Corrective Action Plans

Finding 420505 (2022-001)

Significant Deficiency 2022

CO

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Recommendation: We recommend the College evaluate its procedures and policies around reporting Direct Loan disbursements to COD to ensure that student information is reported accurately and timely.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action ...

Recommendation: We recommend the College evaluate its procedures and policies around reporting Direct Loan disbursements to COD to ensure that student information is reported accurately and timely.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action in Response to Finding: New selection sets were implemented in database to ensure students do not disburse until all documents are received and that they disburse to COD and to the Business Office at the same time.Name of the contact person responsible for corrective action: Shannon Amundson, Director of Financial Aid (719) 389-6651.Planned completion date for corrective action plan: Completed September 1, 2023

View Audit 312263

Finding 420504 (2022-002)

Significant Deficiency 2022

The Colorado College and Subsidiaries

CO

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Recommendation: We recommend the College evaluate its procedures and policies around reporting to NSLDS, including those that are unique in nature, to ensure that student information is reported accurately and timely.Explanation of disagreement with audit finding: There is no disagreement with the a...

Recommendation: We recommend the College evaluate its procedures and policies around reporting to NSLDS, including those that are unique in nature, to ensure that student information is reported accurately and timely.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action in Response to Finding: College personnel met with the National Student Loan Clearinghouse to determine what steps were needed to fix the issues we have. Adjusting the dates of submission was determined to be the best course of action to ensure that all rejects could be corrected at Clearinghouse prior to the NSLDS submission monthly.Name of the contact person responsible for corrective action: Shannon Amundson, Director of Financial Aid (719) 389-6651.Planned completion date for corrective action plan: Implemented September 1, 2022.

View Audit 312263

Finding 420501 (2022-004)

Significant Deficiency 2022

Lutheran Community Services Northwest

WA

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Finding 2022-004Significant deficiency in internal controls over compliance and instance of noncompliance related to matchingrequirements.Contact Person(s):Nicholas Lee, Chief Financial OfficerCorrective action planned:Vacated staff position filled and additional support staff retraining on matching...

Finding 2022-004Significant deficiency in internal controls over compliance and instance of noncompliance related to matchingrequirements.Contact Person(s):Nicholas Lee, Chief Financial OfficerCorrective action planned:Vacated staff position filled and additional support staff retraining on matching funds claimed to ensure the source is limitedto the project is underway.Anticipated completion date:June 30, 2023

View Audit 312261 Questioned Costs: $1

Finding 420482 (2022-006)

Significant Deficiency 2022

Lutheran Community Services Northwest

WA

Questioned Costs Allowable Costs / Cost Principles Period of Performance

Finding 2022-006Significant deficiency in compliance and internal controls over compliance and instance of noncompliance related to periodof performance.Contact Person(s):Nicholas Lee, Chief Financial OfficerCorrective action planned:Vacated billing staff position filled and additional support staff...

Finding 2022-006Significant deficiency in compliance and internal controls over compliance and instance of noncompliance related to periodof performance.Contact Person(s):Nicholas Lee, Chief Financial OfficerCorrective action planned:Vacated billing staff position filled and additional support staff retraining underway to ensure incurred costs documentationis available for processing during the period of performance and subsequent cost reimbursements bills are submitted tofederal awards within appropriate period of performance timeframe.Anticipated completion date:June 30, 2023

View Audit 312261 Questioned Costs: $1

Finding 420471 (2022-003)

Material Weakness 2022

Lutheran Community Services Northwest

WA

Allowable Costs / Cost Principles § 200.403 § 200.405 § 200.430

Finding 2022-003Material weakness in internal controls over compliance for allowable activities and costs and material non-compliance inthe Coronavirus State and Local Fiscal Recovery Fund program.Contact Person(s):Nicholas Lee, Chief Financial OfficerCorrective action planned:The Organization will ...

Finding 2022-003Material weakness in internal controls over compliance for allowable activities and costs and material non-compliance inthe Coronavirus State and Local Fiscal Recovery Fund program.Contact Person(s):Nicholas Lee, Chief Financial OfficerCorrective action planned:The Organization will provide additional training to employees responsible for incurring costs in accordance with 2 CFR200.403. Additional resources have been assigned to review and ensure documentation and policies are retained to supportthe distribution of charges between projects. Anticipated completion date:June 30, 2023

View Audit 312261

Finding 420454 (2022-005)

Significant Deficiency 2022

Lutheran Community Services Northwest

WA

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding 2022-005Significant deficiency in internal controls over compliance for reporting.Contact Person(s):Nicholas Lee, Chief Financial OfficerCorrective action planned:Reports submitted after March 31, 2022 to the Provider Relief Fund portal are reviewed by a finance employee other thanthe creato...

