Corrective Action Plans

Finding 2022-004: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Plan to Correct: If we are to receive federal funding of this kind in the future we will insure the validity of any expense chosen after verifying against the standards set by the fund guidelines before...

Finding 2022-004: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Plan to Correct: If we are to receive federal funding of this kind in the future we will insure the validity of any expense chosen after verifying against the standards set by the fund guidelines before expenditures are made or any reporting is completed. Internal staff will also review work papers in detail to double check data integrity to ensure reporting is accurate. We will work with our CPA firm or other appropriate consultant if we have any questions surrounding expenses chosen. Responsible Party: Denise Doucette, CFO/VP Estimated Completion: Ongoing.

View Audit 47452

Finding 49970 (2022-003)

Significant Deficiency 2022

Moore Center Service, Inc.

NH

Allowable Costs / Cost Principles Eligibility Period of Performance

Finding 2022-003: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Plan to Correct: If we are to receive federal funding of this kind in the future we will insure the validity of any expense chosen after verifying against the standards set by the fund guidelines before...

Finding 2022-003: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Plan to Correct: If we are to receive federal funding of this kind in the future we will insure the validity of any expense chosen after verifying against the standards set by the fund guidelines before expenditures are made or any reporting is completed. Internal staff will also review work papers in detail to double check data integrity to ensure reporting is accurate. We will work with our CPA firm or other appropriate consultant if we have any questions surrounding expenses chosen. Responsible Party: Denise Doucette, CFO/VP Estimated Completion: Ongoing.

View Audit 47452

Finding 49969 (2022-002)

Significant Deficiency 2022

Moore Center Service, Inc.

NH

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Finding 2022-002: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Plan to Correct: The Agency understands and agrees with the audit interpretation of this finding. The Agency in good faith, started the process of receiving bids for the HVAC project, entered into the c...

Finding 2022-002: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Plan to Correct: The Agency understands and agrees with the audit interpretation of this finding. The Agency in good faith, started the process of receiving bids for the HVAC project, entered into the contract, and committed funds to the project, using the guidance available at the time of the project commitment. This project was part of the Agency?s initiative to prevent, prepare for, and respond to coronavirus and accordingly, the Provider Relief Fund grants were used to help fund this initiative. The Agency committed to this project with understanding from the July 2021 FAQ which allowed projects not in the Reporting Entity's possession to be counted toward funding. The FAQ was updated in August of 2021 changing the status to needing to be fully completed. The Agency learned of the change too late to stop the project as management and the board had fully approved the project. The plans were done, equipment ordered, orders delayed due to supply chain issues, labor shortages, etc., were obstacles for the project to not be fully completed earlier. We decided to go forward with the project because of the incredibly positive outcome it would bring to our organization in relation to coronavirus. If we are awarded federal funds in the future we will consult with our CPA firm or other appropriate consultant as necessary prior to committing to such a large, costly, and timeconsuming project. Management acknowledges that the guidance changed and will work with HRSA to come up with a plan regarding this situation. Responsible Party: Denise Doucette, CFO/VP Estimated Completion: Ongoing.

View Audit 47452 Questioned Costs: $1

Finding 49968 (2022-001)

Material Weakness 2022

C.s. Lewis Academy

UT

Material Weakness Reporting Matching / Level of Effort / Earmarking

Finding 2022-001 Finding Summary: C.S. Lewis Academy is required to submit annual financial statements and the proposed budget to the USDA. These items were not provided to the USDA by June 30, 2022. Responsible Individuals: Diane Nelson, Executive Director and Nate Adams, Business Manager Co...

Finding 2022-001 Finding Summary: C.S. Lewis Academy is required to submit annual financial statements and the proposed budget to the USDA. These items were not provided to the USDA by June 30, 2022. Responsible Individuals: Diane Nelson, Executive Director and Nate Adams, Business Manager Corrective Action Plan: Management will provide a copy of the audited financial statements and copy of the proposed budget to USDA annually. Anticipated Completion Date: Ongoing Anticipated Completion Date: Management will ensure all necessary corrective action plan items are in place by the end of 2022.

View Audit 43577

Finding 49961 (2022-001)

None 2022

Town of Winthrop, Maine

ME

Matching / Level of Effort / Earmarking

Management response/corrective action plan: We will take the auditors' recommendations under advisement and implement procedures accordingly.

View Audit 43571

Finding 49960 (2022-002)

None 2022

Town of Winthrop, Maine

ME

Management response/corrective action plan: We will take the auditors' recommendations under advisement and implement procedures accordingly.

View Audit 43571

Finding 49959 (2022-006)

Material Weakness 2022

Maricopa County Regional School District No. 509

AZ

Questioned Costs Equipment & Real Property Management Internal Control / Segregation of Duties

Type of Finding: Noncompliance, material weakness Repeat Finding: No Condition/Context: The District spent $52,380 of federal funding on equipment and services related to the Maricopa County Juvenile Detention Center. These expenditures were not authorized within the budget for the related grant as ...

