Corrective Action Plans

Finding 33921 (2022-002)

Material Weakness 2022

IL

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring § 200.303

Finding 2022-002 (Assistance Listing 14.881) N14. Recording of Declarations of Trust/Declaration of Restrictive Covenants Against Public Housing Property Corrective Action Plan: ? Summary of Finding - Special Test Provisions There were nine of the seventeen Declarations of Trust selected for testin...

Finding 2022-002 (Assistance Listing 14.881) N14. Recording of Declarations of Trust/Declaration of Restrictive Covenants Against Public Housing Property Corrective Action Plan: ? Summary of Finding - Special Test Provisions There were nine of the seventeen Declarations of Trust selected for testing of internal controls over compliance with recording of DOTs against public housing property with deviations and a compliance exception of the following nature: ? Four instances were identified in which incorrect Property Index Numbers (PINs) were recorded within the Authority?s Excel Monitoring spreadsheet when comparing the information on the DOT. As such, the Authority?s Excel monitoring spreadsheet required updating due to inaccurate data (control deviations). ? Six instances in which the incorrect DOT addresses were recorded in the Authority?s Excel monitoring spreadsheet when compared to the DOT filed with the State of Illinois (control deviations). ? One instance was identified in which incorrect PINs were recorded within the DOT when comparing the DOT to the Authority?s DOT Excel monitoring spreadsheet. As such, a Scrivener?s Affidavit was required to be recorded by the Authority (control deviation and compliance exception). ? Planned Actions: The CHA Office of the General Counsel conducted a comprehensive quality control review of both the Authority?s Excel Monitoring spreadsheets and the recorded DOTs, in response to the 2021 audit findings related to the CHA?s DOTs. During the quality control review process, which coincided with the same timing as the 2022 audit, Legal Department staff identified and corrected all discrepancies within the foregoing documents. This undertaking included the requisite corrections noted above. The CHA Office of the General Counsel is awaiting receipt of filed documents to be returned from the County Clerk?s Office to note the recording information on the respective Excel spreadsheets for accurate reference. Once this update is completed, all Excel spreadsheets will be locked allowing only one point of date entry by the Office of the General Counsel, while making the spreadsheets available as a ?read-only? file. Going forward, the quality control efforts to be undertaken will be to make sure that new DOTs are accurately prepared and identified on the Excel spreadsheets. Contact Person: Ellen M. Harris, Chief Legal Officer Anticipated Completion Date: End of 1st Qtr. 2024

View Audit 33257

Finding 33920 (2022-001)

Material Weakness 2022

Chicago Housing Authority

IL

HUD Housing Programs Eligibility Allowable Costs / Cost Principles § 200.303

Finding 2022-001 (Assistance Listing 14.881) Eligibility and Reporting (Form HUD-50058 MTW) Public Housing and Rental Assistance Demonstration (RAD) Corrective Action Plan: ? Summary of Finding ? Eligibility and Reporting ? Internal Controls ? There were four Public Housing tenants and three RAD ...

