Corrective Action Plans

Finding 2285 (2022-002)

Significant Deficiency 2022

MA

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Management’s Corrective Action Plan Finding number: 2022-002 Federal agency: U.S. Department of Education Program: Student Financial Assistance Cluster Assistance Listing #’s 84.063, 84.268 Award year: 2022 Corrective Action Plan The BAC will augment last year’s monthly automation of ros...

Management’s Corrective Action Plan Finding number: 2022-002 Federal agency: U.S. Department of Education Program: Student Financial Assistance Cluster Assistance Listing #’s 84.063, 84.268 Award year: 2022 Corrective Action Plan The BAC will augment last year’s monthly automation of roster submission with a monthly reconciliation of enrolment status as recorded in our student information system with the data recorded in NSLDS. Management will provide training to those reasonable for reporting enrolment status to NSLDS via the National Student Clearinghouse. This training will include the relevant rules and regulations as well as stress the importance of accuracy and the potential consequences of errors, both to our students and the institution. Timeline for Implementation of Corrective Action Plan The College plans to implement the corrective action plan by October 1, 2023. Contact Person James Ryan, Ph.D. Vice President of Enrollment Management

View Audit 3923

Finding 2284 (2022-002)

Material Weakness 2022

Stand Down Housing Westerly, Inc.

RI

Questioned Costs HUD Housing Programs Allowable Costs / Cost Principles

The Organization will make the necessary required deposits to bring the balance of the reserve for replacement in alignment with requirements of Section 811 Capital Advance Program Regulatory Agreement and going forward we will make the required monthly deposits.

View Audit 3922 Questioned Costs: $1

Finding 2283 (2022-001)

Material Weakness 2022

Stand Down Housing Westerly, Inc.

RI

Internal Control / Segregation of Duties Reporting

The Organization will develop procedures to allow for greater segregation of duties over financial reporting or establish mitigating controls concerned with review and oversight.

View Audit 3922

Finding 2246 (2022-002)

Material Weakness 2022

Stand Down Housing Westerly, Inc.

RI

Questioned Costs HUD Housing Programs Allowable Costs / Cost Principles

The Organization will make the necessary required deposits to bring the balance of the reserve for replacement in alignment with requirements of Section 811 Capital Advance Program Regulatory Agreement and going forward we will make the required monthly deposits.

View Audit 3870 Questioned Costs: $1

Finding 2245 (2022-001)

Material Weakness 2022

Stand Down Housing Westerly, Inc.

RI

Internal Control / Segregation of Duties Reporting

The Organization will develop procedures to allow for greater segregation of duties over financial reporting or establish mitigating controls concerned with review and oversight.

View Audit 3870

Finding 2243 (2022-001)

Significant Deficiency 2022

Victory Heights, Inc.

MD

HUD Housing Programs Eligibility

Our back up plan for when a staff member is out or a position vacant is to have someone who is authorized to run EIV at another location/site to help cover until a replacement is found. In this case the EIV paperwork was held at a separate location and has since been placed in all the correct files....

Our back up plan for when a staff member is out or a position vacant is to have someone who is authorized to run EIV at another location/site to help cover until a replacement is found. In this case the EIV paperwork was held at a separate location and has since been placed in all the correct files. A full EIV Policy and Procedure manual is located on site and the new employee is trained on these policies by their supervisor and compliance manager. Both items were addressed in the follow up to the audit. The adjusted income was dealing with a lump sum of income which is not included in income. Correction was made to the 50059. The tenant signed her recertification paperwork 20 days late due a transition in the office. This was documented and file has been corrected. Additional training is provided to all managers on Section 8 Policies and Procedures on a regular basis. Policies and Procedures are also located on our direct intra network for individuals to refer to specific calculations, income issues, asset issues, forms and policies. This training is ongoing.

View Audit 3827

Finding 2242 (2022-002)

Material Weakness 2022

Victory Crest, Inc.

MD

HUD Housing Programs Eligibility

Onsite team members have received refresher training and have the EIV binder available onsite. They have also set calendar reminders to make sure that EIV reports are pulled in a timely manner. The findings regarding EIV have been addressed through refresher training and referring to the EIV binder ...

