Corrective Action Plans

Finding 28685 (2022-003)

Significant Deficiency 2022

CA

Reporting Significant Deficiency

The management of Indian Wells Valley Airport District will be keeping closer supervision of the financials that are provided by outside accounting, and in making sure that all accounts are reported properly. The District is in the process of finding a new accounting firm to handle the District?s mo...

The management of Indian Wells Valley Airport District will be keeping closer supervision of the financials that are provided by outside accounting, and in making sure that all accounts are reported properly. The District is in the process of finding a new accounting firm to handle the District?s monthly financial reports and general ledger.

View Audit 28793

Finding 28684 (2022-002)

Significant Deficiency 2022

Indain Wells Valley Airport District

CA

Significant Deficiency

The management of Indian Wells Valley Airport District will be keeping closer supervision of the financials that are provided by outside accounting, and in making sure that all accounts are reported properly. The District is in the process of finding a new accounting firm to handle the District?s mo...

The management of Indian Wells Valley Airport District will be keeping closer supervision of the financials that are provided by outside accounting, and in making sure that all accounts are reported properly. The District is in the process of finding a new accounting firm to handle the District?s monthly financial reports and general ledger.

View Audit 28793

Finding 28683 (2022-001)

Material Weakness 2022

Indain Wells Valley Airport District

CA

Material Weakness Internal Control / Segregation of Duties

Financial duties are segregated to the extent fiscally possible at the District. Because of the small size of the staff, the District acknowledges the lack of segregation of duties, but notes that with the limited available staff that it is comfortable with the controls as presently operating.

View Audit 28793

Finding 28682 (2022-002)

Significant Deficiency 2022

Black Hawk County

IA

Procurement, Suspension & Debarment

Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: March 2021 through Decem...

Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: March 2021 through December 2024 2022-002 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Recommendation: We recommend management ensure county policies are followed and documentation of the check for suspended and debarred vendors for any contract charged to the federal program is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will continue to work to ensure County policies and federal grant requirements are followed and specifically, that documentation is retained for compliance with vendor suspension and debarment requirements. Name of the contact person responsible for corrective action: Michelle Weidner, Finance Director. Planned completion date for corrective action plan: June 30, 2023

View Audit 28179

Finding 28679 (2022-001)

Significant Deficiency 2022

West Hardin County Cisd

TX

Internal Control / Segregation of Duties

Finding 2022-01 - Segregation of Duties Condition: Due to the limited number of personnel, a segregation of certain accounting functions was not possible. Criteria: The District continues to establish procedures that would ensure proper segregation of certain accounting functions, especially, to lim...

Finding 2022-01 - Segregation of Duties Condition: Due to the limited number of personnel, a segregation of certain accounting functions was not possible. Criteria: The District continues to establish procedures that would ensure proper segregation of certain accounting functions, especially, to limit the functions of recording, authorizing and custody. Effect: As a result, during the audit period, operation of procedures might not have allowed management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. Cause: The District has limited resources and personnel in the responsibilities and business function. Recommendation: We recommend that the Board of Trustees continue to monitor the internal accounting control procedures in use to assure that compensating controls are being utilized to provide assurance that assets are safeguarded and transactions are proper and recorded in a timely manner. These actions would mitigate, but not eliminate the risk of misstatement or misappropriation. Response: The Board of Trustees will continue to be an active participant in the internal control with a supervisory and review function for the financial management.

View Audit 27833

Finding 28678 (2022-001)

Significant Deficiency 2022

Brazos Valley Food Bank, Inc.

TX

Equipment & Real Property Management

Planned Corrective Action: ?BVFB will continue to complete at least two (2) full Physical Inventory Counts each year, at the beginning of the fiscal year in July, and at the end of the calendar year in December. The overall Physical Inventory Process is currently overseen by Ebony Knight, Operation...