Finding 2022-005Significant deficiency in internal controls over compliance for reporting.Contact Person(s):Nicholas Lee, Chief Financial OfficerCorrective action planned:Reports submitted after March 31, 2022 to the Provider Relief Fund portal are reviewed by a finance employee other thanthe creator. The March 31, 2023 reporting period was submitted with corrected prior quarter revenues.Anticipated completion date:March 31, 2023

View Audit 312261

Finding 420450 (2022-002)

Significant Deficiency 2022

Lutheran Community Services Northwest

WA

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.512

Finding 2022-002Significant deficiency in internal controls over compliance for reporting related to the submission of Single Audit reportingpackage.Contact Person(s):Nicholas Lee, Chief Financial OfficerCorrective action planned:The agency again experienced turnover in staffing and unplanned absenc...

Finding 2022-002Significant deficiency in internal controls over compliance for reporting related to the submission of Single Audit reportingpackage.Contact Person(s):Nicholas Lee, Chief Financial OfficerCorrective action planned:The agency again experienced turnover in staffing and unplanned absences that constrained resources for the consolidatedSingle Audit. The system of controls is in place, which relies on appropriate staffing and training to ensure timelycompletion and submission of the Single Audit reporting package. Staffing positions have been filled and stabilized to satisfythe compliance requirements.Anticipated completion date:May 31, 2023

View Audit 312261

Finding 420276 (2022-003)

Material Weakness 2022

Community Youth Services

WA

Questioned Costs Subrecipient Monitoring Eligibility

Finding: 2021-003CFDA: 21.023 Department of the Treasury, Agency Rental AssistancePass-Through Entity: WA Department of Commerce 2021-ComTRAP-CYS-RAAgency: Community Youth ServicesName of contact person and title: Derek Harris, CEOAnticipated completion date: completed on 09/30/2022Agency?s response...

Finding: 2021-003CFDA: 21.023 Department of the Treasury, Agency Rental AssistancePass-Through Entity: WA Department of Commerce 2021-ComTRAP-CYS-RAAgency: Community Youth ServicesName of contact person and title: Derek Harris, CEOAnticipated completion date: completed on 09/30/2022Agency?s response: ConcurThe organization agrees with this finding and implemented the following:We developed program guidelines in addition to the guidelines provided by the Pass-Through Entity in order to ensure internal controls are in place to mitigate fraud and/or misuse of rental assistance funds.The program personnel implemented a file checklist starting October 1, 2022, to ensure all compliance components included in the file documentation meet the criteria required for the program. The checklist and forms are reviewed prior to payment. When digital signatures cannot be obtained, verbal verification of agreement by the applicant will be documented by the program staff to include date, time, method of communication.A supervisor (Program Director, Deputy Director, or CEO) reviews the files to ensure compliance with the program guidelines, ensure third party evidence exists and that all applicable documentation is in the file to support the rental assistance request.The files will also be reviewed by the Finance Coordinator prior to submitting the payment request to the Accounting Associate to ensure eligibility is adequately documented and that third party evidence exists before funds are released to the landlord.Sincerely,Derek R. HarrisChief Executive OfficerCommunity Youth Services

View Audit 312253 Questioned Costs: $1

Finding 420261 (2022-001)

Significant Deficiency 2022

Community Youth Services

WA

Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking § 200.303

10/02/2023The following Corrective Action Plan addresses the findings related to Community Youth Services 2022 Audit.Corrective Action Plan:Finding: 2022-001 (reference 2021-003)CFDA: 21.023 Department of the Treasury, Agency Rental AssistanceAgency: Community Youth ServicesName of contact person an...

