Corrective Action Plans

Finding 374661 (2023-002)

None 2023

MI

HUD Housing Programs Internal Control / Segregation of Duties Procurement, Suspension & Debarment

Finding Number: 2023-002 Condition: The Organization failed to refund the security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and returned the security deposit to the resident on December 22, ...

Finding Number: 2023-002 Condition: The Organization failed to refund the security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and returned the security deposit to the resident on December 22, 2022, 41 days after their move out. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: December 22, 2022

View Audit 294333

Finding 374660 (2023-001)

None 2023

Presbyterian Village Holly

MI

HUD Housing Programs Procurement, Suspension & Debarment Reporting

Condition: The Organization deposited prior year surplus cash 139 days after the deadline as stated in the Real Estate Assessment Center's Summary of Financial Reporting and Auditing Guidance for HUD (FRAG Guide) under Section 2.8. Planned Corrective Action: Management acknowledges noncompliance in ...

Condition: The Organization deposited prior year surplus cash 139 days after the deadline as stated in the Real Estate Assessment Center's Summary of Financial Reporting and Auditing Guidance for HUD (FRAG Guide) under Section 2.8. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited the surplus cash amount of $10,197 into residual receipts on February 14, 2023. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: February 14, 2023

View Audit 294333

Finding 374658 (2023-002)

Significant Deficiency 2023

Hillside Apartments Phase Ii, Inc.

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Finding Number: 2023-002 Condition: There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely The Organization rece...

Finding Number: 2023-002 Condition: There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely The Organization received approval from HUD for a $35,000 loan advance to be repaid to the replacement reserve when unpaid voucher payments were received (October 31, 2022); however, the loan was not repaid until December 13, 2022. Planned Corrective Action: Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance Management also acknowledges that it did not repay the replacement reserve timely with voucher funds subsequently received, but it did repay the $35,000 advance to the replacement reserve account on December 13, 2022. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: December 13, 2022

View Audit 294332

Finding 374656 (2023-002)

Significant Deficiency 2023

Piloted Schools of Indiana, Inc.

IN

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.329

Finding 2023-002 - Reporting Transitions in operations positions over the course of the first years of ESSER distributions and reimbursements, combined with the first round of data collection resulted in discrepancies between state reports and internal records. A thorough review of past reports and ...

Finding 2023-002 - Reporting Transitions in operations positions over the course of the first years of ESSER distributions and reimbursements, combined with the first round of data collection resulted in discrepancies between state reports and internal records. A thorough review of past reports and data will be completed to identify errors by the School Principal (Jennica Adkins) and future reports will be completed in conjunction with Bookkeeping Plus (Tina Spencer) to ensure accuracy. This will be completed before the next round of ESSER reports due April 2024.

View Audit 294330

Finding 374651 (2023-004)

Significant Deficiency 2023

Seward County Community College

KS

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

2023-004 – Student Financial Assistance Cluster – Special Tests and Provisions – NSLDS Enrollment Reporting Condition During testing, it was determined that six of the 20 students tested for enrollment status changes did not have those changes properly reflected within their NSLDS records. Recommend...

2023-004 – Student Financial Assistance Cluster – Special Tests and Provisions – NSLDS Enrollment Reporting Condition During testing, it was determined that six of the 20 students tested for enrollment status changes did not have those changes properly reflected within their NSLDS records. Recommendation We recommend that the College review its control policies to ensure that reporting is completed accurately and timely. Wherever possible, any technological errors discovered should be pursued with the responsible party in order to try to determine a cause, and a solution or preventative measure should be implemented to prevent future errors from occurring. Comments on the Finding The oversite has been acknowledged by management and we will try our hardest to make sure that the process is addressed. Actions Taken Starting October 15, 2023, the Registrar will review the error reports from NSLDS in a timely manner to make sure that issues are resolved. There are quarterly training or consultations with Ellucian to verify best practices. On January 23, 2024, we received notification from NSLDS that we have been removed from “G for Degree Status” so that all awards will be recognized instead of an G Status for awards. Starting February 2024, student samples will be taken from submissions to NSLDS to review for accuracy before submissions.

View Audit 294326

Finding 374650 (2023-003)

Significant Deficiency 2023

Seward County Community College

KS

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

2023-003 – Student Financial Assistance Cluster – Special Tests and Provisions – Student Information Security Condition During testing, it was determined that the College’s written policies did not reflect one of the seven required elements. Recommendation We recommend that the College’s written pol...