Type of Finding: Noncompliance, material weakness Repeat Finding: No Condition/Context: The District spent $52,380 of federal funding on equipment and services related to the Maricopa County Juvenile Detention Center. These expenditures were not authorized within the budget for the related grant as the Juvenile Detention Center is a separate entity from the District. Action planned in response to finding: The District will establish proper internal controls over processing expenditures to ensure that only those expenditures that are allowed and approved within the budget be spent out of grant funds. Planned completion date for corrective action plan: For the period ending June 30, 2023. Name of the contact person responsible for corrective action: Adrian De Alba, Assistant Superintendent of Instruction and Student Services and Bonnie Romo, Financial Services Coordinator.

View Audit 47934 Questioned Costs: $1

Finding 49956 (2022-003)

Significant Deficiency 2022

Population Services International

DC

Subrecipient Monitoring § 200.303

2022-003 Internal Control over Compliance with Subrecipient Monitoring Requirements Contact: Karen Conley Title: Director, Grants & Contracts, Program Ethics Phone Number: 202-549-8388 Estimated Completion Date ? ongoing ...

2022-003 Internal Control over Compliance with Subrecipient Monitoring Requirements Contact: Karen Conley Title: Director, Grants & Contracts, Program Ethics Phone Number: 202-549-8388 Estimated Completion Date ? ongoing Corrective Action Grants and Contracts will work closely with the Program Management teams to remind non-US subrecipient organizations of the US government funding requirements included in their sub agreements and their need to comply with the annual audit certification letters. Following a departmental re-organization, the Subaward Compliance Unit in the Grants and Contracts Department will focus on strengthening PSI?s SR monitoring process.

View Audit 46560

Finding 49953 (2022-006)

Significant Deficiency 2022

Population Services International

DC

Questioned Costs Subrecipient Monitoring Period of Performance

2022-006 Internal Controls over Compliance and Compliance with the Period of Performance Compliance Requirement Contact: Chris Holmes Title: Controller Phone Number: 202-235-1938 Estimated Completion Date ? done ...

2022-006 Internal Controls over Compliance and Compliance with the Period of Performance Compliance Requirement Contact: Chris Holmes Title: Controller Phone Number: 202-235-1938 Estimated Completion Date ? done Corrective Action The results of the 2022 audit will be shared with appropriate staff and reiterated in training to ensure that adequate attention and guidance is provided on the allowability of trailing costs and the unallowability of newly incurred costs. From 2023, PSI will resume delivering in person training to its global finance and program staff.

View Audit 46560 Questioned Costs: $1

Finding 49951 (2022-004)

Significant Deficiency 2022

Population Services International

DC

Cash Management

2022-004 Internal Control over Compliance and Compliance with Cash Management Requirements Contact: Chris Holmes Title: Controller Phone Number: 202-235-1938 Estimated Completion Date ? ongoing ...

2022-004 Internal Control over Compliance and Compliance with Cash Management Requirements Contact: Chris Holmes Title: Controller Phone Number: 202-235-1938 Estimated Completion Date ? ongoing Corrective Action PSI is refining its method for calculating drawdowns on federal awards that are near the end of the period of performance dates. For such awards, the Accounts Receivable team in Washington will work with the Program Management Teams to obtain specific projections of trailing costs from country offices.

View Audit 46560

Finding 49946 (2022-002)

Significant Deficiency 2022

Population Services International

DC

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Reporting

2022-002 Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Contact: Chris Holmes Title: Controller Phone Number: 202-235-1938 Estimated Completion Date ? ongoing ...

2022-002 Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Contact: Chris Holmes Title: Controller Phone Number: 202-235-1938 Estimated Completion Date ? ongoing Corrective Action In late June 2023, PSI will offer its first in-person finance training since the onset of COVID. The common issues identified in this audit will be covered in that training, including: running suspension and debarment checks in a timely manner, retaining sufficient supporting documentation for expenses, following contract terms or modifying contract terms in writing as necessary, tracking VAT refunds appropriately, recording expenses in the proper period.

View Audit 46560

Finding 49942 (2022-002)

Significant Deficiency 2022

San Juan College

NM

Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking

Management agrees with this finding to meet compliance with the 45 day return of Title IV funds. ? Financial Aid is running a weekly report to capture all students that have dropped/withdrawn from classes. At the end of the semester (fall, spring or summer), a report is run to identify withdrawals, ...