10/02/2023The following Corrective Action Plan addresses the findings related to Community Youth Services 2022 Audit.Corrective Action Plan:Finding: 2022-001 (reference 2021-003)CFDA: 21.023 Department of the Treasury, Agency Rental AssistanceAgency: Community Youth ServicesName of contact person and title: Derek Harris, CEOAnticipated completion date: completed on 09/30/2022Agency?s response: ConcurThe organization agrees with this finding and has implemented the following: reference response 2021003Finding: 2022-002 related to financial statementsCFDA: N/AAgency: Community Youth ServicesName of contact person and title: Derek Harris, CEOAnticipated completion date: Implemented 9/1/2022Agency?s response: ConcurThe organization agrees with this finding and implemented the following:Bank transactions are reviewed prior to receiving the statement for potential fraud. The Accounting Associate responsible for accounts payable reviews check exceptions and uploads the check data from our financial system to the bank system at least weekly, if not daily. This prevents checks and withdrawals being presented and posted that differ from our financial records.Month end bank reconciliations will be completed within 30 days of receipt of the statement, according to Community Youth Services policy and procedure. An individual in a supervisory position will review the month-end reconciliations and bank statements upon completion. The supervisor reviewing the month-end reconciliation will document the review with their initials (digitally or by hand and scanned). All reconciliations will be stored on the organizations Sharepoint server.

View Audit 312253

Finding 419543 (2022-003)

Material Weakness 2022

Marietta School District I-16

OK

Equipment & Real Property Management Procurement, Suspension & Debarment § 200.313

2022-003 Federal Agency: U.S. Department of EducationPass Thru Entity: Oklahoma State Department of EducationCOVID-19 Education Stabilization Fund-Elementary & Secondary School Emergency Relief (ESSER II & American Rescue Plan (ARP) Elementary & Secondary School Emergency Relief (ESSER III) FundAss...

2022-003 Federal Agency: U.S. Department of EducationPass Thru Entity: Oklahoma State Department of EducationCOVID-19 Education Stabilization Fund-Elementary & Secondary School Emergency Relief (ESSER II & American Rescue Plan (ARP) Elementary & Secondary School Emergency Relief (ESSER III) FundAssistance Listing: COVID-19 84.425D & 84.425U (OCAS Projects 793 & 795)Recommendation: The Auditor recommended that all property purchased with federal funds be tracked as required by federal regulations. The Auditor also recommended that controls be implemented to properly maintain records for property obtained with federal funds.Action Taken: All federal inventories have been reviewed and updated as necessary with with additional information to bring the district into compliance. An additional control has been added at the end of the fiscal year to ensure all federal purchases have been identified and recorded on inventories.Anticipated Completion Date: October 6, 2022Responsible Official: Brandi Naylor

View Audit 312239

Finding 419462 (2022-003)

Significant Deficiency 2022

Hagerstown Community College

MD

Reporting Subrecipient Monitoring Significant Deficiency § 200.328

2022-003 Education Stabilization Fund ? Assistance Listing No. 84.425FCondition: The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Recommendation: We recommend the College review current procedures to ensure documentati...

2022-003 Education Stabilization Fund ? Assistance Listing No. 84.425FCondition: The College was unable to provide supporting documentation that agreed to the quarterly and annual reports submitted for the grant.Recommendation: We recommend the College review current procedures to ensure documentation is maintained to support the amounts submitted on quarterly and annual reports.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action taken in response to finding: Management has reviewed their current procedures and has included additional controls to ensure the supporting documents are maintain with a copy of the submitted quarterly and annual reports.Name(s) of the contact person(s) responsible for corrective action: Dr. Heike Soeffker-Culicerto, Vice President of Administration and Finance, 240-500-2235Planned completion date for corrective action plan: March 31, 2023

View Audit 312232

Finding 419456 (2022-002)

Significant Deficiency 2022

Hagerstown Community College

MD

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

2022-002 Education Stabilization Fund ? Assistance Listing No. 84.425FCondition: The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Recommendation: We recommend that the College review current procedures to ensure all grant regulations...

2022-002 Education Stabilization Fund ? Assistance Listing No. 84.425FCondition: The College used HEERF grant funds to pay 3 executives a special payment for working in person through the pandemic.Recommendation: We recommend that the College review current procedures to ensure all grant regulations are being followed prior to payments.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action taken in response to finding: In fiscal year 2023, the college will repurpose the $23,016 to other allowable costs under the grant.Name(s) of the contact person(s) responsible for corrective action: Dr. Heike Soeffker-Culicerto, Vice President of Administration and Finance, 240-500-2235Planned completion date for corrective action plan: March 31, 2023

View Audit 312232 Questioned Costs: $1

Finding 419340 (2022-006)

Significant Deficiency 2022

Quitman County School District

MS

Allowable Costs / Cost Principles

2022-006 Payroll testing and internal controlsA. Name of contact person responsible for corrective action:Name: Kenyatta McClainTitle: Business ManagerB. Corrective action planned:The district will implement internal controls to ensure all employees areproperly board approved, including all federal ...