Finding 2022-001 (Assistance Listing 14.881) Eligibility and Reporting (Form HUD-50058 MTW) Public Housing and Rental Assistance Demonstration (RAD) Corrective Action Plan: ? Summary of Finding ? Eligibility and Reporting ? Internal Controls ? There were four Public Housing tenants and three RAD tenants for which control deviations were noted (8.8% overall MTW deviation rate). In the case that a recertification was to be performed in 2022, the nature of the control deviations are as follows: ? The examination/re-examination checklist was not initialed by the certification specialist (CS); therefore, the Authority did not retain evidence that the CS inspected all relevant forms (three instances). ? The examination/re-examination checklist was initialed by the CS, but forms were missing and/or not signed (one instance). ? Relevant forms were signed after the effective date and submittal to HUD (three instances). ? Relevant forms were missing and/or missing signature by the tenant and CS (five instances). ? Summary of Finding ? Eligibility and Reporting ? Compliance In addition, there were twelve compliance exceptions noted out of 100 tenants selected for the MTW program (12.0% overall MTW exception rate). ? The recertification was to be performed in 2022, relevant forms were missing and/or missing signature by tenant and recertification clerk (eight instances). ? The recertification was to be performed in 2022, third-party income support was not available and/or on file (four instances). ? The recertification was to be performed in 2022, third-party income support did not match the calculation amount (one instance). ? The recertification was to be performed in 2022, but was not performed within a reasonable timeframe (two instances). ? The recertification was to be performed, proper documentation was not available and/or on file to tie key line items within Form HUD-50058: total annual income, date of birth, and social security number (two instances). ? The recertification was to be performed in 2022, the reexamination file could not be located (one instance). ? Planned Actions: On March 31, 2023, a comprehensive, in-person training on the `Perfect File Folder? was conducted. It was inclusive of Private Property Management (PPM) firms for both Public Housing and RAD properties. By the end of 2023, each site will have and be required to maintain (and update as needed) a blank Perfect File Folder for site reference. Additionally, the Authority will require certification by the PPMs that 100% of the tenant files that have been reviewed in a calendar year have also been audited and purged. The Authority?s Portfolio Management team will conduct regular audit sampling from the files that have been certified as audited by the PPMs. Contact Person: Eric Garrett, Chief Property Officer Anticipated Completion Date: Q4 2023

View Audit 33257

Finding 33919 (2022-001)

Significant Deficiency 2022

Munson Healthcare and Subsidiaries

MI

Reporting Significant Deficiency

Finding Number: 2022-001 Condition: Munson Healthcare and Subsidiaries' controls in place over reporting submissions did not identify that the guidelines were not followed related to the options selected to indicate to the awarding agency how funding was spent. Planned Corrective Action: Munson gra...

Finding Number: 2022-001 Condition: Munson Healthcare and Subsidiaries' controls in place over reporting submissions did not identify that the guidelines were not followed related to the options selected to indicate to the awarding agency how funding was spent. Planned Corrective Action: Munson grant procedures will include a final review and reconciliation close out to identify any reports that need to be amended and sent to the awarding agency. Contact person responsible for corrective action: Nicole Sulak Anticipated Completion Date: 3/31/2023

View Audit 32812

Finding 33916 (2022-002)

Significant Deficiency 2022

Palisades Charter High School

CA

Questioned Costs Subrecipient Monitoring Equipment & Real Property Management § 200.311 § 200.313 § 200.439

RESPONSE TO AUDIT FINDING #2022-002: EDUCATION STABILIZATION FUND DISCRETIONARY GRANTS- SPECIAL TESTS AND PROVISIONS (50000) The charter has already submitted the capital expenditure request form to COE and is awaiting approval. The charter will review all required compliance requirements for all ne...

RESPONSE TO AUDIT FINDING #2022-002: EDUCATION STABILIZATION FUND DISCRETIONARY GRANTS- SPECIAL TESTS AND PROVISIONS (50000) The charter has already submitted the capital expenditure request form to COE and is awaiting approval. The charter will review all required compliance requirements for all new federal funding before purchases are made. The charter anticipates receiving the approval by December 31, 2023.

View Audit 31859 Questioned Costs: $1

Finding 33913 (2022-004)

Significant Deficiency 2022

Hawley Public Schools Isd 150

MN

Cash Management Reporting Significant Deficiency

Reporting ? Lack of Report Review Significant Deficiency in Internal Control over Compliance Finding Summary: During the course of the audit, Eide Bailly LLP noting there was no formal review of the meal claim summary reports that are submitted on a monthly basis for meal reimbursement. Responsible ...