Management agrees with this finding to meet compliance with the 45 day return of Title IV funds. ? Financial Aid is running a weekly report to capture all students that have dropped/withdrawn from classes. At the end of the semester (fall, spring or summer), a report is run to identify withdrawals, failed, or incomplete grades to determine if a return of funds calculation is warranted. This became important with the impact of COVID-19 on students which caused disruptions and difficulty in managing course loads. Financial Aid processes had a built in assumption that failed grades were unearned but, in reviewing and updating our processes most failed grades are actually earned. The return of funds has traditionally been calculated with the assumption the student did not earn the failed grade so the mid-point of the term was used for last date of attendance. Financial Aid is updating processes based on actuals and will continue working with Learning on the most efficient methodology to determine if a student has earned a failed grade or has stopped attending during the semester. ? Financial Aid will generate a weekly report to identify student withdrawals utilizing a new reporting tool being implemented late 2021. With the enhanced reporting tool and changes in methodology and process?s, we fully anticipate the return of funds will be calculated and remitted to the Department of Education within the required time. ? The Financial Aid Office has communicated with the Vice-President of Learning about the necessity for proper reporting by faculty with regards to non-attendance reporting and last date of attendance. ? Timeline: Management has already implemented the corrective actions. ? Mindi Schrum, Sr. Director and/or Greg Gallegos, Assistant Director will oversee the implementation of these.

View Audit 43710

Finding 49941 (2022-001)

None 2022

Gran Signora Development Corporation

OH

Questioned Costs HUD Housing Programs

Management agrees with the finding and will reimburse the project for overpaid management fees.

View Audit 42948 Questioned Costs: $1

Finding 49940 (2022-004)

Significant Deficiency 2022

Aims College District

CO

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Educational Stabilization Fund ? Assistance Listing No. 84.425F ? Higher Education Emergency Relief Fund Institutional Portion Recommendation: We recommend the College review its existing policies around calculating it's MTDC and recording capital expenditures to ensure it is up to date with federa...

Educational Stabilization Fund ? Assistance Listing No. 84.425F ? Higher Education Emergency Relief Fund Institutional Portion Recommendation: We recommend the College review its existing policies around calculating it's MTDC and recording capital expenditures to ensure it is up to date with federal regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management agrees with the recommended action. The College will update current policies and procedures to identify expenditures excluded from MTDC and develop a more robust review of the MTDC calculation. Name(s) of the contact person(s) responsible for corrective action: Kailey Block, CPA, Assistant Vice President of Administrative Services/Controller Planned completion date for corrective action plan: June 30, 2023

View Audit 42947 Questioned Costs: $1

Finding 49939 (2022-003)

Significant Deficiency 2022

Aims College District

CO

Procurement, Suspension & Debarment

Educational Stabilization Fund ? Assistance Listing No. 84.425F ? Higher Education Emergency Relief Fund Institutional Portion Recommendation: We recommend management adopt a policy to ensure evidence of compliance to suspension and debarment regulations are maintained. This can include maintaining...

Educational Stabilization Fund ? Assistance Listing No. 84.425F ? Higher Education Emergency Relief Fund Institutional Portion Recommendation: We recommend management adopt a policy to ensure evidence of compliance to suspension and debarment regulations are maintained. This can include maintaining evidence that management reviewed the GSA website, maintaining a certification from the vendor, or including a clause in a contract with vendors that they are not suspended or debarred. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management agrees with the recommended action. The College will update current policies and procedures to include suspension and debarment regulations and develop a tracking mechanism for the review of the GSA website and certification of vendors. Educational Stabilization Fund ? Assistance Listing No. 84.425F ? Higher Education Emergency Relief Fund Institutional Portion (Continued) Name(s) of the contact person(s) responsible for corrective action: Kailey Block, CPA, Assistant Vice President of Administrative Services/Controller Planned completion date for corrective action plan: June 30, 2023

View Audit 42947

Finding 49938 (2022-002)

Significant Deficiency 2022

Aims College District

CO

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Educational Stabilization Fund ? Assistance Listing No. 84.425F ? Higher Education Emergency Relief Fund Institutional Portion Recommendation: We recommend the College review its existing procurement policies to ensure it is up to date with federal regulations. Explanation of disagreement with aud...

Educational Stabilization Fund ? Assistance Listing No. 84.425F ? Higher Education Emergency Relief Fund Institutional Portion Recommendation: We recommend the College review its existing procurement policies to ensure it is up to date with federal regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management agrees with the recommended action. The College will review the existing procurement policies and procedures and include standards that align with federal procurement regulations and standards. Name(s) of the contact person(s) responsible for corrective action: Kailey Block, CPA, Assistant Vice President of Administrative Services/Controller Planned completion date for corrective action plan: June 30, 2023

View Audit 42947

Finding 49933 (2022-004)

Significant Deficiency 2022

Montgomery County, North Carolina

NC

Reporting Cash Management

Corrective Action: All staff involved in the receipting of these special type of revenues will receive extensive training to understand when to record unearned revenue. Workers will be required to attend and sign a memorandum of understanding after training completion. Proper monitoring by superviso...