2022-006 Payroll testing and internal controlsA. Name of contact person responsible for corrective action:Name: Kenyatta McClainTitle: Business ManagerB. Corrective action planned:The district will implement internal controls to ensure all employees areproperly board approved, including all federal supplemental payments,and ensure employee payments are verified according to the boardapproved amounts.C. Anticipated completion date:June 30, 2023

View Audit 312223

Finding 419335 (2022-005)

Significant Deficiency 2022

Quitman County School District

MS

Allowable Costs / Cost Principles Procurement, Suspension & Debarment School Nutrition Programs

2022-005 Accounts payable testing and internal controlsA. Name of contact person responsible for corrective action:Name: Kenyatta McClainTitle: Business ManagerB. Corrective action planned:The District will implement policies and procedures to establish an internalcontrol system that will require ac...

2022-005 Accounts payable testing and internal controlsA. Name of contact person responsible for corrective action:Name: Kenyatta McClainTitle: Business ManagerB. Corrective action planned:The District will implement policies and procedures to establish an internalcontrol system that will require accountability with regard to accountspayable and purchasing. That will also ensure proper safeguarding ofassets and accurate accounting records. C. Anticipated completion date:June 30, 2023

View Audit 312223

Finding 419333 (2022-003)

None 2022

Urban League of Metropolitan Seattle

WA

Cash Management Matching / Level of Effort / Earmarking § 200.305

ULMS Corrective Action Plan for FY 21-22 Audit FindingsULMS faced significant challenges with the departure of its longtime CFO two months post fiscal year 2021. In addition, the third-party management company who had been responsible for the Partnership accounting, ceased the relationship abruptly...

ULMS Corrective Action Plan for FY 21-22 Audit FindingsULMS faced significant challenges with the departure of its longtime CFO two months post fiscal year 2021. In addition, the third-party management company who had been responsible for the Partnership accounting, ceased the relationship abruptly without opportunity to smoothly transition the responsibility in-house to ULMS. Our external auditor does not prepare a Management Letter typically used to communicate with the Board of Directors and Governance issues that may not elevate to a finding. As such, significant findings are reflected in Section III ? Federal Award Findings and Questioned Costs.FY 2021 was the organization?s first single audit reporting requirement. ULMS engaged a third-party CPA to review past audit and current documents needed to commence the FY 2022 audit. However, due to an emergency there was limited independent review of documents prior to being submitted to the auditor due to time constraints. ULMS continues to strengthen its accounting team and has hired a new Controller in July 2023. The new Controller is a licensed CPA with over 30 years accounting experience and over 10 years? experience as an independent auditor for a range of organizations including non-profits. The Controller will collaborate with the CFO to ensure there is accuracy in reporting, especially for major federal programs. Finding #: 2022-003Contact Person: Mansour Camara? During the FY 2021 audit, the auditor recommended that ULMS formalize written federal payment procedures in compliance with required standards. ULMS developed procedures for advance federal payment which was sent to the auditor for feedback. There was no feedback proposing ULMS update its advance federal payment procedure until the issuance of this finding. The finding states a lack of written policy that complies with the federal payment standard per CFR 200.305. However, the recommendation instructs ULMS to formalize written procedures. Such procedures were in place during FY 2022.Actions to be taken: Notwithstanding the inconsistency between the finding and the recommendation provided by the auditor, ULMS prepared written procedures consistent with CFR 200.305 and recorded transactions consistent with that procedure for FY 2022. ULMS will update its accounting policy and procedures manual to create a written policy in addition to the procedures that have already been in place consistent with CFR 200.305.

View Audit 312222

Finding 419329 (2022-001)

Material Weakness 2022

Urban League of Metropolitan Seattle

WA

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

ULMS Corrective Action Plan for FY 21-22 Audit FindingsULMS faced significant challenges with the departure of its longtime CFO two months post fiscal year 2021. In addition, the third-party management company who had been responsible for the Partnership accounting, ceased the relationship abruptly...