Reporting ? Lack of Report Review Significant Deficiency in Internal Control over Compliance Finding Summary: During the course of the audit, Eide Bailly LLP noting there was no formal review of the meal claim summary reports that are submitted on a monthly basis for meal reimbursement. Responsible Individuals: Phil Jensen, Superintendent Corrective Action Plan: The District will establish an internal control for an independent review of the meal claims summary report and the claims made in CLiCS on a monthly basis to review for accuracy and completement. This review will be done by another district office staff member. Anticipated Completion Date: June 30, 2023

View Audit 24171

Finding 33912 (2022-001)

Significant Deficiency 2022

Nutrition and Health Education Resources

AZ

Cash Management Significant Deficiency

Findings and Questioned Costs Related to Federal Awards Finding Number: 2022-001 Program Name: Child and Adult Care Food Program (CACFP) Assistance Listing Number: 10.558 Anticipated Completion Date: June 19, 2023 Planned Corrective Action: We concur with the condition. NHER will continue to complet...

Findings and Questioned Costs Related to Federal Awards Finding Number: 2022-001 Program Name: Child and Adult Care Food Program (CACFP) Assistance Listing Number: 10.558 Anticipated Completion Date: June 19, 2023 Planned Corrective Action: We concur with the condition. NHER will continue to complete edit checks on 5% of manual menus to help increase clerical accuracy. Human error is always a factor and internal controls are in place to minimize this error. Page

View Audit 28954

Finding 33909 (2022-001)

Material Weakness 2022

San Juan Island School District No. 149

WA

Procurement, Suspension & Debarment School Nutrition Programs Subrecipient Monitoring

We purchased items via an interlocal agreement, ?piggybacking? on their contract. We had relied on the documentation done by the contracting agency instead of conducting a SAM verification ourselves. Prior to the audit, we had already updated our documentation for the subsequent year. We have revi...

We purchased items via an interlocal agreement, ?piggybacking? on their contract. We had relied on the documentation done by the contracting agency instead of conducting a SAM verification ourselves. Prior to the audit, we had already updated our documentation for the subsequent year. We have revised our procedure further to ensure a two person control on the completion and documentation of compliance with federal suspension and debarment requirements.

View Audit 28953

Finding 33908 (2022-001)

None 2022

Worknet Pinellas, Inc.

FL

Eligibility Student Financial Aid

WorkNet Pinellas, Inc. management and MIS Team reviewed the monitoring issue with the WIOA team and provided training on the subject. WorkNet Pinellas, Inc. has improved the enrollment process, hired an eligibility specialist and implemented Quality Control (QC) processes to include a review by the...

WorkNet Pinellas, Inc. management and MIS Team reviewed the monitoring issue with the WIOA team and provided training on the subject. WorkNet Pinellas, Inc. has improved the enrollment process, hired an eligibility specialist and implemented Quality Control (QC) processes to include a review by the eligibility specialist, Career Counselor, and WIOA Lead or MIS QC prior to enrollment to ensure eligibility and accuracy and to ensure "training services be limited to individuals who are unable to obtain other grant assistance for such services including Federal Pell Grants."

View Audit 29741

Finding 33904 (2022-002)

None 2022

The King's College and Subsidiaries

NY

Student Financial Aid Matching / Level of Effort / Earmarking

Federal Direct Loans and Pell Grants Reconciliations Planned Corrective Action: Implement a procedure where Pell Grants and Direct Loans are reconciled by student using reports from CAMS as well as COD. Person Responsible for Corrective Action Plan: Anna Peters Anticipated Date of Completion: May 31...

Federal Direct Loans and Pell Grants Reconciliations Planned Corrective Action: Implement a procedure where Pell Grants and Direct Loans are reconciled by student using reports from CAMS as well as COD. Person Responsible for Corrective Action Plan: Anna Peters Anticipated Date of Completion: May 31, 2023

View Audit 29133

Finding 33903 (2022-001)

Significant Deficiency 2022

The King's College and Subsidiaries

NY

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Inaccurate Return of IV (R2T4) Funds Planned Corrective Action: A review of all R2T4s performed for students in our on-line program will be completed. The review will include recalculating Pell Grants for students that did not begin attendance in courses. It will also include adding the break betwee...