Planned Corrective Action: ?BVFB will continue to complete at least two (2) full Physical Inventory Counts each year, at the beginning of the fiscal year in July, and at the end of the calendar year in December. The overall Physical Inventory Process is currently overseen by Ebony Knight, Operations Director, with documented counts completed and documented in pairs of warehouse staff, supervised by BVFB?s Distribution Manager, Tyler Foley. The Operations Director reviews manual counts against current inventory listings, with discrepancies requiring recounts by warehouse staff. Variances are corrected in BVFB?s inventory system by the Operations Director, with assistance from the Finance Team. Variance reports are provided to the Executive Director after each full inventory. oDue Date: Current practice that will continue. ? As BVFB?s inventory becomes more varied and complex, BVFB sees the need for a paid position dedicated to Food Purchase & Inventory at BVFB. A job description is being developed, funds are in the current annual budget and recruitment is to begin. oDue Date: Hire made for this position by June 30, 2023. ?Manual product category inventory checks, with special emphasis on TEFAP products, will be performed monthly. The Operations Director, Ebony Knight, will oversee this process until a Logistics Manager is hired. At the completion of each month, warehouse staff will manually count designated product categories. The Operations Director/Logistics Manager will cross reference manual counts with the Inventory Transaction Report (ITR) run from BVFB?s inventory management system. BVFB?s Operations Director then reconciles any discrepancies in BVFB?s inventory system. oDue Date: Implemented January 2023. ?BVFB?s Distribution Manager, Tyler Foley, provided training to all warehouse staff on specific procedures for 1) accurately reporting damaged/lost product, including required documentation when a discrepancy is identified. Damaged/lost product should be reported to the Logistics Manager (currently being filled by the Operations Director) during the receiving process and to the Distribution Manager during the distribution process. oDue Date: First training occurred 1/17/2023. Subsequent training for new employees or new hires done by the new Logistics Manager will happen as need. ?BVFB has funds to purchase and install a Barcoding Inventory System in its warehouses. Barcoding reduces the risk of human error, which can result in miscalculations, oversights and lost inventory. oDue Date: January 2024 Name of Contact Person: Ebony Knight, Operations Director ebonyk@bvfb.org 979-779-3664, Ext. 108

View Audit 27986

Finding 28675 (2022-001)

Significant Deficiency 2022

Independent School District No. 284

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Significant Deficiency

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE ? U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER ? FEDERAL ALN 84.027 AND 84.173 2022-001 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Findin...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE ? U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER ? FEDERAL ALN 84.027 AND 84.173 2022-001 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary 2 CFR ? 180 requires Independent School District No. 284 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements applicable to the special education cluster federal program. The District did not have sufficient controls in place within its special education cluster federal program to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Corrective Action Plan Actions Planned ? The District will review policies and procedures relating to suspension and debarment for its federal programs and will ensure that all parties with which it contracts for goods or services are eligible to participate in contracts involving the expenditures of federal program funding. Official Responsible ? The District?s Controller, Jill Schwint. Planned Completion Date ? June 30, 2023 Disagreement With or Explanation of Finding ? The District agrees with this finding. Plan to Monitor ? The District?s Controller, Jill Schwint, will ensure appropriate controls are in place to verify that any vendor with which the District contracts for federal program goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.

View Audit 28663

Finding 28662 (2022-001)

Significant Deficiency 2022

Northern Illinois Food Bank

IL

Subrecipient Monitoring § 200.332

Finding Number: 2022-001 Condition: It was noted through testing that there were multiple agencies where a monitoring visit had not taken place within the last two years per the Food Bank's subrecipient monitoring policy. Planned Corrective Action: The Director, Compliance Manager, and three (3) Are...

Finding Number: 2022-001 Condition: It was noted through testing that there were multiple agencies where a monitoring visit had not taken place within the last two years per the Food Bank's subrecipient monitoring policy. Planned Corrective Action: The Director, Compliance Manager, and three (3) Area Leaders of the Agency Team maintain a schedule of due site monitors. During COVID there were extensive site closings and reduced hours thus impeding the ability to maintain the schedule. In order to maintain a safe work environment, it was necessary to reduce visits during peak periods of the pandemic. This was a unique and short-term issue. Each team member has a goal of conducting weekly monitors in order to complete the overdue monitor site visits by June 30, 2023. Monitors will be prioritized of oldest to newest until caught up with the schedule. Area Leaders will continue conducting site monitors with agencies prior to their upcoming due dates. Contact person responsible for corrective action: Persons responsible for enacting this corrective action plan include Director of Agency Relations Jacqui Hebein, contact jhebein@northernilfoodbank.org, or Compliance and Member Insights Manager Mackenzie Peshek, contact mpeshek@northernilfoodbank.org, (630) 443-6910 ext. 278. Anticipated Completion Date: 06/30/2023