Onsite team members have received refresher training and have the EIV binder available onsite. They have also set calendar reminders to make sure that EIV reports are pulled in a timely manner. The findings regarding EIV have been addressed through refresher training and referring to the EIV binder when any policies/procedures are in question. The regional manager will be following up with the onsite to make sure they are in compliance.

View Audit 3821

Finding 2241 (2022-001)

Material Weakness 2022

Victory Crest, Inc.

MD

HUD Housing Programs Eligibility

Onsite team members have received refresher training and have the EIV binder available onsite. They have also set calendar reminders to make sure that EIV reports are pulled in a timely manner. The findings regarding EIV have been addressed through refresher training and referring to the EIV binder ...

Onsite team members have received refresher training and have the EIV binder available onsite. They have also set calendar reminders to make sure that EIV reports are pulled in a timely manner. The findings regarding EIV have been addressed through refresher training and referring to the EIV binder when any policies/procedures are in question. The regional manager will be following up with the onsite to make sure they are in compliance.

View Audit 3821

Finding 2240 (2022-001)

Material Weakness 2022

Renton School District No. 403

WA

Questioned Costs Equipment & Real Property Management Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Renton School District No. 403 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regul...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Renton School District No. 403 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported 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 allowable activities and costs, equipment, and restricted purpose requirements. Name, address, and telephone of District contact person: Jason Franklin, Executive Director 300 S.W. 7th Street Renton, WA 98057 (425) 204-2394 Corrective action the auditee plans to take in response to the finding: The District will correct its internal process of identifying departments participating in federal grants at the inception of the work. This will ensure that proper internal control procedures will be applied to grant applications, claims filing, asset tracking, and program requirements. More specifically, the District will ensure the Technology Department processes grant applications and transactions through the Budget and Grants team to ensure the application of current functioning internal controls. Reviews will be conducted of Technology finance activity with strategic collaboration of task management. Anticipated date to complete the corrective action: 10/27/2023

View Audit 3819 Questioned Costs: $1

Finding 2236 (2022-008)

Significant Deficiency 2022

Enlace Chicago

IL

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

2022-008 Credit Cards Recommendation: We recommend that management follow established policies and procedures for submitting credit card receipts and obtaining supervisor's approval prior to credit card expenses being paid. All support and back up should be maintained. Views of Responsible Offici...

2022-008 Credit Cards Recommendation: We recommend that management follow established policies and procedures for submitting credit card receipts and obtaining supervisor's approval prior to credit card expenses being paid. All support and back up should be maintained. Views of Responsible Officials: There is no disagreement with this finding. Action taken in response to finding: Action taken in response to finding Enlace Chicago has and follows established policies and procedures for submitting credit card receipts and obtaining supervisor's approval prior to credit card expenses being paid. We were not able to find certain cc holder documentation due to misfiling, but no credit card payment is processed without documentation. A process of signing out filed documentation has been created to establish a system of documenting when a filed document needs to be pulled. We will also improve on the consistency of documenting review and approved by process. Name of the contact person responsible for corrective action: Laura Velazques, Director of Budget and Planning and Myriam Quezada, Assistant Controller Planned completion date for corrective action plan: June 30, 2023For questions regarding this plan, please call Marcella Rodriguez, Co-Executive Director, at 708-577-3373.

View Audit 3817 Questioned Costs: $1

Finding 2235 (2022-007)

Significant Deficiency 2022

Enlace Chicago

IL

Reporting Significant Deficiency Internal Control / Segregation of Duties

Significant Deficiency Immigrant and Refugee Housing Assistance Project 2022-007 Reporting Recommendation: We recommend that management follow established policies and procedures for timely preparation of reports under program requirements financial reports. Documented timing of preparation and ap...

