eligibility determination process for free, reduced, and paid meal status. These documents will be reviewed to ensure compliance with federal standards for the Free and Reduced-Price Lunch...
Effective immediately, Berne Union will require PaySchools to provide its policies and procedures governing the eligibility determination process for free, reduced, and paid meal status. These documents will be reviewed to ensure compliance with federal standards for the Free and Reduced-Price Lunch Program.
Conditions – During 2024, the Organization did not maintain documentation related to how they chose a contractor for construction projects such as how they chose contractors to get bids from, how many bids were obtained, detailed bid information, and what factors they considered in choosing a contra...
Conditions – During 2024, the Organization did not maintain documentation related to how they chose a contractor for construction projects such as how they chose contractors to get bids from, how many bids were obtained, detailed bid information, and what factors they considered in choosing a contractor. No documentation exists showing considerations of price, contingencies, length of contract, and perceived risks. Recommendation – We recommend maintaining documentation supporting the compliance with federal regulations for all expenditures of federal funds. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the finding and appreciates the auditor’s recommendation. The Organization exceeded the Single Audit threshold for the first time in 2024 due to a one-time coronavirus-related grant. As a result, management was not fully aware of the federal procurement documentation requirements applicable to these funds. To address this matter, management has implemented procedures to ensure that procurement documentation supporting compliance with federal regulations is maintained for all federal expenditures. These procedures include staff training on federal grant compliance requirements, enhanced oversight of procurement activities, and the use of standardized documentation and retention practices. Management believes these corrective actions will mitigate the risk of future noncompliance and strengthen overall federal grant administration.
Conditions – During 2024, the Organization did not have a written procurement policy. Recommendation – We recommend that the Organization develop and implement a written procurement policy. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the finding and apprec...
Conditions – During 2024, the Organization did not have a written procurement policy. Recommendation – We recommend that the Organization develop and implement a written procurement policy. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the finding and appreciates the auditor’s recommendation. The Organization exceeded the Single Audit threshold for the first time in 2024 due to a one-time coronavirus-related grant. As a result, management was not fully aware of the federal procurement documentation requirements applicable to these funds. To address this matter, management has implemented procedures to ensure that procurement documentation supporting compliance with federal regulations is maintained for all federal expenditures. These procedures include staff training on federal grant compliance requirements, enhanced oversight of procurement activities, and the use of standardized documentation and retention practices. Management believes these corrective actions will mitigate the risk of future noncompliance and strengthen overall federal grant administration.
Conditions – In 2024, the Organization did not have proper segregation of duties. The Accountant performed, or had access to, all major functions. This individual processed deposits, recorded receipts in the accounting system and reconciled the bank accounts. We did not see evidence of formal review...
Conditions – In 2024, the Organization did not have proper segregation of duties. The Accountant performed, or had access to, all major functions. This individual processed deposits, recorded receipts in the accounting system and reconciled the bank accounts. We did not see evidence of formal review of the bank reconciliations by someone other than the Accountant. This individual also approved expenses and processed payments of expenses. We did not see any evidence of the review of approval of expenditures on the invoices. The Accountant did not sign checks, but there is no evidence that the check signer reviewed the supporting documentation and the Organization’s policies do not indicate the check signer needed to review the supporting documentation. In 2024, journal entries made to the accounting records were made by the Accountant and were not reviewed by a second individual. Recommendation – While we recognize the challenges that smaller organizations such as the Boys and Girls Clubs of Western Nevada may face in fully segregating duties, we recommend taking steps to reduce control gaps wherever feasible. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the audit findings and agrees that the organization’s rapid and significant growth during 2024 placed increased demands on existing accounting systems, staffing capacity, and internal controls. While financial operations remained functional during this period of expansion, appropriate measures and controls were not fully scaled to match the organization’s growth and increasing complexity. Management views this as a capacity and controls issue driven by unprecedented growth, rather than a lack of commitment to financial accountability or compliance. Leadership recognizes the importance of strengthening internal controls to ensure accurate financial reporting, safeguard assets, and maintain strong governance practices moving forward. To address these findings, management will utilize the SAS 115 letter issued by the auditor as a roadmap for corrective action. Specific planned actions include implementing enhanced internal control procedures, segregating duties where feasible, and improving documentation of accounting processes. In addition, management will increase the Finance Committee's role and oversight to provide regular review and governance of financial operations, policies, and controls. The organization will also implement control sampling and periodic reviews to validate the accuracy and consistency of accounting functions, identify potential weaknesses early, and ensure corrective actions are effective. These measures, combined with ongoing monitoring and committee oversight, will strengthen financial management practices and position the organization to responsibly support continued growth. Management is committed to the timely implementation of these corrective actions and to maintaining strong fiscal stewardship consistent with the organization’s mission and fiduciary responsibilities.