2023-003 – Student Financial Assistance Cluster – Special Tests and Provisions – Student Information Security Condition During testing, it was determined that the College’s written policies did not reflect one of the seven required elements. Recommendation We recommend that the College’s written policies be updated to properly reflect all seven elements required. Comments on the Finding Management is aware of the oversite and has enacted the practice of the missing policy in FY24. They have also worked on a policy to take to the SCCC Board of Trustees for approval. Actions Taken The policy has been written, reviewed, and is planned to go to the SCCC Board of Trustees on March 4, 2024.

View Audit 294326

Finding 374649 (2023-002)

Significant Deficiency 2023

Statewide Bay Landing Ii, Inc.

RI

HUD Housing Programs

the property makes every effort to deposit reserves on a timely basis and due to cash flow constraints, has been unable too. The property will continue to whittle away at the shortfall and make every effort to deposit the required funds on a monthly basis.

View Audit 294325

Finding 374648 (2023-001)

Significant Deficiency 2023

Statewide Bay Landing Ii, Inc.

RI

HUD Housing Programs Internal Control / Segregation of Duties

We have obtained the required information

View Audit 294325

Finding 374647 (2023-002)

Significant Deficiency 2023

Statewide Bay Landing, Inc.

RI

the cash account has been fully funded.

View Audit 294324

Finding 374646 (2023-001)

Significant Deficiency 2023

Statewide Bay Landing, Inc.

RI

HUD Housing Programs Internal Control / Segregation of Duties

We have obtained the required information.

View Audit 294324

Finding 374645 (2023-004)

Significant Deficiency 2023

Statewide Bay Landing, Inc.

RI

HUD Housing Programs

management has met with the bank and made arrangements to sweep funds to other member insured banks to provide for full FDIC coverage.

View Audit 294324

Finding 374644 (2023-003)

Significant Deficiency 2023

Statewide Bay Landing, Inc.

RI

HUD Housing Programs

the property makes every effort to deposit reserves on a timely basis and due to cash flow constraints, has been unable too. The property will continue to whittle away at the shortfall and make every effort to deposit the required funds on a monthly basis.

View Audit 294324

Finding 374642 (2023-002)

Significant Deficiency 2023

Matchbook Learning Schools of Indiana, Inc.

IN

Reporting Significant Deficiency Internal Control / Segregation of Duties

FINDING 2023-002 MAINTENANCE OF EFFORT (REPEAT FINDING) SIGNIFICANT DEFICIENCY February 28, 2024 Donovan CPAs 9292 N. Meridian Street, Suite 150 Indianapolis, IN 46260 Matchbook Learning Schools of Indiana, Inc. has already or will take the following actions to Address the Form 9 finding 1. We...

FINDING 2023-002 MAINTENANCE OF EFFORT (REPEAT FINDING) SIGNIFICANT DEFICIENCY February 28, 2024 Donovan CPAs 9292 N. Meridian Street, Suite 150 Indianapolis, IN 46260 Matchbook Learning Schools of Indiana, Inc. has already or will take the following actions to Address the Form 9 finding 1. We will continue to manage the differences in timing and required reporting that exist for charter schools in the state of Indiana. As part of that, we will monitor our cash basis fund reporting on our Form 9 submission and adjust as necessary. Adjustments are typically required when we either make accrual-based receivable and payable adjustments or when we receive retroactive grant budget approvals after a Form 9 reporting deadline has already passed. We are working on improving this reconciliation process so our individual fund Form 9 cash balances will be more accurately reflected when tied to our accrual-base fund balances. 2. We are transitioning to a new business services provider in the last quarter of fiscal year 2024. We will work with them to adjust our Form 9 reporting process. Individual Responsible - Don Stewart Matchbook Learning Schools of Indiana, Inc. Management Donald Stewart, Director of Operations

View Audit 294323

Finding 374635 (2023-001)

Significant Deficiency 2023

Oakley Union Elementary School District

CA

Questioned Costs Allowable Costs / Cost Principles

It was determined at the end of the 2022-2023 school year that $26,667 of indirect costs were 2022-2023 school year, we were informed that the guidelines changed for some funding sources regarding indirect costs. We will be correcting the action as instructed in our books and will implement an annua...

It was determined at the end of the 2022-2023 school year that $26,667 of indirect costs were 2022-2023 school year, we were informed that the guidelines changed for some funding sources regarding indirect costs. We will be correcting the action as instructed in our books and will implement an annual review process for funding sources to ensure that we are able to implement all guidelines.