View Audit 27694

Finding 28661 (2022-004)

Significant Deficiency 2022

Independent School District No. 196

MN

Allowable Costs / Cost Principles Significant Deficiency

2022-004 Significant Deficiency in Internal Control Over Compliance and Compliance Finding Recommendation: We recommend that the District reviews its procedures and controls over time and effort documentation for wages charged to Federal programs to ensure all documentation accurately reflects the w...

2022-004 Significant Deficiency in Internal Control Over Compliance and Compliance Finding Recommendation: We recommend that the District reviews its procedures and controls over time and effort documentation for wages charged to Federal programs to ensure all documentation accurately reflects the work performed and that the time and effort documentation agrees with how the employee?s wages are allocated to the grant in the finance system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will work to revise its procedures as necessary to ensure that all time and effort documentation is properly retained, reviewed, and incorporated into the official payroll records of the District. Name(s) of the contact person(s) responsible for corrective action: Christopher Onyango-Robshaw, Coordinator of Finance. Planned completion date for corrective action plan: June 30, 2023

View Audit 27594

Finding 28658 (2022-003)

Significant Deficiency 2022

Independent School District No. 196

MN

Allowable Costs / Cost Principles Significant Deficiency

2022-003 Significant Deficiency in Internal Control Over Compliance and Compliance Finding Recommendation: We recommend that the District reviews its procedures and controls over time and effort documentation for wages charged to Federal programs to ensure all documentation accurately reflects the w...

2022-003 Significant Deficiency in Internal Control Over Compliance and Compliance Finding Recommendation: We recommend that the District reviews its procedures and controls over time and effort documentation for wages charged to Federal programs to ensure all documentation accurately reflects the work performed and that the time and effort documentation agrees with how the employee?s wages are allocated to the grant in the finance system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will work to revise its procedures as necessary to ensure that all time and effort documentation is properly retained, reviewed, and incorporated into the official payroll records of the District. Name(s) of the contact person(s) responsible for corrective action: Christopher Onyango-Robshaw, Coordinator of Finance. Planned completion date for corrective action plan: June 30, 2023

View Audit 27594

Finding 28647 (2022-002)

Material Weakness 2022

Independent School District No. 196

MN

Procurement, Suspension & Debarment

2022-002 Material Weakness in Internal Control Over Compliance and Compliance Finding Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered i...

2022-002 Material Weakness in Internal Control Over Compliance and Compliance Finding Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will immediately implement procedures to document all suspension and debarment checks completed for covered transactions charged to federal programs. Name(s) of the contact person(s) responsible for corrective action: Christopher Onyango-Robshaw, Coordinator of Finance. Planned completion date for corrective action plan: June 30, 2023

View Audit 27594

Finding 28646 (2022-001)

Material Weakness 2022

Independent School District No. 196

MN

Questioned Costs Procurement, Suspension & Debarment

2022-001 Material Weakness in Internal Control Over Compliance and Compliance Finding Recommendation: We recommend the District reviews its procurement policies and procedures to ensure that the proper procurement methods as prescribed in the Uniform Guidance are utilized for all transactions which ...

2022-001 Material Weakness in Internal Control Over Compliance and Compliance Finding Recommendation: We recommend the District reviews its procurement policies and procedures to ensure that the proper procurement methods as prescribed in the Uniform Guidance are utilized for all transactions which utilize federal funds. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will work to revise its procedures as necessary to ensure that all procurements which are charged to federal programs are fully documented, including support for noncompetitive proposals. Name(s) of the contact person(s) responsible for corrective action: Christopher Onyango-Robshaw, Coordinator of Finance. Planned completion date for corrective action plan: June 30, 2023

View Audit 27594 Questioned Costs: $1

Finding 28642 (2022-001)

Significant Deficiency 2022

Near North Health Service Corporation

IL

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency

2022-001, Health Center Program Cluster ? Special Tests and Provisions ? Sliding Fee Discounts: In a sample of tested encounters, patient information was inadequate to determine whether the proper sliding fee was applied. Anticipated completion date - December 31, 2022, Responsible contact person f...