Significant Deficiency Immigrant and Refugee Housing Assistance Project 2022-007 Reporting Recommendation: We recommend that management follow established policies and procedures for timely preparation of reports under program requirements financial reports. Documented timing of preparation and approval should be maintained and documented. Views of Responsible Officials: There is no disagreement with this finding. Action taken in response to finding: Enlace Chicago has continued to review and approve reports prior to submission as required by the state agency. As stated in last year’s finding response, the attestation of review and approval is embedded in the report form provided by the grantor. We will continue to put forth best efforts to take a step further and document preparation and review on the report form to satisfy the internal process requirement. Name of the contact person responsible for corrective action: Laura Velazquez, Director of Budget and Planning Planned completion date for corrective action plan: June 30, 2023

View Audit 3817

Finding 2232 (2022-006)

Material Weakness 2022

Enlace Chicago

IL

Allowable Costs / Cost Principles

Significant Deficiency Immigrant And Refugee Housing Assistance Project 21st Century Community Learning Centers 2022-006 Payroll Allocation Recommendation: We recommend that management follow established policies and procedures for the allocation of employee costs across the Organization's grants a...

Significant Deficiency Immigrant And Refugee Housing Assistance Project 21st Century Community Learning Centers 2022-006 Payroll Allocation Recommendation: We recommend that management follow established policies and procedures for the allocation of employee costs across the Organization's grants and programs. All supporting documentation of time sheets and allocation procedures should be maintained. Additionally, preparer and reviewer sign-offs should be documented with sign-offs and dates. Views of Responsible Officials: Enlace Chicago was unable to provide timesheets to our auditors for FY21 as we transitioned payroll providers in December of 2021. Despite assurances from the prior provider, at the time of request, they were unable to produce prior period timesheets. Despite our inability to generate the timesheets requested, Enlace Chicago requires all staff to complete timesheets in order to process payroll. Providing timesheets for future periods will not be an issue moving forward. Name of the contact person responsible for corrective action: Laura Velazquez, Director of Budget and Planning Planned completion date for corrective action plan: June 30, 2023.

View Audit 3817

Finding 2206 (2022-002)

Material Weakness 2022

Albia Community School District

IA

Internal Control / Segregation of Duties Reporting

The District will continue to review and evaluate staff assignments and areas where additional internal control is necessary. The District Office Manager and Administrative Assistant continue to learn new roles and divide responsibilities in the area of payroll processing, data entry, receiving and...

The District will continue to review and evaluate staff assignments and areas where additional internal control is necessary. The District Office Manager and Administrative Assistant continue to learn new roles and divide responsibilities in the area of payroll processing, data entry, receiving and general ledger at the District level. We are utilizing online payments for lunch accounts, registration and for some activities to reduce overall exposure with cash candling. We have also changed some roles for associates, secretaries and a kitchen assistant to ensure daily deposits, receipts and receipt entry are not under the control of one person.

View Audit 3787

Finding 2166 (2022-002)

Material Weakness 2022

Housing Authority of the City of Omaha

NJ

Questioned Costs HUD Housing Programs Eligibility

Finding Reference Number: 2022-001 Recommendation The Authority should ensure proper internal controls, which include timely monthly reconciliations of account balances, are in place to prevent material weaknesses from occurring. Reporting views of responsible officials Auditee agrees with the au...

Finding Reference Number: 2022-001 Recommendation The Authority should ensure proper internal controls, which include timely monthly reconciliations of account balances, are in place to prevent material weaknesses from occurring. Reporting views of responsible officials Auditee agrees with the auditor and management will be responsible for implementing the corrective action plan. Completion date or proposed completion date: December 31, 2023 Action(s) taken or planned on the finding Gary Hatfield is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring. Finding Reference Number: 2022-002 Recommendation We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Reporting views of responsible officials The Authority experienced significant turnover in employees during the year and as a result certain source documents were misplaced or destroyed. Management agrees with the Auditors' finding and has hired a new Chief Financial Officer who will implement the required safeguards and ensure that the Authority follows its Section 8 Administrative Plan and the HUD compliance requirements to remedy the aforementioned deficiencies. Completion date or proposed completion date: December 31, 2023 Action(s) taken or planned on the finding Gary Hatfield is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring.

View Audit 3737 Questioned Costs: $1

Finding 2162 (2022-002)

Significant Deficiency 2022

Biostl

MO

Procurement, Suspension & Debarment

Finding No. 2022-002 Significant Deficiency Personnel Responsible For Corrective Action: Mike Higgins, Vice President of Development, Christina Green, Vice President of Finance and Human Resources, Procurement and Compliance Officer, to be hired, Grant Manager, to be hired Anticipated Completion Dat...

