Corrective Action Plans

Finding 403906 (2022-006)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Allowable Costs / Cost Principles § 200.302

Corrective Action Plan: After monthly reconciliations, AJAC Directors will review all appropriate reimbursable direct expenses related to each grant or contract agreement. After an expense has been included on a reimbursable request, the transaction will be marked appropriately in the accounting sof...

Corrective Action Plan: After monthly reconciliations, AJAC Directors will review all appropriate reimbursable direct expenses related to each grant or contract agreement. After an expense has been included on a reimbursable request, the transaction will be marked appropriately in the accounting software to ensure that transactions are submitted for reimbursement correctly. All necessary reclasses will be performed in the accounting software to match the reimbursement request (invoice). Anticipated Completion Date: Completed

View Audit 310790

Finding 403905 (2022-005)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.302

Corrective Action Plan: After monthly reconciliations, AJAC Directors will identify all appropriate indirect expenses specific to each grant or contract agreement and request reimbursement for actual indirect expenses up to the 10% de minimis rate. All items identified as being reimbursable to a spe...

Corrective Action Plan: After monthly reconciliations, AJAC Directors will identify all appropriate indirect expenses specific to each grant or contract agreement and request reimbursement for actual indirect expenses up to the 10% de minimis rate. All items identified as being reimbursable to a specific grant or contract will be reclassed in the accounting software to match the reimbursement request (invoice). Anticipated Completion Date: 09/01/2024

View Audit 310790

Finding 403904 (2022-004)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Allowable Costs / Cost Principles § 200.302

Corrective Action Plan: AJAC Directors will develop and implement policies and procedures for appropriate methods of calculation that ensure benefit allocations are aligned with wage allocations at an employee level. Invoicing will reflect actual benefit expenses up to a predetermined amount or perc...

Corrective Action Plan: AJAC Directors will develop and implement policies and procedures for appropriate methods of calculation that ensure benefit allocations are aligned with wage allocations at an employee level. Invoicing will reflect actual benefit expenses up to a predetermined amount or percentage that is unique to each individual grant or contract agreement. Anticipated Completion Date: Completed

View Audit 310790

Finding 403903 (2022-003)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

Corrective Action Plan: The deficiencies related to internal control policies and procedures were initially identified in a Federal Desk Monitoring Review conducted in November 2022. Internal control policies and procedures were updated in response to these findings and approved by DOL on October 26...

Corrective Action Plan: The deficiencies related to internal control policies and procedures were initially identified in a Federal Desk Monitoring Review conducted in November 2022. Internal control policies and procedures were updated in response to these findings and approved by DOL on October 26, 2023. All policies and procedures related to federal grant agreement compliance will be reviewed and updated on an annual basis by AJAC Directors and Supervisors. Anticipated Completion Date: Completed

View Audit 310790

Finding 403902 (2022-002)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles

Corrective Action Plan: The deficiencies related to internal control policies and procedures were initially identified in a Federal Desk Monitoring Review conducted in November 2022. Internal control policies and procedures were updated in response to these findings and approved by DOL on October 26...

Corrective Action Plan: The deficiencies related to internal control policies and procedures were initially identified in a Federal Desk Monitoring Review conducted in November 2022. Internal control policies and procedures were updated in response to these findings and approved by DOL on October 26, 2023. All financial reporting policies and procedures will be reviewed and updated on an annual basis by AJAC Directors and Supervisors. Anticipated Completion Date: Completed

View Audit 310790

Finding 403901 (2022-001)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Corrective Action Plan: AJAC Accounting Department, Directors, and Supervisors will ensure that accounting books and records are kept on the accrual basis of accounting through the following actions: 1) Reporting all revenue in the month the reimbursable expenses were incurred. Accruals will be reco...

Corrective Action Plan: AJAC Accounting Department, Directors, and Supervisors will ensure that accounting books and records are kept on the accrual basis of accounting through the following actions: 1) Reporting all revenue in the month the reimbursable expenses were incurred. Accruals will be recorded when billing is anticipated after the close of each month and/or quarter. 2) Receiving and reporting all expenses in the month the services were incurred. Accruals will be recorded when billing is anticipated after the close of each month and/or quarter. 3) G/L account reconciliations and review shall be implemented monthly with Accounting Department and AJAC Directors to ensure accuracy of financial reports. Anticipated Completion Date: Completed

View Audit 310790

Finding 403891 (2022-003)

Material Weakness 2022

Lauderdale County, Mississippi

MS

Subrecipient Monitoring § 200.332

This payment was a one-time payment for a single project completed by the City of Meridian. Moving forward, Lauderdale County will document the completion of the project.