The City will work to ensure all reports for grant funding are completed.
The City will work to ensure all reports for grant funding are completed.
Name of Contact Person: Stephanie Hanvey, Director, Regional Housing, Western Piedmont Council of Government Corrective Action: With the merger of the City of Hickory public Housing Authority into the Western Piedmont Council of Governments affected July 1, 2025, staff have impacted new processes to...
Name of Contact Person: Stephanie Hanvey, Director, Regional Housing, Western Piedmont Council of Government Corrective Action: With the merger of the City of Hickory public Housing Authority into the Western Piedmont Council of Governments affected July 1, 2025, staff have impacted new processes to make sure that all the HPHA files and past processes are brought into compliance. Reviewing PIC inspection delinquency reports and scheduling overdue inspections, beginning with the most delinquent cases, while also coordinating current annual inspections with annual reexaminations to maintain compliance. Staff is reviewing the PIC delinquent annual reexamination report and completing overdue examinations in order of priority, and an annual reexamination checklist has been added to ensure all required documentation is collected. An audit process has been implemented for every examination to strengthen oversight, and quarterly quality control inspections are being conducted to monitor the inspection process. In addition, staff review EIV reports monthly to verify the integrity of the client information-including multiple subsidy, SSN screening, and income reporting-and monitor SACS software reports each month to ensure recertification are completed within required timelines. Proposed Completion Date: Immediately
2024-003 ARPA Annual Performance Report Criteria: The federal grant agreement for the Coronavirus State and Local Fiscal Recovery Funds grant (AL 21.027), along with relevant federal program regulations, mandates the submission of annual performance reports. These reports are essential for demonstra...
2024-003 ARPA Annual Performance Report Criteria: The federal grant agreement for the Coronavirus State and Local Fiscal Recovery Funds grant (AL 21.027), along with relevant federal program regulations, mandates the submission of annual performance reports. These reports are essential for demonstrating compliance and the effective use of federal funds in achieving program objectives. Condition/Context: Pierce County failed to submit its annual performance report for the fiscal year ended December 31, 2024, for the CSLFRF grant to the U.S. Department of the Treasury. The performance report, a required element of the grant agreement, documents the progress and outcomes of the program. As of the date of this report, the performance report has not been submitted. Views of Responsible Officials and Planned Corrective Action: We concur and will implement the appropriate controls to comply with the grant requirements. State Law Compliance - Expenditures exceed appropriations Views of Responsible Officials and Planned Corrective Action: We concur. We will implement controls to ensure proper review of the County's budgets and appropriately amend the budgets throughout the year so that expenditures do not exceed appropriations at the legal level of budgetary control. Please let us know if additional information is needed. Thank you,
Finding 2024-010 Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds passed-through the State Water Resources Control Board Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: A00059, 2024 Finding Summary: Allowable Cos...
Finding 2024-010 Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds passed-through the State Water Resources Control Board Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: A00059, 2024 Finding Summary: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control Corrective Action Plan: Prior to the 2024 audit process being completed, the city experienced significant staff turnover particularly in the Finance Department. The city is in the process of recruiting various key positions including Finance Director, Deputy Finance Director and Accounting Supervisor. This will ensure all proper processes are followed. Responsible Individual(s): Finance Director (short-term part-time staff); Deputy Finance Director (Vacant); Purchasing Manager (Vacant) Anticipated Completion Date: January 2026
Finding 2024-009 Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds passed-through the State ...