2022-001, Health Center Program Cluster ? Special Tests and Provisions ? Sliding Fee Discounts: In a sample of tested encounters, patient information was inadequate to determine whether the proper sliding fee was applied. Anticipated completion date - December 31, 2022, Responsible contact person for planned corrective action - Ellen King, CFO

View Audit 27585

Finding 28640 (2022-002)

Material Weakness 2022

Chaney-Monge School District No. 88

IL

Reporting

Condition: Quarterly expenditure reports tested were not submitted to ISBE by the report due dates. Plan: Management will review and submit the reports within the required period going forward.

View Audit 28382

Finding 28631 (2022-001)

Significant Deficiency 2022

Spartanburg County, South Carolina

SC

Internal Control / Segregation of Duties Reporting Significant Deficiency

CORRECTIVE ACTION PLAN Spartanburg County, South Carolina respectively submits the following corrective action plan for the year ended June 30, 2022: Name and address of independent accounting firm: Halliday, Schwartz & Co. 824 East Main St. Spartanburg, SC 29302 Audit period: June 30, 2022 The find...

CORRECTIVE ACTION PLAN Spartanburg County, South Carolina respectively submits the following corrective action plan for the year ended June 30, 2022: Name and address of independent accounting firm: Halliday, Schwartz & Co. 824 East Main St. Spartanburg, SC 29302 Audit period: June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section III: Federal Awards Findings Finding 2022-001: US Department of Treasury Emergency Rental Assistance Program CFDA Number: 21.023 Grant Award Number : Multiple Awards Compliance Requirement: Allowable Costs Type of Finding: Significant deficiency in internal control over compliance Criteria: In the US Department of Treasury Reporting Guidance - Emergency Rental Assistance Program, page 34, it requires recipients to provide a current performance narrative of 2,000 words or less describing the performance and accomplishments of the subject ERA project over the reporting period (which is quarterly). The narrative must include the following information: ? Activities implemented and notable achievements over the calendar quarter ? Activities planned for next quarter ? Notable challenges and status of each challenge ? Details on compliance/non-compliance issues and mitigation plans ? Requests for additional assistance or guidance from Treasury ? Other information, as appropriate. Condition: While the County complied with all other aspects of reporting for the program, the County did not comply with the performance reporting requirement noted above. This section of the quarterly reports submitted to Treasury were marked "N/A", and therefore lacked the required elements as listed above. Questioned Costs: None Context: As this is a new federal program (this is the second reporting year), the guidance from Treasury changed often. We observed that efforts were made to comply with reporting requirements, and this appeared to be an oversight. The quarterly reports were accepted by Treasury, with no further follow-up from them. Effect or Potential Effect: The effect of the noncompliance noted above is that it increases risk for action by the federal agency for contract noncompliance. Cause: Misunderstanding of grant contract performance reporting requirement. Recommendation: We recommend that the responsible report preparer create a template with the required reporting elements for the narrative portion. Each quarter the template can be updated with the appropriate wording, as required. In the User Guide - Treasury's Portal for Recipient Reporting, page 54, it suggests typing the information directly on screen or upload a document via the "upload fi les" functionality on the website. We recommend this process begin with the first quarterly report filed in 2023, since all previously filed reports were accepted online and cannot be changed. Planned Implementation Date of Corrective Action: January, 2023 Person Responsible for Corrective Action: Kathy Rivers, Director of Community Development

View Audit 27681

Finding 28620 (2022-001)

Significant Deficiency 2022

Northern Oswego County Health Services, Inc. Dba Connextcare

NY

Subrecipient Monitoring Eligibility HUD Housing Programs

CORRECTIVE ACTION PLAN July 27, 2023 United Stated Department of Health and Human Services Northern Oswego County Health Services, Inc. d/b/a ConnextCare respectfully submits the following corrective action plan for the year ended December 31, 2022. Cohn Reznick LLP 350 Church Street Hartford, CT 06...