View Audit 310764

Finding 403889 (2022-003)

Significant Deficiency 2022

West Alabama Aids Outreach, Inc.

AL

Questioned Costs Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers and a purchasing manager to help ensure policies and procedures are being followed. In response to this finding, the CFO and Director of Grants Management have institute...

Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers and a purchasing manager to help ensure policies and procedures are being followed. In response to this finding, the CFO and Director of Grants Management have instituted multiple internal processes to confirm administrative fees do not exceed 10% of grant award. The grant biller will prepare a monthly reimbursement schedule in Excel which shows the budgeted amount for each category. The Director of Grants Management reviews and approves this schedule to ensure it meets the grant requirements. Each individual monthly reimbursement form is approved and signed by the Director of Grants Management to confirm accuracy. Then the reimbursement form submitted is entered in a master spreadsheet "Projects by Line Item" which shows original budget, monthly amounts billed for each budget line item, and remaining balance for each item. This is reviewed each month to ensure no amounts, including the administrative costs exceed approved amounts. Anticipated Completion Date: 9/30/2023 Responsible Contact Person: Chris White, CFO

View Audit 310763 Questioned Costs: $1

Finding 403888 (2022-002)

Significant Deficiency 2022

West Alabama Aids Outreach, Inc.

AL

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.303

The CFO has instituted multiple approvals for each reimbursement or purchase request. Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers, and a purchasing manager to help ensure policies and procedures are being followe...

The CFO has instituted multiple approvals for each reimbursement or purchase request. Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers, and a purchasing manager to help ensure policies and procedures are being followed. For reimbursements, employees will complete an Employee Reimbursement Form which is signed by the employee and employee's direct supervisor. For purchase requests, employees will complete a Purchase Order form which is signed by the employee and the employee's supervisor. The signed form is sent to the finance department where it is entered in Bill.com for payment by accounts payable personnel. The Director of Finance approves the reimbursement or purchase on Bill.com, then the CFO approves and releases for payment. The approved Reimbursement Form or Purchase Order is sent to the Director of Grants Management, and if eligible, attached to the monthly billing to grantor for reimbursement. Anticipated Completion Date: 9/30/2023 Responsible Contact Person: Chris White, CFO

View Audit 310763

Finding 403822 (2022-007)

Significant Deficiency 2022

Jft Recovery and Veterans Support Services

PA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management § 200.302 § 200.303 § 200.318 § 200.319 § 200.430

Policies will be placed and adopted by the agency that meet the UG code. These policies will be placed in the fiscal manual. The fiscal manual will be created by using federal guidelines and by using the DDAP fiscal manual as guidance.

View Audit 310733

Finding 403821 (2022-006)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Reporting

To better prepare for the SEFA, JFT has started organizing and tracking revenues and expenses in the accounting system by source. As stated earlier there have been checks and balances put into place through existing and new policies. This has been done with the above listed assigning and hiring of...

To better prepare for the SEFA, JFT has started organizing and tracking revenues and expenses in the accounting system by source. As stated earlier there have been checks and balances put into place through existing and new policies. This has been done with the above listed assigning and hiring of extra staff for the fiscal department, QuickBooks, hiring of the accountants from Gift CPAs, a new filing system, a receipt machine and the new policies that will be in the newly created fiscal manual that is being worked on currently and was completed by July 1, 2023.

View Audit 310733

Finding 403820 (2022-005)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Allowable Costs / Cost Principles Cash Management Material Weakness

As of 2023 we will be adding the following policy to the fiscal manual and to the operations manual to read as follows: All monthly program reports shall be completed by the coordinator and sent to the Deputy Director for approval, once approved they will be sent to the Fiscal Coordinator. The Fis...

As of 2023 we will be adding the following policy to the fiscal manual and to the operations manual to read as follows: All monthly program reports shall be completed by the coordinator and sent to the Deputy Director for approval, once approved they will be sent to the Fiscal Coordinator. The Fiscal Coordinator will then complete the billing amount and fiscal narrative then the report will be reviewed by the Deputy Director. Once approved the report will be presented to the Executive Director for final review, approval and signature and date placed on each report before it is sent to the funder. All program coordinators will complete a JFT outcomes report that is placed in an electronic reporting system and these reports will be reviewed quarterly by the Deputy Director. The Deputy Director does data analysis and these reports are placed in narrative form by the Deputy Director quarterly and the year-end report. These are shared with the funders according to the reporting requirements in the grant. All reports must be to funders by the 15th of the following month, unless otherwise stated in funder contract. The following policy will also be added to the fiscal manual: All budget modifications will be written up on the budget modification form and sent to the funder electronically once approved the form will be notated and include the funders signature, written on the form verbal communication from the funder, or a copy of the email with funder approval.