View Audit 294314 Questioned Costs: $1

Finding 374632 (2023-001)

Significant Deficiency 2023

Maniilaq Association

AK

Eligibility Significant Deficiency

Finding 2023-001 Eligibility – Noncompliance and Significant Deficiency in Internal Control Over Compliance Planned Corrective Actions: Registration staff is requesting beneficiary identification at the time of registration for all patients that do not have it in their EHR. Project is ongoing. Month...

Finding 2023-001 Eligibility – Noncompliance and Significant Deficiency in Internal Control Over Compliance Planned Corrective Actions: Registration staff is requesting beneficiary identification at the time of registration for all patients that do not have it in their EHR. Project is ongoing. Monthly audits of the elements of registration, including documentation of beneficiary status will be conducted to ensure continual compliance. Additionally, Maniilaq will work with our local tribes to get enrollment information to assist in verifying beneficiary status. Individual(s) Responsible for Corrective Action Plan Kandy Barlow VP of Health Services 907-442-7385 Anticipated Completion Date: March 31,2024

View Audit 294309

Finding 374628 (2023-002)

Significant Deficiency 2023

School District of Belleville

WI

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Finding #2023-002: ESSER II #84.425D COVID-19 – Education Stabilization Fund and ESSER III #84.425U COVID-19 – Education Stabilization Fund Federal Grantor: U.S. Department of Education Pass-through Award Numbers: 2022-252646-DPI-ESSERFII-163 and 2022-252646-DPI-ESSERFIII-165 Pass-throug...

Finding #2023-002: ESSER II #84.425D COVID-19 – Education Stabilization Fund and ESSER III #84.425U COVID-19 – Education Stabilization Fund Federal Grantor: U.S. Department of Education Pass-through Award Numbers: 2022-252646-DPI-ESSERFII-163 and 2022-252646-DPI-ESSERFIII-165 Pass-through Entity: Wisconsin Department of Public Instruction Condition: There were five Education Stabilization Fund construction projects performed by contractors/subcontractors. None of the contracts included prevailing wage language clauses and certified payrolls were not obtained by the District during the fiscal year expended. Not all contractors/subcontractors were able to provide certified payrolls when requested as part of the compliance testing. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements 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 District weekly payrolls and a statement of compliance (certified payrolls). Cause: There was turnover in the business office and the contracts were secured and approved prior to the current business manager. The District was not aware of the applicable requirements related to these projects. Effect: A reimbursement request was made for expenditures that did not comply with wage rate requirements. Questioned Costs: $78,300 (Amount for which certified payrolls were not subsequently provided) Recommendation: Establish procedures and controls to comply with wage rate requirements related to the Education Stabilization Fund. Obtain verification from contractors that prevailing wage rates were paid on the projects submitted for costs reimbursed by the grant. Response: The District became aware of the prevailing wage rate requirements after finishing the projects. Before bidding future construction projects more than $2,000, that may be funded with federal grant dollars, the request for bid and contract will include a prevailing wage rate clause. Certified payrolls will be received from contractors or subcontractors. Additionally, the district has obtained payroll data from all each contractor to provide support for wage rates paid if necessary. Contact Person: Erik Farrar Anticipated Completion: March 15, 2024

View Audit 294304 Questioned Costs: $1

Finding 374626 (2023-001)

Significant Deficiency 2023

Decorah Community School District

IA

Internal Control / Segregation of Duties

Management is cognizant of this limitation and will implement additional procedures where possible.

View Audit 294303

Finding 374622 (2023-001)

Significant Deficiency 2023

Greater Sioux Community Health Center, Inc. Dba Promise Comm Hlth Cntr

IA

Procurement, Suspension & Debarment

Promise Community Health Center established the threshold of $25,000 for small purchase procedures rather than the $10,000 noted by US DHHS. Promise also reviewed its procurement samples tested and noted that many of the samples were individually below the threshold of $10,000 and misunderstood this...

Promise Community Health Center established the threshold of $25,000 for small purchase procedures rather than the $10,000 noted by US DHHS. Promise also reviewed its procurement samples tested and noted that many of the samples were individually below the threshold of $10,000 and misunderstood this to be a full purchase order of $10,000 to require a secondary quote. Promise will revise its procurement policy to reflect the appropriate small purchase threshold and the policy will continue to be reviewed bi‐annually and approved by the board. Kara Acevedo, Chief Financial Officer, is responsible for the oversight of the corrective action. Completion of the corrective action plan is expected by March 31, 2024.

View Audit 294297

Finding 374619 (2023-002)

Significant Deficiency 2023

Perquimans County

NC

Eligibility

Perquimans County Department of Social Services unit will continue to 2nd party cases monthly, randomly review workers calculations and procedures of the countable resources. IMS will implement a training with question and answer session to demonstrate the proper calculations to be used.