CORRECTIVE ACTION PLAN July 27, 2023 United Stated Department of Health and Human Services Northern Oswego County Health Services, Inc. d/b/a ConnextCare respectfully submits the following corrective action plan for the year ended December 31, 2022. Cohn Reznick LLP 350 Church Street Hartford, CT 06103 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. FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS SIGNIFICANT DEFICIENCY 2022-001 - Sliding Fee Scale Discount Recommendation The Center should establish a system of internal controls to ensure that all sliding fee discounts are properly calculated based on family size and income. Action Taken ConnextCare as established the following system of internal controls, effective immediately: 1) Monthly internal audits of new patient records being entered into our practice management system. This review will ensure the proper character (U) is entered into the Sliding Fee Scale tab. 2) Review of accounts when new Income Verification forms are received from the patients to ensure that reported income aligns with the practice management system. In addition, perform monthly audits of 25 active Sliding Fee Scale patients for proper Slide percentage and calculation. 3) Additional training provided to all Patient Access Representatives, Medical and Dental Billing Staff on proper calculation of a self-pay eligible sliding fee scale patient. If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please call: Tracy Wimmer, CFO at (315) 298-6569, ext. 2020. Tracy Wimmer Sr. VP/Chief Financial Officer

View Audit 27998

Finding 28619 (2022-002)

None 2022

National Council for History Education, Inc.

OH

Cash Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.305

Planned Corrective Actions: The Organization will incorporate policies and procedures to ensure requests for reimbursement are in line with 2 CFR 200.305(b)(3). Anticipated Completion Date: The Organization expects these actions to be completed by June 30, 2023. Responsible Contact Person: Richa...

Planned Corrective Actions: The Organization will incorporate policies and procedures to ensure requests for reimbursement are in line with 2 CFR 200.305(b)(3). Anticipated Completion Date: The Organization expects these actions to be completed by June 30, 2023. Responsible Contact Person: Richard Bennoch, Finance Director

View Audit 27922

Finding 28618 (2022-002)

Significant Deficiency 2022

Family, Inc.

IA

Reporting Allowable Costs / Cost Principles Significant Deficiency

FAMILY, Inc. is now utilizing a payroll system that calculates payroll distributions automatically. FAMILY will only use automatic allocation methods, as manual methods are susceptible to human error and leave potential for misstatement of payroll expense in major program. Immediate actions include:...

FAMILY, Inc. is now utilizing a payroll system that calculates payroll distributions automatically. FAMILY will only use automatic allocation methods, as manual methods are susceptible to human error and leave potential for misstatement of payroll expense in major program. Immediate actions include:- Payroll companies will be selected based on their ability to allocate payroll at the grant level; no company that cannot automatically perform this distribution will be employed in the future. - Payroll allocations will be reviewed on a regular basis as entered into the payroll system for each employee. These allocations will be regularly compared to budgeted payroll amounts per grant and actual hours worked per payroll reports. - Payroll will be reviewed prior to submission for payment for each pay period. This review will include the review of payroll distributions. Party Responsible for Implementation: Stacy Giebler, Finance Director Signed: Kimberly Kolakowski Executive Director March 17, 2023

View Audit 28049

Finding 28617 (2022-001)

Material Weakness 2022

Valor Christian College

OH

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Comments on Findings and Recommendations. Finding 2022-001 Valor Christian College concurs with the finding and recommendations in the finding. Actions Taken or Planned: Finding 2022-001 - The Valor Christian College Finance Department and the Valor Christian College CFO will increase controls over ...

Comments on Findings and Recommendations. Finding 2022-001 Valor Christian College concurs with the finding and recommendations in the finding. Actions Taken or Planned: Finding 2022-001 - The Valor Christian College Finance Department and the Valor Christian College CFO will increase controls over the process to ensure that no recruitment advertising expenses are attributed to CARES ACT funds. The amount of originally attributed to advertising expenses has been reallocated to allowable items/expenses.

View Audit 38149 Questioned Costs: $1

Finding 28616 (2022-001)

Material Weakness 2022

Youth Haven, Inc.

FL

Material Weakness Reporting Internal Control / Segregation of Duties

Shelter Grant; Foster Care Title IV-E Youth Haven, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 ? June 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbere...

