Corrective Action Plans

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Federal Program Title: Higher Education Institutional Aid Assistance Listing Number: 84.031 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Recommendation: We recommend that UEC strengthen its reporting procedures to ensure required performance reports a...
Federal Program Title: Higher Education Institutional Aid Assistance Listing Number: 84.031 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Recommendation: We recommend that UEC strengthen its reporting procedures to ensure required performance reports are reviewed and approved prior to submission and that documentation is retained to support evidence of management review and report submission in accordance with Federal award requirements. Views of Responsible Officials: There is no disagreement with the audit finding. Action Taken in Response to Finding: Sponsored Programs, in coordination with the Office of Academic Research, will implement formal procedures requiring documented review and approval of all performance and annual reports prior to submission. Standardized processes, including approval documentation and retention of supporting records, will be established in accordance with Federal requirements. Roles and responsibilities will be defined, and compliance will be monitored. Targeted training will be provided to ensure staff understand reporting requirements and the updated procedures. Contact(s) Responsible for Corrective Action: Director of Sponsored Programs Planned Completion Date for Corrective Action: June 30, 2026
Federal Program Title: Higher Education Institutional Aid Assistance Listing Number: 84.031 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Recommendation: We recommend that the UEC strengthen its procurement procedures to ensure suspension and debarment...
Federal Program Title: Higher Education Institutional Aid Assistance Listing Number: 84.031 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Recommendation: We recommend that the UEC strengthen its procurement procedures to ensure suspension and debarment verification is consistently performed and documented prior to entering into covered transactions funded with Federal awards. Views of Responsible Officials: There is no disagreement with the audit finding. Action Taken in Response to Finding: University Enterprises Corporation (UEC) maintains an established process requiring suspension and debarment verification prior to contract execution. While procurement activities are coordinated in conjunction with CSUSB Procurement, UEC is responsible for ensuring that required verification procedures are completed and appropriately documented for all federally funded transactions. The instance identified represents a lapse in documentation, not a lack of control. UEC has reinforced expectations to ensure verification is consistently documented within the official project file and has strengthened pre-award review procedures to confirm compliance prior to execution. UEC will continue to monitor adherence to ensure consistent application of established controls. Contact(s) Responsible for Corrective Action: Director of Sponsored Programs Planned Completion Date for Corrective Action: June 30, 2026
Condition: During audit testing of the Sliding Fee Discount Program for the fiscal year ended June 30, 2025, NeoMed Center, Inc. identified deficiencies in the documentation, retention, and supervisory review of patient eligibility determinations. Specifically, patient financial information was upda...
Condition: During audit testing of the Sliding Fee Discount Program for the fiscal year ended June 30, 2025, NeoMed Center, Inc. identified deficiencies in the documentation, retention, and supervisory review of patient eligibility determinations. Specifically, patient financial information was updated in a manner that overwrote prior eligibility evaluations, resulting in the loss of historical eligibility records. In addition, patient files were not consistently closed or retained in accordance with established policies and federal program requirements. These conditions reflected weaknesses in internal controls over eligibility documentation and supervisory oversight, which increased the risk of inconsistent application of the sliding fee scale, noncompliance with HRSA Health Center Program and Ryan White Part C requirements, inaccurate patient billing adjustments, and potential misstatement of patient service revenue. Planned Corrective Action: Management implemented corrective actions to strengthen internal controls over the Sliding Fee Discount Program and ensure sustained compliance with applicable federal requirements. Policies and procedures governing eligibility determinations and sliding fee discount applications were revised to require preservation of historical eligibility records, standardized documentation, and proper file‑closure practices. Clear supervisory review responsibilities were established to ensure eligibility determinations and fee assessments are reviewed for accuracy, completeness, and compliance. Targeted training was provided to staff responsible for patient registration, eligibility determinations, and fee assessments to ensure consistent application of the sliding fee scale and adherence to federal program requirements. In addition, management implemented periodic internal reviews of patient files to verify compliance with documentation, retention, and eligibility reassessment requirements, and to promptly identify and remediate any deficiencies. These corrective actions were designed to enhance internal control effectiveness, support accurate financial reporting, and prevent recurrence of the identified condition. Key internal controls include: • Revised and strengthened Sliding Fee Discount Program policies and procedures. • Implemented controls to preserve historical eligibility determinations and documentation. • Established standardized eligibility documentation and file‑closure processes. • Defined supervisory review responsibilities and escalation procedures. • Provided targeted training to eligibility and registration staff. • Implemented periodic internal reviews of patient files to ensure compliance. Monitoring: Management will conduct periodic supervisory reviews of patient eligibility determinations and sliding fee discount applications beginning April 1st, 2026, to ensure compliance with established policies and federal program requirements. Monitoring will include sample testing of patient files to verify proper documentation, preservation of historical eligibility records, and timely reassessments. Results of monitoring activities will be documented and reviewed by management, and corrective actions will be implemented as needed to address any deficiencies identified. Responsible Official: Jose A. Guzman Machuca Time frame: This condition was resolved in March 2026 upon the implementation of revised policies, enhanced documentation controls, staff training, and supervisory review procedures
Condition: For the fiscal year ended June 30, 2025, NeoMed Center, Inc. earned interest on federal funds more than the $500 annual amount permitted under 2 CFR §200.305(b)(12). The excess interest was not remitted timely to the U.S. Department of Health and Human Services (HHS) through the Payment M...