View Audit 294291

Finding 374618 (2023-001)

Significant Deficiency 2023

Perquimans County

NC

Eligibility Internal Control / Segregation of Duties

Perquimans County Department of Social Services unit will continue to 2nd party cases monthly, randomly review workers online data and continue to train on the important of pulling current and accurate information from the online data system. IMS will implement a Power point presentation to illustra...

Perquimans County Department of Social Services unit will continue to 2nd party cases monthly, randomly review workers online data and continue to train on the important of pulling current and accurate information from the online data system. IMS will implement a Power point presentation to illustrate the importance of the information the County utilizes from the online and work number systems.

View Audit 294291

Finding 374610 (2023-001)

Significant Deficiency 2023

Concordia University, Nebraska

NE

Questioned Costs Student Financial Aid Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University evaluate its procedures and a policy around how level of education is determined and verified when packaging and awarding students. Explanation of disagreement with audit finding: There ...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University evaluate its procedures and a policy around how level of education is determined and verified when packaging and awarding students. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Student Financial Aid Office will add an additional step to the policy for verifying and reviewing student loan levels. In addition to reviewing loan level reports before the beginning of the academic year, we will also review loan levels after the census date of the first semester of the academic year. This added step will catch any changes that were made to student packaging up to the census date. Name(s) of the contact person(s) responsible for corrective action: David L Kumm, Executive VP CFO/COO Planned completion date for corrective action plan: 7/1/2023

View Audit 294279 Questioned Costs: $1

Finding 374608 (2023-001)

Significant Deficiency 2023

Georgetown University

DC

Questioned Costs Cash Management

Finding 2023-001: Cash Management: Management agrees with the finding and recommendation. The University continues to evaluate monthly expenses to match actual expenses with cash draws. The University will also evaluate if an increase in the frequency of draws at smaller amounts is necessary in orde...

Finding 2023-001: Cash Management: Management agrees with the finding and recommendation. The University continues to evaluate monthly expenses to match actual expenses with cash draws. The University will also evaluate if an increase in the frequency of draws at smaller amounts is necessary in order to ensure funding drawn is expended within the thirty-day window. Chao Wang, Senior Director, Sponsored Projects Financial Operations, will perform on‐going monitoring of draws under this program to ensure funds are expended timely in accordance with the grant requirements throughout the year, and to identify the areas where additional training is required. The estimated completion date is June 30, 2024.

View Audit 294278 Questioned Costs: $1

Finding 374600 (2023-003)

Material Weakness 2023

Spencer Community School District

IA

Internal Control / Segregation of Duties

SEE RESPONSE AND CORRECTIVE ACTION PLAN AT 2023-001

View Audit 294275

Finding 374593 (2023-008)

Material Weakness 2023

City of Olean, New York

NY

Reporting

Auditors’ Recommendation: As part of the bank reconciliation preparation and review, the City’s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated and corrected. ...

Auditors’ Recommendation: As part of the bank reconciliation preparation and review, the City’s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated and corrected. City’s Response: The City Auditor, Lens Martial, understands the importance of the bank reconciliation process and will investigate and correct any reconciling differences as they occur. Differences existed related to the timing of payroll transfers made from the general checking account to the payroll account. The City Auditor will put a process in place to verify that these transactions are properly accounted for on the bank reconciliations during the year ending May 31, 2024.

View Audit 294247

Finding 374586 (2023-007)

Material Weakness 2023

City of Olean, New York

NY

Reporting Internal Control / Segregation of Duties

Auditor’s Recommendations: Budgets – A written policy should be established and communicated on preparing a budget versus actual report for all capital projects exceeding a certain dollar level. Any discrepancies should be explained in writing so that necessary corrective action, if any, can be ...

Auditor’s Recommendations: Budgets – A written policy should be established and communicated on preparing a budget versus actual report for all capital projects exceeding a certain dollar level. Any discrepancies should be explained in writing so that necessary corrective action, if any, can be considered. These analyses should be provided to City management and the Common Council on a monthly basis. City’s Response: Budgets - The City concurs with the auditor’s recommendations that a written policy should be established and communicated in preparing budgeted versus actual reporting for capital project budgets in excess of a yet to be determined monetary threshold. The City intends to develop a policy on budgets during 2024. Once drafted, the Audit and Compliance Committee intends to review policy, prior to its acceptance by the Common Council.

View Audit 294247

Corrective Action Plans

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