Shelter Grant; Foster Care Title IV-E Youth Haven, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 ? June 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2022-001 Material Weakness in Internal Control Over Financial Reporting Recommendation: We recommend the Organization develop internal control policies to ensure preparation of financial statements and related disclosures in accordance with accounting principles generally accepted in the United States of America. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Implemented new review process. All schedules to be completed by OAF (Outsourced Accounting Firm) Accountant and reviewed by Youth Haven Inc. Finance Manager or OAF Senior Accountant. Name(s) of the contact person(s) responsible for corrective action: Linda Goldfield Planned completion date for corrective action plan: 07/31/2022.

View Audit 33876

Finding 28614 (2022-001)

Material Weakness 2022

City of Whittier

CA

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles

I. FINANCIAL STATEMENT FINDINGS None Reported II. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2022-001 Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds CFDA No.: 21.027 Federal Agency: U.S. Department of Treasury Passed-through: California State Water Boards Award Y...

I. FINANCIAL STATEMENT FINDINGS None Reported II. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2022-001 Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds CFDA No.: 21.027 Federal Agency: U.S. Department of Treasury Passed-through: California State Water Boards Award Year: 2021 Grant Award Number: CA1910173 Compliance Requirements: Reporting Management?s Response: We concur. Views of Responsible Officials and Corrective Action: As stated in the condition, the City has subsequently corrected the Project and Expenditure Report, beginning with the September 30, 2022 report. Immediately after the issuance of the FY2021 Single Audit Report, the City shifted our SLFRF funds spending approach and elected for the Standard Allowance. The Standard Allowance allows a local government to expend up to $10 million of its SLFRF funds in the Revenue Replacement category without having to demonstrate any actual lost revenue. The quarterly SLFRF reporting to Treasury is prepared and submitted through an online portal. The report is considered as a live document as it allows the City to amend projects previously stated and/or update total cumulative expenditures as needed. Due to the timing of the issuance of prior year Single Audit Report and our election of the Standard Allowance, the City could not amend reports previously submitted to Treasury. Name of Responsible Person: Alice Hui, Director of Finance Projected Implementation Date: October 30, 2022

View Audit 33736

Finding 28613 (2022-002)

Significant Deficiency 2022

Boyd Manor

LA

2022 ?2 Excessive Utility (Water) Bill Condition: A local water utility company has a recorded unpaid water bill in excess of $113,000 for the property. Criteria: The local utility company measures water usage each month and invoices the customer for that supposed usage. Cause: The cause of the exce...

2022 ?2 Excessive Utility (Water) Bill Condition: A local water utility company has a recorded unpaid water bill in excess of $113,000 for the property. Criteria: The local utility company measures water usage each month and invoices the customer for that supposed usage. Cause: The cause of the excessive water bill is undeterminable. Effect: Management is unable to pay a water bill in excess of $113,000 when the property?s usual water bill is approximately $2,000 each month. Recommendation: I recommend management continue to work with the local water utility company to get the bill adjusted to an appropriate amount or determine the cause for the excessive bill. Management Response: - This issue is ongoing. The local newspaper is full of stories of incorrect or conflict about the utility company. This is a local issue that should be addressed by the Chairman of the Board, as the property is located in his area and needs to be addressed at the highest level. This is not a problem that can be solved by the staff, it can only be solved by the Board.

View Audit 30876

Finding 28612 (2022-001)

Significant Deficiency 2022

Boyd Manor

LA

Questioned Costs

2022 ?1 Restricted Fund Usage Questioned Cost: $9,000 Condition: Management failed to utilize restricted funds for the purpose in which they were designated. Criteria: The management company expended $9,000 of funds restricted for use in furnishing tenant common areas and the management office, on d...