Inaccurate Return of IV (R2T4) Funds Planned Corrective Action: A review of all R2T4s performed for students in our on-line program will be completed. The review will include recalculating Pell Grants for students that did not begin attendance in courses. It will also include adding the break between modules into the dates on the R2T4. Person Responsible for Corrective Action Plan: Anna Peters Anticipated Date of Completion: May 31, 2023

View Audit 29133

Finding 33894 (2022-004)

Significant Deficiency 2022

Bethesda University

CA

The CARES ACT, the CRRSAA and the ARP require an institution receiving funds under any of the three HEERF funding programs to submit a report to the Secretary, at such time in such a manner as the Secretary may require. Bethesda University will ensure that the quarterly and yearly reports are tim...

The CARES ACT, the CRRSAA and the ARP require an institution receiving funds under any of the three HEERF funding programs to submit a report to the Secretary, at such time in such a manner as the Secretary may require. Bethesda University will ensure that the quarterly and yearly reports are timely submitted and those reports would be reflected accurately to the institutional expenditures by following procedures. Section I. The Committee The CARES ACT, the CRRSAA and the ARP grants are temporary, short-term financial assistance and the funds shall be directly reviewed by the CARES Act Grant Committee which is comprised of the following members: Chief Financial Officer (the Chair of the Committee), Financial Aid Director, Accountant as a regularly attending member. One representative from General Affairs, Academics, and Online Technical Support will be invited if needed. The committee will regularly meet once a month to review any expenses that may qualify and if there is special agenda, the Chair of the Committee will initiate an additional meeting. ? The committee will meet electronically or in person may conduct its business via email, web conference and/or tele-conference. ? The committee shall keep a log of all grant decisions and grant award amounts. The secretary of the Committee is one personnel representing from accounting. ? Only expenses approved by the committee will be paid with the COVID Funds. SECTION II. Expense Categories The Committee will use the following categories in their approval process, the expense must meet at least two categories to be approved. 1) Expense occurred because of Distance Education 2) Expense occurred because of additional tools needed to communicate with students 3) Sanitation Expenses 4) Information Technology Infrastructure 5) Information Technology Software 6) Need due to Pandemic Bethesda University participated in the Payroll Protection Program. PPP loan is used to cover payroll costs (salary, wage, commission or similar up to $100,000, Cash tips or equivalent/ Payment for vacation, parental, family medical or sick leave/ dismissal or separation allowance/ Group health care benefit payments (including insurance premiums)/ Retirement benefits/ State and local taxes (based on employee compensation), Mortgage interest payments, Rent payments, and Utilities. Emergency Financial Aid Grants to Institutions is used to cover other expenses occurred because of Distance Education in order not to double dip with PPP loans. Section III. Reporting Federal law requires Bethesda University to post information regarding the CARES Act, HEERF Awards. Each HEERF participating institution must post the information on the institution?s primary website in a format and location that is easily accessible to the public. Therefore, the committee reviews the quarterly andannual reports and ensures that they are posted on the institution?s website https://www.buc.edu/caresact and date of release is deadline date for form submission. Office of Financial Aid is responsible for submitting a draft for determining how grants will be distributed to students, how the amount of each student grant is calculated, and the development of any instructions or directions that are provided to students about the grant. Financial aid officials are also responsible for submitting the reports to the HEERF Program Specialist in the Emergency Response Unit of the Department of Education. The accountant will be responsible for compiling the list of possible expenses for the committee to review, for the proper accounting of all COVID Relief Funds, and for completing the forms. The accountant also makes sure that only expenses approved by the committee will be paid with the COVID Funds. The Online Support team is responsible for posting the reports in a format and make sure those reports are in digital PDF format and maintained three years after performance period end date. Person Responsible for Corrective Action Plan: Sheng Wang, Chief Financial Officer Anticipated Date of Completion: June 30, 2023

View Audit 28952

Finding 33893 (2022-003)

Significant Deficiency 2022

Bethesda University

CA

Procurement, Suspension & Debarment § 200.318

The University reviewed and evaluated our current procurement policy and procedure and identified the deficiency on not clearly defining criteria, missing detailed steps, and ensuring ways to maintain proper documentation. Of the purpose of procurement policy, the University updated the following...