Finding 2024-009 Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: 2021 Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds passed-through the State Water Resources Control Board Federal Financial Assistance Listing Number: 21.027 Federal Grantor: U.S. Department of Treasury Award No. and Year: A00059, 2024Finding Summary: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control and Instance of Non-Compliance Corrective Action Plan: The city is in the process of updating its Purchasing Policy and will include language on allowable costs and cost principles that are compliant with Title 2 C.F.R. Section 200. The process may be delayed with the absence of a Purchasing Manager. Responsible Individual(s): Finance Director (short-term part-time staff); Deputy Finance Director (Vacant); Purchasing Manager (Vacant) Anticipated Completion Date: December 2026
The 2024 audit was delayed for multiple reasons including a transition in responsibility for our accounting services which have greatly improved our overall financial management system, a mis-understanding of the audit period as there was an authorization to change our fiscal year which did not full...
The 2024 audit was delayed for multiple reasons including a transition in responsibility for our accounting services which have greatly improved our overall financial management system, a mis-understanding of the audit period as there was an authorization to change our fiscal year which did not fully process, resulting in the need to move forward with the audit presented here, and delays in information sharing between staff and the audit team. The Board expects to have all records and information necessary to conduct a timely audit for 2025.
Management acknowledges the condition noted regarding the maintenance of accounting records on a cash basis rather than an accrual basis in 2024, as well as the absence of a formal budget for the year under audit. We recognize that these factors contributed to errors in the financial records and res...
Management acknowledges the condition noted regarding the maintenance of accounting records on a cash basis rather than an accrual basis in 2024, as well as the absence of a formal budget for the year under audit. We recognize that these factors contributed to errors in the financial records and resulted in the need for several audit adjustments. To address the underlying causes identified, management is implementing the following corrective actions: • Transition to Accrual Basis Accounting: We have revised our accounting processes to ensure that all financial activity is recorded in accordance with generally accepted accounting principles (GAAP). This includes recording expenses in the period in which they are incurred and ensuring that all reconciliations reflect accrual basis adjustments. • Grant Reconciliation Oversight: We have strengthened our review of grant reconciliations and indirect cost calculations to ensure accuracy and compliance with grant requirements. The Treasurer reviews all reconciliations and submits same to the Board for review and approval on a monthly basis. • Timely Period End Close: Management is implementing a structured month end and year end close process to ensure that all reconciliations and supporting schedules are completed and reviewed promptly after period close. • Budget Preparation: Approximately 90% of all revenue and appropriations are driven by grant programs with specific spending requirements. As such, there are limited funds subject to the development of an operating budget outside of grant funding. However, the Board of Director's has initiated the development of an annual budget related to the discretionary funding.
2024-004 ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS / COST PRINCIPALS Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21...
2024-004 ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS / COST PRINCIPALS Program: Education Stabilization Fund – ESSER II and ESSER III Federal Assistance Listing Number: 84.425 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESSII-111175-01A and 21FESIII-111175-01A Questioned Costs: None Type of Finding: Material weakness in internal controls Condition/Context: For five of seven journal entries tested for the Education Stabilization Fund program, the District did not have documentation supporting that the entry was reviewed and approved by an individual separate from the preparer. Corrective Action: The District will review its process for preparing and recording journal entries to include a step to have the entries reviewed and approved by someone other than the preparer. In addition, the journal entries will include supporting schedules and documentation to explain why the entry is being prepared. Planned completion date for corrective action plan: For the period ending June 30, 2025. Name of the contact person responsible for corrective action: Dorene Mudrow, Superintendent
Western-Washtenaw Area Value Express, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2024. Auditor: Maner Costerisan, 2425 E. Grand River Ave, Suite 1, Lansing, Michigan 48912 Audit period: The funding from September 30, 2024 schedule of findings and ...