2022 ?1 Restricted Fund Usage Questioned Cost: $9,000 Condition: Management failed to utilize restricted funds for the purpose in which they were designated. Criteria: The management company expended $9,000 of funds restricted for use in furnishing tenant common areas and the management office, on daily operating expenses. Cause: Site managers did not expend funds for their intended use. Effect: Restricted funds were not spent appropriately and therefore, should be returned to donor. Recommendation: I recommend management comply with all donor restrictions. Management Response: - Initially the funds were not restricted. The funds were earned by the property because the property was used as a set for a movie. - The money did not come from the Board. The money was generated by the property and is considered to be other income. Given the financial needs of the property there was no way that funds could be set aside for the operations. The Debt owed to the Management Company as of 12/31/2022 was $59,401. Given the severe cash flow issues at the property all resources had to be directed to resolve the financial situation of Boyd Manor. The funds were used for the benefit of Boyd Manor. The management company was also owed $59,401.

View Audit 30876 Questioned Costs: $1

Finding 28611 (2022-001)

Material Weakness 2022

Peninsula School District No. 401

WA

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

Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal requirements for time-and-effort documentation. ...

Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal requirements for time-and-effort documentation. Name, address, and telephone of District contact person: Ashley Murphy (253) 530-1004 14015 62nd Avenue, Gig Harbor WA 98332 Corrective action the auditee plans to take in response to the finding: The District will implement controls to ensure time and effort documentation is maintained for all federal programs. New program staff will be trained regarding the time and effort requirements, including knowledge of which federal programs the time and effort requirement is applicable, frequency of documentation, and the importance of retention of time and effort documentation. Anticipated date to complete the corrective action: August 31, 2023

View Audit 32722

Finding 28610 (2022-002)

Material Weakness 2022

Peninsula School District No. 401

WA

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Finding ref number: 2022-002 Finding caption: The District did not have adequate internal controls for ensuring compliance with allowable activities and costs, procurement and restricted purpose requirements. Name, address, and telephone of District contact person: Kris Hagel (253) 530-3701 14015 62...

Finding ref number: 2022-002 Finding caption: The District did not have adequate internal controls for ensuring compliance with allowable activities and costs, procurement and restricted purpose requirements. Name, address, and telephone of District contact person: Kris Hagel (253) 530-3701 14015 62nd Avenue, Gig Harbor WA 98332 Corrective action the auditee plans to take in response to the finding: The District does not concur with the finding or questioned costs. SAO reviewed our inventory control system and reports which showed Kindergarten devices being checked out to the teachers instead of individual students. This was needed to ensure an additional level of accountability for devices for some of our youngest learners. In addition we did piggyback on a competitively bid contract to receive the most devices for the least cost. We are not in agreement that utilizing the contract for the devices did not meet the minimum federal requirements for procurement. The standard of documentation required by SAO to satisfy ?unmet? need would have been hard to meet even if the District hadn?t been in the midst of a pandemic. The District has internal controls over asset inventory and provided equipment only to students with unmet needs, and all costs were allowable, reasonable and necessary. We look forward to working with the FCC to resolve this finding and we appreciate the guidance that was provided by the FCC, as noted below. Guidance from the FCC Devices for remote learning could also be used at school. During the pandemic in Washington State we experienced times when classrooms, schools and or districts were closed by health department and state regulations because of outbreaks. Districts had to be prepared to support remote learning each day with constantly changing guidance on who was allowed to be in person. The following guidance from the Federal Communications Commission, titled ?Emergency Connectivity Fund Common Misconceptions?, ?Misconception #2: If schools have returned to in-class instruction for the upcoming school year, they are not eligible to participate. Answer: This is false. Equipment and services provided to students or school staff who would otherwise lack sufficient access to connected devices, and/or broadband internet access connection while off campus are eligible for Emergency Connectivity Fund Support.? From the Federal Communications Commission Order FCC-CIRC21-93-043021, question 77: ?We think schools are in the best position to determine whether their students and staff have devices and broadband services sufficient to meet their remote learning needs, and we recognize that they are making such decisions in the midst of a pandemic. We, therefore, will not impose any specific metrics or process requirements on those determinations.? And from question 53: ?. . . we are sensitive to the need to provide some flexibility during this uncertain time. If those connected devices were purchased for the purpose of providing students . . . with devices for off-campus use consistent with the rules we adopt today, we will not prohibit such on-campus use.? Anticipated date to complete the corrective action: August 31, 2023

View Audit 32722 Questioned Costs: $1

Corrective Action Plans

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