View Audit 310733

Finding 403819 (2022-004)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Questioned Costs Allowable Costs / Cost Principles

In 2022 and 2023 we have developed a system that better separated and tracked expenditures by grant. We have made the following adjustments already: 1. We have purchased software and a device to read and store receipts into the computer system. We have purchased and are using QuickBooks. All ex...

In 2022 and 2023 we have developed a system that better separated and tracked expenditures by grant. We have made the following adjustments already: 1. We have purchased software and a device to read and store receipts into the computer system. We have purchased and are using QuickBooks. All expenditures and incoming funds will be placed into the QuickBooks system. Any expenditure is then filed by grant, by month with a copy of the invoice, bill, etc. documentation as well as the receipt that corresponds. All files will be kept in a locked cabinet in the fiscal office. At the end of each year all past year records will be stored and kept for 7 years. 2. We have hired a person to do data entry and bookkeeping part time. 3. We have devoted our Administrative Coordinator to take responsibility for HR and fiscal matters to serve as a check and balance system as well as to take the larger load from the Fiscal Coordinator since we have grown. 4. The final thing JFT has done is to hire an accounting firm called Gift CPAs to come in as a final check and balance. Gift CPAs has been able to give our agency training on fiscal matters that were not clear, they have been able to expand our knowledge and use of the QuickBooks System and helped us set up proper checks and balances to better ensure that everything that is charged to each grant is well documented.

View Audit 310733 Questioned Costs: $1

Finding 403818 (2022-003)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Allowable Costs / Cost Principles § 200.430

JFT does have all the board minutes on file. However, because we were a small agency, salary rates were not often changed. Additionally, all salary rates and changes were always driven by the ability to obtain the funding needed. Since we were small and there was not always a lot to discuss with ...

JFT does have all the board minutes on file. However, because we were a small agency, salary rates were not often changed. Additionally, all salary rates and changes were always driven by the ability to obtain the funding needed. Since we were small and there was not always a lot to discuss with the board our board only met twice a year. Therefore, all salary was discussed with the board president, then taken to the board. Unfortunately, there is no formal documentation at this time. As of 2023 our board now meets quarterly. Therefore, the following policy will be included in the fiscal manual: the JFT board of directors will hold a public meeting quarterly. All matters of pay rates and salaries will be approved at the start of each grant cycle. State and county grants will be discussed prior to the July 1 start dates, all federal grants will be discussed prior to October 1. Any changes in salary must be approved by the board and documented in official board minutes. All board minutes will be placed in a locked file in the Fiscal Coordinator’s office.

View Audit 310733

Finding 403817 (2022-002)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Questioned Costs Allowable Costs / Cost Principles § 200.430

Starting in 2023 all employees of the Organization will complete formal time sheets. These sheets will be signed by the Administrative Coordinator and by the Fiscal Coordinator and then entered into the system each pay period to rectify this finding.

View Audit 310733 Questioned Costs: $1

Finding 403816 (2022-001)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Internal Control / Segregation of Duties Material Weakness

In 2022 we were a small agency with minimal experience with federal and state grants. All our funding prior to this was private donations, fundraising and county funding. We grew very quickly in a short period of time. At the beginning of 2020, when we first received federal funding, we had six emp...

In 2022 we were a small agency with minimal experience with federal and state grants. All our funding prior to this was private donations, fundraising and county funding. We grew very quickly in a short period of time. At the beginning of 2020, when we first received federal funding, we had six employees and have since grown to over 40 employees. Since the time of the audit, we have gained knowledge and have already made changes to better meet the needs of our grant providers and our organization. With the segregation of duties, we started out with just one person handling the billing and the Executive Director overseeing all fiscal aspects. In the beginning of 2023, we have added two staff that work directly with the fiscal department to help with the segregation of duties and to have improved checks and balances in this department.

View Audit 310733

Finding 403696 (2022-003)

None 2022

Nacogdoches Memorial Hospital District

TX

Allowable Costs / Cost Principles Special Tests & Provisions Cash Management

We are in receipt of the findings required to be reported by the single audit for COVID19 Claims Reimbursement for the Uninsured Program and the COVID19 Coverage Assistance Fund specifically, regarding discrepancies in funding received under a different employer identifier number. Management does no...