ULMS Corrective Action Plan for FY 21-22 Audit FindingsULMS faced significant challenges with the departure of its longtime CFO two months post fiscal year 2021. In addition, the third-party management company who had been responsible for the Partnership accounting, ceased the relationship abruptly without opportunity to smoothly transition the responsibility in-house to ULMS. Our external auditor does not prepare a Management Letter typically used to communicate with the Board of Directors and Governance issues that may not elevate to a finding. As such, significant findings are reflected in Section III ? Federal Award Findings and Questioned Costs.FY 2021 was the organization?s first single audit reporting requirement. ULMS engaged a third-party CPA to review past audit and current documents needed to commence the FY 2022 audit. However, due to an emergency there was limited independent review of documents prior to being submitted to the auditor due to time constraints. ULMS continues to strengthen its accounting team and has hired a new Controller in July 2023. The new Controller is a licensed CPA with over 30 years accounting experience and over 10 years? experience as an independent auditor for a range of organizations including non-profits. The Controller will collaborate with the CFO to ensure there is accuracy in reporting, especially for major federal programs. Finding #: 2022-001Contact Person: Mansour Camara? It is important to note that this error had no impact on the Urban League Village at Coleman School LP?s (?Partnership?) standalone financials or their audit, nor does it affect ULMS?s standalone financials. The error only affects the consolidating financials for the entities, mainly because ULMS and ULV at Colman School LP have different fiscal year periods. The total impact of the additional 6 months of operating activities recorded within the consolidating financials for FY 2022 was less than 1% of operating activities. The error was corrected and not reflected in the audited financial statements for FY 2022.The interim financial statements provided to the Board of Directors during FY 2022 for decision making did not include consolidated financial statements. Interim financial statements provided to the Board only included standalone financial statements. Consequently, there were no inaccurate financial statements provided to the Board for decision making.Actions to be taken: The error in preparing consolidated financials was corrected and not reflected in the audited financial statements for FY 2022. Management will perform quarterly analytics of financial data for the partnership and close its books in alignment with the consolidated financials.Finding #: 2022-001Contact Person: Mansour Camara? The $704,017 was recorded in temp restricted net assets based on a proposed adjusting journal entry from the auditors during FY 2021 audit. $388,728 was refunded to the grantor and should have been recorded as accounts payable at year end FY 2021 and the remainder $304,177 should be classified as deferred revenue as the grantor extended the time period for earning the revenue. $11,112 was earned and the expenses were accrued during the period of performance of the contract in FY 2021 and should not have been included in the auditor?s total of $704,017. The practice of ULMS was to record forward funded contracts in revenue and record an adjustment at year end to temporary restricted funds. Net spendings for each program was communicated to the grantor and appropriate actions taken based on grantor?s instruction. The grantor was informed of the underspent funds prior to the commencement of the audit and management refunded the underspent funds as requested by the funder in compliance with contract terms.It is Management?s position that these Findings should be withdrawn. The longstanding practice of the organization was to record revenue upon receipt of funds and at year end prepare an adjustment to net asset with donor restriction. Consistency in accounting presentation is an essential concept to financial statement preparation. The accounting staff followed the recommendation of the auditor in FY 2021 audit by recording AJE 23. Now the organization is being critiqued in FY 2022 for recording the proposed adjustment and following the recommendation of the auditor.Actions to be taken: The organization?s policy has changed to record all unearned revenue as deferred revenue. ULMS hired a professional CPA with over 10 years? experience in nonprofit auditing as the new Financial Controller.? Management disagrees with auditors? recommendation to impound the funds of Black Lives Matter Seattle King County (BLMSKC) received through the fiscal sponsorship agreement. However, ULMS executed the auditor?s recommendation.Actions to be taken: ULMS will hold the funds of BLMSKC until the organization receives documentation allowing the legal release of the funds.

View Audit 312222

Finding 419310 (2022-004)

Material Weakness 2022

Urban League of Metropolitan Seattle

WA

Reporting

ULMS Corrective Action Plan for FY 21-22 Audit FindingsULMS faced significant challenges with the departure of its longtime CFO two months post fiscal year 2021. In addition, the third-party management company who had been responsible for the Partnership accounting, ceased the relationship abruptly...