Western-Washtenaw Area Value Express, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2024. Auditor: Maner Costerisan, 2425 E. Grand River Ave, Suite 1, Lansing, Michigan 48912 Audit period: The funding from September 30, 2024 schedule of findings and questioned costs is discussed below. The finding is number consistently with the number assigned in the schedule. Finding - noncompliance with the Uniform Guidance Recommendation: As this was WAVE’s first Single Audit, management was still developing familiarity with Uniform Guidance audit submission requirements. The late submission resulted from an incomplete understanding of the deadlines associated with filing the Data Collection Form (DCF) and audit reporting package with the Federal Audit Clearinghouse (FAC). Action to be taken: To ensure timely submissions in future periods, management is implementing the following corrective actions: 1.Establish a formal written procedure for completing and filing the DCF and Single Auditreporting package in accordance with 2 CFR 200.512. 2.Assign a responsible individual within the finance department to oversee the Single Auditsubmission process and monitor related deadlines. 3.Create a compliance calendar that includes required federal reporting deadlines, including the30-day and 9-month submission rules. 4.Implement an internal review and approval step to confirm the completeness and accuracy of allrequired components prior to submission and to verify that submission occurs within therequired timeframe. 5.Provide training to finance personnel on federal audit reporting requirements and the FACsubmission process. These procedures will ensure future Single Audit submissions are completed on time and in accordance with Uniform Guidance. Anticipated Completion Date: December 31, 2025
Corrective Action Plan – Section III: Cash Management Condition: Two instances were identified where advance funds were not disbursed within a reasonable period after receipt, and reimbursement requests lacked secondary approval and supporting documentation. Cause: This particular award was an excep...
Corrective Action Plan – Section III: Cash Management Condition: Two instances were identified where advance funds were not disbursed within a reasonable period after receipt, and reimbursement requests lacked secondary approval and supporting documentation. Cause: This particular award was an exception because the funder requested that The Ocean Foundation draw the remaining balance of funds as the project was closing. Additionally, disbursement of large grant amounts was delayed due to a temporary reduction in staff. Effect: Delays in disbursement and lack of documentation increased the risk of noncompliance with Federal cash-management requirements. Corrective Action: • Implement a strict process for drawing funds beginning in FY26, including: o Written cash-management procedures compliant with 2 CFR §200.305. o Maintaining detailed reporting to support amounts drawn. o Timely program and project notifications for all drawdowns. • Establish a formal review and approval process for reimbursement requests. • Ensure advance funds are maintained in interest-bearing accounts when applicable. Timeline: • Written procedures and process implementation: FY26 • Staff training and monitoring: Ongoing Person Responsible: Jennifer Stahl, Finance Lead
The Company does not have the resources and/or staff to prepare the financial statements and notes but will continue to oversee the auditor’s services and review and approve the financial statements and notes.
The Company does not have the resources and/or staff to prepare the financial statements and notes but will continue to oversee the auditor’s services and review and approve the financial statements and notes.
Finding Reference Number: 2024-001 -Weakness in Controls over Accounting and Financial Reporting Description of Finding: At 6/30/2024 the Organization's current assets are less than its current liabilities, resulting in a deficit in net assets. Analysis found a material weakness in the Organization'...
Finding Reference Number: 2024-001 -Weakness in Controls over Accounting and Financial Reporting Description of Finding: At 6/30/2024 the Organization's current assets are less than its current liabilities, resulting in a deficit in net assets. Analysis found a material weakness in the Organization's controls over identifying and recording vendor bills that resulted in incorrectly omitting allowable costs from program grant expense reimbursement requests. Additionally, the Executive Director performed staff level program functions that were billed at their higher wage rate resulting in payroll costs in excess of allowed budget costs that were disallowed for reimbursement. Not properly identifying and requesting reimbursement for allowable program costs and incurring payroll costs in excess of allowed budgets has strained on the Organization's operating cash flows resulting in deficits and delays in satisfying the accounts payable obligations to the police agencies for which reimbursed funds have been requested. Statement of Concurrence or Nonconcurrence: The Organization agrees with the finding as presented. Corrective Action: The Organization has implemented a dual-review process for all grant expenses to ensure that eligible costs are identified and submitted as a means to reduce misidentification of expenses for allowed activities. Staff will also receive updated training on allowable expense categories to reduce misinterpretation. In monitoring payroll activities, the Organization has revised its grant payroll allocation process to ensure that duties performed under specific roles are billed at the appropriate rate. Future budgets will more clearly distinguish between roles and corresponding pay rates to prevent overages. All projects will undergo budget-to-expense reconciliation on a monthly basis to safeguard against missed claims and ensure that grant resources are maximized without exceeding allowable limits. Name of Contact Person: Janelle Lawrence, Executive Director Phone: 503-303-4954 E-mail: janelle@oregonimpact.org Projected Completion Date: June 30, 2026
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