Condition: For the fiscal year ended June 30, 2025, NeoMed Center, Inc. earned interest on federal funds more than the $500 annual amount permitted under 2 CFR §200.305(b)(12). The excess interest was not remitted timely to the U.S. Department of Health and Human Services (HHS) through the Payment Management System (PMS). This condition resulted from the lack of a formalized control process to periodically monitor interest earned on federal cash balances and to identify when the allowable annual retention threshold had been exceeded. Planned Corrective Action: Management implemented formal written policies and procedures governing the monitoring of interest earned on federal funds in accordance with Uniform Guidance requirements. These procedures require periodic calculation, documentation, and supervisory review of interest earned on federal cash balances to ensure compliance with the $500 annual allowable retention limit. Any interest earned more than the allowable threshold is identified promptly and remitted timely to HHS through the Payment Management System (PMS). Targeted training was provided to finance personnel responsible for cash management activities to ensure proper understanding and consistent application of federal interest requirements. Key internal controls include: • Implemented formal written policies and procedures for monitoring interest earned on federal funds. • Established monthly review of interest balances. • Implemented timely remittance procedures for excess interest through PMS. • Provided targeted training to finance staff on federal cash management and interest requirements. Monitoring: Management will monitor interest earned on federal funds monthly beginning April 1st, 2026, to ensure compliance with the $500 annual allowable retention threshold. Interest calculations will be reviewed and documented, and any excess interest identified will be remitted timely to the Payment Management System (PMS). Monitoring activities will be evidenced through reconciliations and management review documentation, which will be maintained for audit purposes. Responsible Official: Jose A. Guzman Machuca Time frame: This condition was resolved in March 17th ,2026 upon the implementation of formal monitoring procedures and remittance controls.
Condition: During the fiscal year ended June 30, 2025, NeoMed Center, Inc. used the advance payment method through the HHS Payment Management System (PMS) to obtain federal funds. In certain instances, drawdowns were requested based on aggregated projections and liquidity needs before specific eligi...