We are in receipt of the findings required to be reported by the single audit for COVID19 Claims Reimbursement for the Uninsured Program and the COVID19 Coverage Assistance Fund specifically, regarding discrepancies in funding received under a different employer identifier number. Management does not dispute the finding. The District is in it’s second year after going through an asset purchase transaction, whereby the physical assets were retained by the District, but the operations of the hospital were sold. As the District moves forward, we will work to develop policies and procedures over financial reporting to ensure they only request reimbursement for federal grants for programs with the correct employer identification number. Lynn Lindsey, Chief Financial Officer, will be responsible to ensure that this is accomplished and will begin to implement new procedures. The corrective action plan will be implemented by September 30, 2024.

View Audit 310696

Finding 403627 (2022-002)

Significant Deficiency 2022

Birmingham Jefferson County Transit Authority

AL

Reporting Significant Deficiency § 200.512

Views of Responsible Officials and Planned Corrective Actions: The Authority encountered several challenges closing its books for 2022. These challenges included (1) the adoption and implementation of a new accounting pronouncement, which required the restatement of the prior year’s financial stat...

Views of Responsible Officials and Planned Corrective Actions: The Authority encountered several challenges closing its books for 2022. These challenges included (1) the adoption and implementation of a new accounting pronouncement, which required the restatement of the prior year’s financial statements, (2) the need to obtain appropriate property values for a significant donation and (3) staff turnover in key financial positions. These challenges which occurred within a short time frame prolonged the time needed to close the books and start the 2022 yearend audit. Although the adoption of a new accounting pronouncement and valuation of property from donors are infrequent events and not likely to recur soon, the Authority continues to experience higher than desired staff turnover. We believe our current staff is adequate to perform routine accounting and financial processes timely and accurately, and we remain committed to attracting and retaining experienced staff to further the goals and ideals of the Authority and to ensure that we can submit the reporting package to the Federal Audit Clearinghouse by the prescribed due date. Contact Person Responsible for Corrective Action: Glenn Dickerson, CPA — Chief Financial Officer Anticipated Completion Date: August 2024

View Audit 310676

Finding 403613 (2022-001)

None 2022

Foundation for Puerto Rico, Inc.

PR

Reporting Internal Control / Segregation of Duties § 200.512

The Organization has established procedures to ensure that the Data Collection Form and Single Audit report are submitted within the established due date. Although the organization provided documentation in a complete and timely manner, unforeseen timing and resources issues, within the auditor fir...

The Organization has established procedures to ensure that the Data Collection Form and Single Audit report are submitted within the established due date. Although the organization provided documentation in a complete and timely manner, unforeseen timing and resources issues, within the auditor firm, did not allow us to perform and complete pending audit procedures and issue the report during the required period, in spite of exhausting all effort.

View Audit 310659

Finding 403502 (2022-002)

None 2022

Firstmed Health and Wellness Center

NV

Cash Management Reporting

The Center has established clear reporting calendars with due dates. With significant turnover within accounting and finance departments, this responsibility has been reassigned and monitored by the CFO.

View Audit 310590

Finding 403501 (2022-001)

Significant Deficiency 2022

Firstmed Health and Wellness Center

NV

Reporting Internal Control / Segregation of Duties

The Center has established month end and annual reporting calendars with due dates. With significant turnover within executive and finance departments, this responsibility has been reassigned and monitored by the CFO.

View Audit 310590

Finding 403494 (2022-002)

None 2022

Columbia River Mental Health Services

WA

Reporting

Procedures have been implemented to monitor due dates of required reports and also identify grant awards with carryover provisions to ensure appropriate utilization of grant funds.

View Audit 310576

Finding 403366 (2022-002)

Material Weakness 2022

City of Delta Junction, Alaska

AK

The City will work to create a Standard Operating Procedure to ensure that any future lack of staff will not result in a delay in compliance. Implementation: Immediately.

View Audit 310498

Finding 403365 (2022-001)

Material Weakness 2022

City of Delta Junction, Alaska

AK

The City will work more diligently to determine what grants are federal and which are not. The City will work to create an application process for employees to use when applying for grants. Implementation: Immediately.

View Audit 310498

Finding 403360 (2022-005)

Material Weakness 2022

Jackson County

OH

Period of Performance Reporting

Reporting was corrected in the 2024 report.

View Audit 310485

Corrective Action Plans

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