The University reviewed and evaluated our current procurement policy and procedure and identified the deficiency on not clearly defining criteria, missing detailed steps, and ensuring ways to maintain proper documentation. Of the purpose of procurement policy, the University updated the following sections: ? Maximizing the university?s purchasing power by focusing on strategic sourcing and obtaining the best value. ? Leveraging its expertise in contract negotiations and supplier management to advantage the university. ? Streamlining processes and investing in new technologies to provide administrative efficiencies. ? Ensuring that purchases are made in accordance with all applicable university bylaws, laws, regulations, codes and ordinances. The updated procurement policy and procedure thoroughly states under ?Procure-To-Pay Process?, listing competitive bid process by 1. Submit specifications 2. Solicit bids a minimum of three bids 3. Evaluate proposals 4. Negotiate the agreement and make the award. Updated procurement policies and procedures will be properly followed and documented for all general disbursements paid for by federal funds. Person Responsible for Corrective Action Plan: Sheng Wang, Chief Financial Officer Anticipated Date of Completion: June 30, 2023

View Audit 28952

Finding 33882 (2022-001)

Significant Deficiency 2022

Ketchikan Gateway Borough School District

AK

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding 2022-001 Lack of Internal Controls over Reporting Name of Contact Person: Michael Robbins, Superintendent Corrective Action Plan: Reporting deadlines will be kept on a central calendar and District Administration will ensure that all contact information is up-to-date, includes multiple ind...

Finding 2022-001 Lack of Internal Controls over Reporting Name of Contact Person: Michael Robbins, Superintendent Corrective Action Plan: Reporting deadlines will be kept on a central calendar and District Administration will ensure that all contact information is up-to-date, includes multiple individuals within the District who can ensure reports are submitted and confirmed to have been received, including the Superintendent. The Superintendent will clearly delegate the responsibility of completing and submitting reports, and will direct the individual responsible for submission with the task of confirming receipt by the agency after submission. Reporting deadlines will be reviewed with the district leadership team in advance. Proposed Completion Date: December 1, 2022

View Audit 35451

Finding 33880 (2022-003)

None 2022

East Carroll Parish Hospital Service District

LA

Questioned Costs Allowable Costs / Cost Principles Cash Management

Name of Responsible Official: LaDonna Englerth, Administrator Anticipated Completion Date: February 28, 2023 Hospital?s Response: Management concurs with the finding and will implement additional internal controls over the identification of eligible expenditures for the Provider Relief Fund program ...

Name of Responsible Official: LaDonna Englerth, Administrator Anticipated Completion Date: February 28, 2023 Hospital?s Response: Management concurs with the finding and will implement additional internal controls over the identification of eligible expenditures for the Provider Relief Fund program and the completion of the required reports. The identified expenditures included gross payroll without consideration of allowable fringes, so the Hospital has already identified other costs not reimbursed by federal programs that are allowable under the PRF program.

View Audit 33903 Questioned Costs: $1

Finding 33879 (2022-001)

None 2022

Asi - Burnsville, Inc.

MN

HUD Housing Programs

ASI - BURNSVILLE, INC. HUD PROJECT NO. 092-HD011-WPD CORRECTIVE ACTION PLAN YEAR ENDED DECEMBER 31, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Burnsville, Inc. respectfully submits the following corrective action plan for the yea...