Condition: During the fiscal year ended June 30, 2025, NeoMed Center, Inc. used the advance payment method through the HHS Payment Management System (PMS) to obtain federal funds. In certain instances, drawdowns were requested based on aggregated projections and liquidity needs before specific eligible expenses were fully identified and ready for immediate disbursement. Although the funds were later applied to eligible expenses incurred within the authorized award periods, the absence of a documented, expense-level linkage at the time of each drawdown created a temporary timing difference between cash receipt and expense recognition. Accordingly, funds that did not meet revenue recognition criteria at the end were recorded as Unearned Revenue. Consistent with U.S. GAAP and federal grant revenue recognition policies, the Unearned Revenue balance of approximately $1.8 million as of June 30, 2025, represents federal funds received in advance, for which revenue recognition was contingent on incurring future eligible expenses. This balance was analyzed, reconciled, and recognized as eligible expenses were incurred, as supported by reconciliations provided to the external auditors, and was appropriately disclosed in the notes to the financial statements for the years ended June 30, 2025, and 2024. Planned Corrective Action: To prevent recurrence, NeoMed Center, Inc. adopted and implemented “Federal Fund Drawdown via HHS Payment Management System (PMS)” (Policy No. NMCIP 46), approved by the Board of Directors and effective March 2026. The policy requires drawdowns to be based solely on immediate cash needs, supported by a documented short-term cash forecast, and prohibits requesting funds for expenses not yet incurred or not ready for immediate disbursement. Key internal controls include: • Mandatory preparation of a cash forecast by award prior to each drawdown. • Independent review and approval by the Finance Department prior to submission of drawdown requests in PMS. • Monthly reconciliations between PMS, bank accounts, and the general ledger. • Monitoring of the time elapsed between the receipt of funds and their disbursement, with a maximum internal standard of three (3) business days. • Documentation and formal approval of any exceptions. • Adoption of an internal benchmark of 8.33% per month (1/12 of the annual award) as a control parameter. • Clear definition of segregation of duties; and • Periodic reporting to Senior Management and the CEO. Management concludes that this matter resulted from cash-management timing and not from misuse of federal funds. Monitoring: Management will perform monthly monitoring of federal fund drawdowns beginning April 1st ,2026 to ensure they are limited to immediate cash needs and supported by documented short‑term cash forecasts. Drawdowns will be reconciled monthly to the general ledger, bank statements, and allowable expenditures incurred within the approved period of performance. Any timing variances or exceptions will be reviewed and documented. Monitoring results will be reviewed by senior management to ensure continued compliance with Uniform Guidance requirements. Responsible Official: Jose A. Guzman Machuca Time frame: This condition was identified on February 20, 2026, and is expected to be resolved by May 2026, upon the implementation of formal monitoring procedures and enhanced remittance controls.
Corrective Action Plan Year-end June 30, 2025
Corrective Action Plan Year-end June 30, 2025
The following finding was noted during the audit of Federal programs in accordance with 2 CFR 200.
The following finding was noted during the audit of Federal programs in accordance with 2 CFR 200.
Management of Syracuse University agrees with the finding and proposes the following Corrective
Management of Syracuse University agrees with the finding and proposes the following Corrective
Action Plan.
Action Plan.
Finding Number 2025-001: Enrollment Reporting Corrective Action Plan:
Finding Number 2025-001: Enrollment Reporting Corrective Action Plan:
The finding identified in 2025 is directly tied to the remediation period addressed in last year’s
The finding identified in 2025 is directly tied to the remediation period addressed in last year’s
plan and does not represent a new or systemic issue. The mitigations already implemented, expanding
plan and does not represent a new or systemic issue. The mitigations already implemented, expanding
staffing capacity, structured inter-office oversight, and ongoing system improvements, are designed
staffing capacity, structured inter-office oversight, and ongoing system improvements, are designed
to prevent reoccurrence and ensure that records of this nature are identified and processed in a
to prevent reoccurrence and ensure that records of this nature are identified and processed in a
timely manner going forward.
timely manner going forward.
To ensure that is the case:
To ensure that is the case:
1. Immediate Mitigations (with 90 Days):
1. Immediate Mitigations (with 90 Days):
a. The quarterly check-in meetings between the Office of the Registrar and the Office of Financial
a. The quarterly check-in meetings between the Office of the Registrar and the Office of Financial
Aid, established as part of last year’s remediation, are now in place and ongoing. These meetings
Aid, established as part of last year’s remediation, are now in place and ongoing. These meetings
provide a regular, structured mechanism for monitoring enrollment reporting compliance and
provide a regular, structured mechanism for monitoring enrollment reporting compliance and
surfacing any new concerns promptly.
surfacing any new concerns promptly.
b. The functional business analyst position has been filled, and the Office of the Registrar will
b. The functional business analyst position has been filled, and the Office of the Registrar will
continue expedite the onboarding and training of this staff member. This role is critical to the
continue expedite the onboarding and training of this staff member. This role is critical to the
long-term sustainability of timely and accurate enrollment reporting.
long-term sustainability of timely and accurate enrollment reporting.
c. The Associate Director of Financial Aid Compliance will select a monthly sample population of 30
c. The Associate Director of Financial Aid Compliance will select a monthly sample population of 30
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