ULMS Corrective Action Plan for FY 21-22 Audit FindingsULMS faced significant challenges with the departure of its longtime CFO two months post fiscal year 2021. In addition, the third-party management company who had been responsible for the Partnership accounting, ceased the relationship abruptly without opportunity to smoothly transition the responsibility in-house to ULMS. Our external auditor does not prepare a Management Letter typically used to communicate with the Board of Directors and Governance issues that may not elevate to a finding. As such, significant findings are reflected in Section III ? Federal Award Findings and Questioned Costs.FY 2021 was the organization?s first single audit reporting requirement. ULMS engaged a third-party CPA to review past audit and current documents needed to commence the FY 2022 audit. However, due to an emergency there was limited independent review of documents prior to being submitted to the auditor due to time constraints. ULMS continues to strengthen its accounting team and has hired a new Controller in July 2023. The new Controller is a licensed CPA with over 30 years accounting experience and over 10 years? experience as an independent auditor for a range of organizations including non-profits. The Controller will collaborate with the CFO to ensure there is accuracy in reporting, especially for major federal programs. Finding #: 2022-004Contact Person: Mansour Camara? Management does not agree that this finding should be noted. As indicated in the beginning of the response, the auditor does not produce a management letter and as such, issues such as late submission to FAC are included as a finding instead of being included in management letter. Management had requested a September 2022 audit start date, but the auditor was only available until October 2022. The Board decided to delay the audit until a CPA could be hired in November 2022 to review the findings of previously issued audit report. The audit was rescheduled to start in December 2022 for an agreed upon March 2023 completion date. Management forwarded the audit schedules to the auditors in January 2023. The auditor further delayed the commencement of ULMS audit to focus on the audit of Urban League Village at Coleman School causing at least an additional 2-month delay. Next, the auditors waited an additional 2 months for a confirmation receipt from a grantor.Actions to be taken: Management will file the audited financials to FAC within 30 days of issuance of the financial statements. Management will ensure subsequent audits are submitted to FAC in a timely manner.

View Audit 312222

Finding 419309 (2022-002)

Material Weakness 2022

Urban League of Metropolitan Seattle

WA

Reporting § 200.305 § 200.502

ULMS Corrective Action Plan for FY 21-22 Audit FindingsULMS faced significant challenges with the departure of its longtime CFO two months post fiscal year 2021. In addition, the third-party management company who had been responsible for the Partnership accounting, ceased the relationship abruptly...

ULMS Corrective Action Plan for FY 21-22 Audit FindingsULMS faced significant challenges with the departure of its longtime CFO two months post fiscal year 2021. In addition, the third-party management company who had been responsible for the Partnership accounting, ceased the relationship abruptly without opportunity to smoothly transition the responsibility in-house to ULMS. Our external auditor does not prepare a Management Letter typically used to communicate with the Board of Directors and Governance issues that may not elevate to a finding. As such, significant findings are reflected in Section III ? Federal Award Findings and Questioned Costs.FY 2021 was the organization?s first single audit reporting requirement. ULMS engaged a third-party CPA to review past audit and current documents needed to commence the FY 2022 audit. However, due to an emergency there was limited independent review of documents prior to being submitted to the auditor due to time constraints. ULMS continues to strengthen its accounting team and has hired a new Controller in July 2023. The new Controller is a licensed CPA with over 30 years accounting experience and over 10 years? experience as an independent auditor for a range of organizations including non-profits. The Controller will collaborate with the CFO to ensure there is accuracy in reporting, especially for major federal programs. Finding #: 2022-002Contact Person: Mansour Camara? Management has determined that the finding as written is misleading. The Schedule of Expenditures of Federal Awards (SEFA) prepared by ULMS initially contained errors. However, all errors were corrected by the time the draft financial statements were presented. There was no financial impact on the organization and the most significant issue on the SEFA schedule was a result of miscommunication with ULMS? funding source including the lack of clear identification of the funding source within the contract.Actions to be taken: ULMS migrated to a new and more sophisticated accounting system. This new system has more reporting and tracking capabilities which will enhance grant tracking and review of activities. These additional tools will aid management in overseeing future endeavors. In addition, ULMS will proactively contact the CFO or contract signer of the funding entity and confirm the source of funding for all grants over $100,000. ULMS will participate in more nonprofit conferences on a regional and national level.

View Audit 312222

Finding 418878 (2022-004)

Material Weakness 2022

Iberville Parish School Board

LA

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Special Tests & Provisions

The CFO intends to develop acceptable policies and procedures regarding compliance with all federal agencies or entities regarding contracts, in particular the provisions of Appendix II of Part 200 of Uniform Guidance. The CFO plans to share the policies with all departments who might be signing con...