ASI - BURNSVILLE, INC. HUD PROJECT NO. 092-HD011-WPD CORRECTIVE ACTION PLAN YEAR ENDED DECEMBER 31, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Burnsville, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: December 31, 2022 The findings from the December 31, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT NONE FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Cause: Property management failed to obtain a signed EIV and You form from the tenant during the certification process. Recommendation: Property management should be reminded that obtaining all required documents is an important step in tenant management. Action Taken: Recertification staff obtained a signed copy of the EIV and You form in January 2023. If the Department of Housing and Urban Development has questions regarding this plan, please call Chuck Reuter at 651-645-7271.

View Audit 33371

Finding 33876 (2022-004)

Material Weakness 2022

Epic Blended Charter Schools

OK

Procurement, Suspension & Debarment

Finding 2022-004 Response and Corrective Action: In conjunction with our FY22 annual audit, please see the School?s corrective action plan below: In order to ensure proper procurement for contracts, a new policy was approved and implemented in January 2022 that meets the requirements outline in Unif...

Finding 2022-004 Response and Corrective Action: In conjunction with our FY22 annual audit, please see the School?s corrective action plan below: In order to ensure proper procurement for contracts, a new policy was approved and implemented in January 2022 that meets the requirements outline in Uniform Guidance. Expected completion date: Completed as of 01/2022 Party Responsible: Jeanise Wynn Contact Information: jeanise.wynn@epiccharterschools.org (405) 749-4550

View Audit 32504

Finding 33875 (2022-001)

Significant Deficiency 2022

Battered Women's Shelter

OH

Questioned Costs Eligibility

Identifying Number 2022-001 Finding: Documentation of rent reasonableness could not be located for three selected clients due to a flood that occurred at the Organization?s offices during December 2022. Action Taken: Management is using Rentellect.com software to verify rent reasonableness for a...

Identifying Number 2022-001 Finding: Documentation of rent reasonableness could not be located for three selected clients due to a flood that occurred at the Organization?s offices during December 2022. Action Taken: Management is using Rentellect.com software to verify rent reasonableness for all clients currently in the continuum of care program and is now maintaining a copy of all documentation that supports program eligibility of the clients in the cloud. If there are questions regarding this plan, please call Stephannie Garrett, CFO or Ashley Kline, Chief Program Officer at 330-374-0740.

View Audit 32353 Questioned Costs: $1

Finding 33869 (2022-001)

Material Weakness 2022

Bremerton School District No. 100-C

WA

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Bremerton School District No. 100-C September 1, 2021 through August 31, 2022 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Require...

Bremerton School District No. 100-C September 1, 2021 through August 31, 2022 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with wage rate requirements. Name, address, and telephone of District contact person: Cathie Seevers/Garth Steedman 134 Marion Ave N Bremerton, WA 98312 360-473-1034 Corrective action the auditee plans to take in response to the finding: While we did confirm the worker rates, BSD was not aware that the requirement to comply with wage rates included collecting the weekly payroll. We were reviewing them weekly on the Labor and Industries website. We are now aware and will make sure this is done in the future. We currently have federal projects and are making sure we collect these pay records weekly. This will also be added to our Purchasing Quick Guide, that we give to all schools and departments. Anticipated date to complete the corrective action: 5/8/2023

View Audit 32351

Finding 33865 (2022-002)

Material Weakness 2022

Bremerton School District No. 100-C

WA

Procurement, Suspension & Debarment Subrecipient Monitoring

Bremerton School District No. 100-C September 1, 2021 through August 31, 2022 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Require...

Bremerton School District No. 100-C September 1, 2021 through August 31, 2022 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-002 Finding caption: The District lacked adequate internal controls for ensuring compliance with federal suspension and debarment requirements. Name, address, and telephone of District contact person: Cathie Seevers/Jon Bell 134 Marion Ave N Bremerton, WA 98312 360-473-1034 Corrective action the auditee plans to take in response to the finding: We have controls in place however this one finding was received for one purchase that exceeded the purchase order amount. We had some staff turnover in the SPED department, and we finally have permanent staffing. The business office has reiterated the requirement of suspension and debarment and determined that it will be included on any purchase made with federal dollars that is close to the $20K amount. This will ensure that any potential overage is covered and allow the new staff to get more familiar with the requirement. Anticipated date to complete the corrective action: 5/8/2023

View Audit 32351

Finding 33864 (2022-001)

None 2022

Ame-Zion Trinity H.d.f.c., Inc.