Corrective Action: All staff involved in the receipting of these special type of revenues will receive extensive training to understand when to record unearned revenue. Workers will be required to attend and sign a memorandum of understanding after training completion. Proper monitoring by supervisors and the administrative officer of reimbursement programs will occur weekly over timesheets to ensure the timesheets include all time coded on the daysheets.

View Audit 42580

Finding 49929 (2022-002)

Significant Deficiency 2022

Home Opportunities Made Easy, Inc.

IA

Special Tests & Provisions Subrecipient Monitoring Cash Management

Condition: During our testing of special tests and provisions, we noted multiple payments to subrecipients that were not made within 30 days. Recommendation: A system needs to be put into place to track when payment requests are made to ensure payments to subrecipients can be made timely. Current ...

Condition: During our testing of special tests and provisions, we noted multiple payments to subrecipients that were not made within 30 days. Recommendation: A system needs to be put into place to track when payment requests are made to ensure payments to subrecipients can be made timely. Current Status: After completion of the prior year audit, Management developed a procedure and tracking system for the submission of payment requests from our subrecipients and reimbursement payments to the subrecipients to ensure payments are made within 30 days of the receipt of the request. This finding has been repeated as 2022-002. Due to the timing of the completion of the prior year audit, the findings identified in the current audit occurred before implementation of the prior year?s corrective action plans.

View Audit 42943

Finding 49926 (2022-001)

Significant Deficiency 2022

Home Opportunities Made Easy, Inc.

IA

Reporting Internal Control / Segregation of Duties

Condition: During our audit, material adjustments were needed to correct the recording of various revenue accounts related to government grants and related receivables. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the...

Condition: During our audit, material adjustments were needed to correct the recording of various revenue accounts related to government grants and related receivables. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Current Status: After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. This finding has been repeated as 2022-001. In addition to continuing the reconciliation processes previously implemented, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.

View Audit 42943

Finding 49920 (2022-002)

Significant Deficiency 2022

Murphy Elementary School District No. 21

AZ

Special Tests & Provisions Significant Deficiency

Finding Number: 2022-002 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 425U Contact Person: Florence Brown, Grants Coordinator Anticipated Completion Date: January 9, 2023 Planned Corrective Action: Before awarding a contract to a contract...

Finding Number: 2022-002 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 425U Contact Person: Florence Brown, Grants Coordinator Anticipated Completion Date: January 9, 2023 Planned Corrective Action: Before awarding a contract to a contractor/subcontractor the Maintenance Coordinator will request for the contractor/subcontractor to indicate in writing that they will follow the Davis Bacon Act and that they will be providing certified payrolls that meet the specific requirements on a weekly basis.

View Audit 42172

Finding 49919 (2022-001)

Material Weakness 2022

Murphy Elementary School District No. 21

AZ

Questioned Costs Allowable Costs / Cost Principles Material Weakness

Finding Number: 2022-001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D Contact Person: Sarah Manobe, Payroll Specialist Anticipated Completion Date: January 9, 2023 Planned Corrective Action: Separation of duties has been established. We hi...

Finding Number: 2022-001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D Contact Person: Sarah Manobe, Payroll Specialist Anticipated Completion Date: January 9, 2023 Planned Corrective Action: Separation of duties has been established. We hired a payroll person that will be fully dedicated to conducting the duties of processing payroll from start to end. We also hired a full-time Human Resource Manager that will be responsible for conducting all other functions of the Human Resource department, this will ensure to have better internal controls.

View Audit 42172 Questioned Costs: $1

Finding 49915 (2022-001)

Material Weakness 2022

Wellpinit School District No. 49

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

The District will ensure compliance with wage rate requirements going forward. The District will ensure that contracts have the language in it going forward.

View Audit 42248

Finding 49913 (2022-101)

Significant Deficiency 2022

North Country Healthcare, Inc.

AZ

Special Tests & Provisions

2022-101 Special Tests and Provisions - Sliding Fee Scale Discounts Recommendation: To help ensure that sliding fee discounts are properly calculated and documented, the Center should adhere to its formal written policies and procedures, and conduct random reviews of sliding fee scale applications i...

2022-101 Special Tests and Provisions - Sliding Fee Scale Discounts Recommendation: To help ensure that sliding fee discounts are properly calculated and documented, the Center should adhere to its formal written policies and procedures, and conduct random reviews of sliding fee scale applications in order to detect and correct errors or incomplete applications on a timely manner. Action Taken: The Center concurs and has implemented the recommendation. Completion Date: June 30, 2023

View Audit 42622

Corrective Action Plans

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