The CFO intends to develop acceptable policies and procedures regarding compliance with all federal agencies or entities regarding contracts, in particular the provisions of Appendix II of Part 200 of Uniform Guidance. The CFO plans to share the policies with all departments who might be signing contracts on behalf of the IPSB using federal funds to ensure compliance with the policies.

View Audit 312214

Finding 418506 (2022-002)

None 2022

Lone Grove School District I-32

OK

Allowable Costs / Cost Principles § 200.430

The District has implemented procedures for time and effort

View Audit 312192

Finding 418493 (2022-002)

Material Weakness 2022

City of Seattle

WA

Subrecipient Monitoring

Finding ref number: 2022-002Finding caption:The City?s internal controls were inadequate for ensuring compliance with federal reporting requirements.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684.0574Theresa George, HSD Acco...

Finding ref number: 2022-002Finding caption:The City?s internal controls were inadequate for ensuring compliance with federal reporting requirements.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684.0574Theresa George, HSD Accounting Manager, 206.798.3360Corrective action the auditee plans to take in response to the finding:HSD hired a consultant service (TDA) in response to prior SAO feedback, which will strengthen our internal controls over federal reporting requirements to ensure our Cash on Hand Quarterly Reports and FFATA reports are accurate and submitted timely moving forward. HSD will continue to clarify roles and responsibilities for reporting and central reporting and archiving of confirmation reports to increase internal control of this function.TDA consulting will add capacity to HSD?s Federal Grants Management Unit to clear its 2022 FFATA reporting backlog while HSD addresses current staffing shortages. In addition to clearing the reporting backlog, HSD?s contractor is assisting with the development of policies and procedures to better facilitate the conducting of data quality reviews to address accuracy issues identified with Cash on Hand Quarterly Reports (PR29 and PR29-CV) to better report information such as cash on hand, program income and revolving fund funding levels.As part of its scope of work, TDA has developed a workplan focusing on the establishment of a staffing plan recommendation, the associated role assignments for the future staffing structure and documenting reporting procedures to assure reporting compliance moving forward. Anticipated date to complete the corrective action:12/31/2023

View Audit 312191

Finding 418479 (2022-001)

None 2022

City of Seattle

WA

Questioned Costs Allowable Costs / Cost Principles Reporting

Finding ref number: 2022-001Finding caption:The City charged payroll-related expenditures that lacked support to the Community Development Block Grants/Entitlement Grants program.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684...

Finding ref number: 2022-001Finding caption:The City charged payroll-related expenditures that lacked support to the Community Development Block Grants/Entitlement Grants program.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684.0574Theresa George, HSD Accounting Manager, 206.798.3360Corrective action the auditee plans to take in response to the finding:HSD Response:HSD as the CDBG administrator, in collaboration with its contracted consultant support TDA consulting, will complete the following steps to support the resolution of this finding associated with the pre-approval of timesheets within the Office of Housing, and the Department of Parks and Recreation.HSD will conduct a thorough review of all existing MOAs with our recipients to ensure that the language pertaining to pre-approved timesheets is clear, consistent, and aligned with federal and state regulations. HSD will also assure staff responsible for administering CBDG funds and other federal funds are oriented to federal requirements regarding the pre-approval of timesheets and will emphasize the importance of adhering to the requirements outlined in the MOAs. HSD will encourage its city partners receiving these funds to work with the City-Wide Accounting team to adopt standardized procedures for the approval, documentation, and tracking of timesheets.Office of Housing Response:The Office of Housing will change its timesheet review procedures in order to ensure manager sign-off happens no sooner than the close of business on the final day of the pay period. Current procedure is for the Office Housing Accountant to send an email reminding all managers to sign-off on timesheets; effective 10/1/23 this message will add the specific reminder that all employees funded by federal grant revenues should not have their timesheets approved until after all hours have been worked.Parks and Recreation Response:Moving forward, Seattle Parks and Recreation (SPR) will follow the City-Wide Accounting guidance provided on June 6th, 2023 which requires employees to not submit timesheets earlier than the federally grant-funded work is performed.SPR department leadership have immediately notified the CDBG management team to re-emphasize the requirement. In addition, the SPR payroll team will also provide a reminder of the requirement for all SPR staff for each payroll cycle. The SPR executive team will continue to monitor compliance relating to this recommendation.Anticipated date to complete the corrective action:Human Services Department: 12/31/2023Seattle Parks and Recreation: 9/15/2023Office of Housing:10/01/2023

View Audit 312191 Questioned Costs: $1

Finding 418478 (2022-003)

Significant Deficiency 2022

City of Seattle

WA

Subrecipient Monitoring Procurement, Suspension & Debarment

Finding ref number: 2022-003Finding caption:The City?s internal controls were inadequate for ensuring compliance with federal suspension and debarment requirements.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684.0574Theresa Ge...