NY

Reporting Internal Control / Segregation of Duties

The project did not make the required monthly deposits to the replacement reserve in the amount of $69,996 as the result of an oversight by the mortgage lender. The project is required to make monthly deposits to the reserve of $5,833. Management transferred $93,333 to the replacement reserve effect...

The project did not make the required monthly deposits to the replacement reserve in the amount of $69,996 as the result of an oversight by the mortgage lender. The project is required to make monthly deposits to the reserve of $5,833. Management transferred $93,333 to the replacement reserve effective March 22, 2023 to fund the delinquent amount. In addition, management contacted the mortgage lender to reinstate monthly reserve funding beginning April 1, 2023.

View Audit 32350

Finding 33863 (2022-003)

Material Weakness 2022

Michigan College Access Network

MI

Material Weakness

Finding Type Material Weakness, Repeat Finding Federal Program AmeriCorps, ALN #94.006 Condition During the audit, we noted a significant amount of adjusting journal entries were required to be recorded in order to adjust the year end balances to their appropriate amounts. This includes journa...

Finding Type Material Weakness, Repeat Finding Federal Program AmeriCorps, ALN #94.006 Condition During the audit, we noted a significant amount of adjusting journal entries were required to be recorded in order to adjust the year end balances to their appropriate amounts. This includes journal entries related to the Organization?s funding sources as of September 30, 2022. Criteria Accounting books and records should be complete and accurate and include all relevant documentation to support the amounts. Cause Formal procedures related to proper accounting practices were not in place to ensure all activities were addressed and reported appropriately in conformity with generally accepted accounting principles. Effect General ledger accounts were not analyzed and reviewed by management prior to the start of the audit to ensure financial records were properly recorded. Identification of a Repeat Finding This is a repeat finding from the 2021 audit, 2021-004. SECTION III (Continued) FEDERAL AWARD AUDIT FINDINGS (Continued) 2022-003 (Continued) Recommendation We recommend the Organization review and update, as necessary, its written procedures regarding processing and recording of transactions and monitor such processing to ensure that transactions are processed and reported and reconciled in an accurate manner. This includes maintaining documentation and support for each entry in an orderly fashion. Furthermore, the Organization should review each funding source agreement on a timely basis to verify the accounting treatment is in conformity with generally accepted accounting principles. Response Although management acknowledges that the number of journal entries was less than prior year, it will continue the implementation of new accounting processes and grant accounting treatment recommended from the current and previous year audits to limit the number of changes to the financial statements presented at the beginning of the audit to ensure that the journal entries recorded during future audit periods are non-substantive.

View Audit 31308

Finding 33862 (2022-002)

Material Weakness 2022

Michigan College Access Network

MI

Material Weakness

Finding Type Material Weakness Condition During the audit, we noted several instances in which the proper grant accounting was not applied to grant receivables and therefore contribution revenue. We also noted the proper classification between contributions with donor restrictions and without do...