Finding ref number: 2022-003Finding caption:The City?s internal controls were inadequate for ensuring compliance with federal suspension and debarment requirements.Name, address, and telephone of City contact person:Debra Rhinehart, HSD Interim Federal Grants Mgt Unit Manager, 206.684.0574Theresa George, HSD Accounting Manager, 206.798.3360Corrective action the auditee plans to take in response to the finding:HSD Response:HSD as the CDBG administrator, in collaboration with its contracted consultant support TDA consulting, will complete the following steps to support the resolution of this finding noting internal controls were inadequate for ensuring staff verified the suspension and debarment status of sub-recipients within the Office of Housing.HSD will conduct a thorough review of all existing MOAs with our recipients to ensure that the language pertaining to the verification and the documenting of the suspension and debarment status of sub-recipients is clear, consistent, and aligned with federal and state regulations. HSD will also assure staff responsible for administering CBDG funds and other federal funds are oriented to the importance of adhering to the debarment verification requirements outlined in the MOAs. HSD will encourage its city partners receiving these funds to work with other city partners to adopt standardized procedures for the verification and documentation of sub-recipient suspension and debarment status.Office of Housing Response:The Office of Housing will implement and communicate the following procedures: For all contracts expected to receive $25,000 or more in federal funds, the program staff person initiating the contract will first search the SAM website to verify that: the agency is registered, the agency?s registration status is active, and the agency does not have any active exclusions such as debarment or suspension. This status will be double-checked by the future Senior Contracts Specialist position before any contract is finalized.Anticipated date to complete the corrective action:The Office of Housing will hold a meeting of all relevant managers and supervisors on 9/26/23, during which all will be notified (or reminded) of the procedures described above. When the new Senior Contracts Specialist position is hired (estimated by 12/31/23), one of their first tasks will be to write and distribute a comprehensive contracts policy for the Office of Housing, which will include the procedures described above.

View Audit 312191

Finding 418238 (2022-008)

Material Weakness 2022

Huntley Project School District Number 24

MT

Questioned Costs Procurement, Suspension & Debarment

ACTIVITIES ALLOWED OR UNALLOWEDName of contact person: Rita HuckCorrective Action: The District understood that supplies could be bought with these funds in order to operate in the upcoming school year, due to the shortage of funds because of students not returning after the COVID-19 shutdown. The ...

ACTIVITIES ALLOWED OR UNALLOWEDName of contact person: Rita HuckCorrective Action: The District understood that supplies could be bought with these funds in order to operate in the upcoming school year, due to the shortage of funds because of students not returning after the COVID-19 shutdown. The wrestling mats and high jump pit mats that were purchased were chosen because of the Microban anti-bacterial surface of those mats.Proposed Completion Date: Immediately.

View Audit 312181 Questioned Costs: $1

Finding 418235 (2022-007)

Material Weakness 2022

Huntley Project School District Number 24

MT

Internal Control / Segregation of Duties

AUDITOR PREPARED FINANCIAL STATEMENTSName of contact person: Rita HuckCorrective Action: Huntley Project Schools has a yearly audit done by Olness and Associates. It is a very thorough audit. I review the financial statements and contact Olness and Associates with any questions or concerns. The D...

AUDITOR PREPARED FINANCIAL STATEMENTSName of contact person: Rita HuckCorrective Action: Huntley Project Schools has a yearly audit done by Olness and Associates. It is a very thorough audit. I review the financial statements and contact Olness and Associates with any questions or concerns. The District cannot financially afford to hire an additional CPA or auditing firm to review our financial statements. At this time, our Board of Trustees has decided not to hire an additional CPA to review the District?s financial statements.Proposed Completion Date: Immediately.

View Audit 312181

Corrective Action Plans

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