Finding Type Material Weakness Condition During the audit, we noted several instances in which the proper grant accounting was not applied to grant receivables and therefore contribution revenue. We also noted the proper classification between contributions with donor restrictions and without donor restrictions was not achieved. Criteria ASU 2018-08 updates the definition of a contribution and distinguishes transactions between contributions and exchange transactions. For transactions determined to be contributions, the Organization must also determine if the contribution is conditional or unconditional as well as if there are any time or purpose restrictions resulting in the funds being classified as with donor restrictions until the restrictions are satisfied. Cause The proper procedures, including review of agreements and subsequent cash receipts, and related support documents, were not performed by the Organization. Effect The financial statements were not complete with respect to grants receivable and contribution revenue as well as the proper classification of contribution revenue between with donor restrictions and without donor restrictions. Recommendation We recommend all grant agreements and related support documents are reviewed to ensure proper cut-off is achieved. Response The organization has worked to improve its organizational knowledge regarding the accounting of all grant transactions. Key management personnel meet upon awarding of each new grant to discuss the accounting treatment of the grant. With this new process in place, we have made a significant shift to the new standard of recording revenue. While this process has been successful in the majority of grant recordings this past fiscal year, management recognizes we still have some room for growth. We plan to implement a new tracking document and updated spreadsheet as part of this process to ensure we are capturing all relevant information and recording revenue accordingly. This includes a detailed discussion considering the determinations of condition and restrictions. Management expects the new process to reduce the number of year-end adjustments. Management also welcomes assistance and/or tools to better guide revenue recognition.

View Audit 31308

Finding 33861 (2022-001)

Material Weakness 2022

Michigan College Access Network

MI

Material Weakness

Finding Type Material Weakness Condition During the audit, we noted a significant amount of adjusting journal entries were required to be recorded in order to adjust the year end balances to their appropriate amounts. This includes journal entries related to the Organization?s funding sources as...

Finding Type Material Weakness Condition During the audit, we noted a significant amount of adjusting journal entries were required to be recorded in order to adjust the year end balances to their appropriate amounts. This includes journal entries related to the Organization?s funding sources as of September 30, 2022. Criteria Accounting books and records should be complete and accurate and include all relevant documentation to support the amounts. Cause Formal procedures related to proper accounting practices were not in place to ensure all activities were addressed and reported appropriately in conformity with generally accepted accounting principles. Effect General ledger accounts were not analyzed and reviewed by management prior to the start of the audit to ensure financial records were properly recorded. Recommendation We recommend the Organization review and update, as necessary, its written procedures regarding processing and recording of transactions and monitor such processing to ensure that transactions are processed and reported and reconciled in an accurate manner. This includes maintaining documentation and support for each entry in an orderly fashion. Furthermore, the Organization should review each funding source agreement on a timely basis to verify the accounting treatment is in conformity with generally accepted accounting principles. Response Although management acknowledges that the number of journal entries was less than prior year, it will continue the implementation of new accounting processes and grant accounting treatment recommended from the current and previous year audits to limit the number of changes to the financial statements presented at the beginning of the audit to ensure that the journal entries recorded during future audit periods are non-substantive.

View Audit 31308

Finding 33860 (2022-004)

Material Weakness 2022

Stepping Stone School for Exceptional Children, Inc.

AR

Reporting

The current audit will be submitted to DHS and the FAC as soon as available and the Organization will work diligently to meet all future audit filing deadlines. The current year audit has been delayed by Federal provider relief funds received during the pandemic and the delay by Federal accounting b...

The current audit will be submitted to DHS and the FAC as soon as available and the Organization will work diligently to meet all future audit filing deadlines. The current year audit has been delayed by Federal provider relief funds received during the pandemic and the delay by Federal accounting bodies in clarifying the rules for reporting and auditing these funds. These funds are not anticipated to be received in future years and an audit in accordance with Uniform Reporting Standards is not anticipated. The audit was due by March 31, 2023 and is being submitted as quickly as all information can be obtained to complete the audit accurately.

View Audit 31304

Finding 33859 (2022-003)

Material Weakness 2022

Stepping Stone School for Exceptional Children, Inc.

AR

Internal Control / Segregation of Duties

Management feels that further segregation of duties is not practical with the limited number of personnel utilized in the accounting function. Additional oversight and monthly review procedures have been implemented by the Executive Director and the Board of Directors and reconciliations and reports...

Management feels that further segregation of duties is not practical with the limited number of personnel utilized in the accounting function. Additional oversight and monthly review procedures have been implemented by the Executive Director and the Board of Directors and reconciliations and reports are closely reviewed.

View Audit 31304

Corrective Action Plans

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