Finding No. 2022-002 Significant Deficiency Personnel Responsible For Corrective Action: Mike Higgins, Vice President of Development, Christina Green, Vice President of Finance and Human Resources, Procurement and Compliance Officer, to be hired, Grant Manager, to be hired Anticipated Completion Date: Completed Corrective Action Plan: Along with strengthening of reporting, the hiring of the dedicated Grants Coordinator position additionally improved controls related to procurement. Updated internal forms to document purchasing and classify procurement requirements were established and integrated with project management tools; new procurement templates were established; and improved repositories for cataloguing procurement materials and invoices were established. Additionally, in 2023, as noted above, BioSTL created a new position to ensure internal programmatic and financial control for grants – initiating the hiring of a new Grants Manager role that has already been posted to our website and recruiting has begun. This role will have more dedicated time and responsibility for internal controls and be responsible for oversight and effectiveness of all internal controls – above and beyond existing and previous supervisory review from the VP, Development and SVP, Programs. In 2024, a Procurement and Compliance Officer role is being added to further ensure internal controls for all contracts are adhered to and to provide further structure around the processes. The required language provided by the EDA is included in all BioSTL contracts as specifically noted by the EDA. There is not a call out specifically to suspension and disbarment, however, the language provided by the EDA entails these aspects. Moving forward, the suspension and disbarment language will now be included specifically in all contracts and has been added into the contract template.

View Audit 3729

Finding 2161 (2022-001)

Significant Deficiency 2022

Biostl

MO

Subrecipient Monitoring Reporting Significant Deficiency

Finding No. 2022-001 Significant Deficiency Personnel Responsible For Corrective Action: Mike Higgins, VP of Development; Ben Johnson, SVP of Programs; and Grant Manager, to be hired Anticipated Completion Date: Completed Corrective Action Plan: Of the six reports selected for testing, the specific ...

Finding No. 2022-001 Significant Deficiency Personnel Responsible For Corrective Action: Mike Higgins, VP of Development; Ben Johnson, SVP of Programs; and Grant Manager, to be hired Anticipated Completion Date: Completed Corrective Action Plan: Of the six reports selected for testing, the specific grant report found to be 7 days after the deadline fell at a time of employee transition – when a prior employee with responsibility for report filing moved on to another role at another company and a newly created Grants Coordinator position was filled to take over responsibility. Given the timing of the on-boarding process and education around EDA processing, the report was submitted 7 days late. It should be noted that all subsequent reports were submitted timely. With the establishment of the dedicated Grants Coordinator position (the timing of which coincided with the timing of the cited report), improved controls came into place – namely: 1) dual supervisory review of reports between the direct supervisor of theGrants Coordinator position and the legacy supervisory role of the Senior Vice President Programs; 2) a clearer timeline of reporting was established with project management systems and document repositories (e.g., Salesforce, Asana, and Box) with additional reminders in place to ensure adequate notice is provided to individuals responsible for providing information; and 3) there is a structured follow-up process, at periodic intervals, for report review to ensure deadlines are met. Additionally, in 2023, BioSTL created another new position to ensure internal programmatic and financial control for grants – initiating the hiring of a new Grants Manager role that has already been posted to our website and recruiting has begun. This role will have more dedicated time and responsibility for internal controls and be responsible for timeliness on all reporting and to monitor against all compliance requirements – above and beyond existing and previous supervisory review from the VP, Development and SVP, Programs.

View Audit 3729

Finding 2157 (2022-002)

Material Weakness 2022

Easton Valley Community School District

IA

Internal Control / Segregation of Duties Reporting

The District will continue to look into our internal controls and review procedures to ensure we are operating efficiently as possible with limited staff numbers.

View Audit 3728

Finding 2123 (2022-001)

Significant Deficiency 2022

Housing Authority of Plainfield

NJ

In response to audit finding 2022-001 cited in the Authority’s audit report as of December 31, 2022, please be advised that it is the Authority’s policy is to follow appropriate procedures with respect to properly maintaining tenant files of the Housing Choice Vouchers program. However, during ye...

In response to audit finding 2022-001 cited in the Authority’s audit report as of December 31, 2022, please be advised that it is the Authority’s policy is to follow appropriate procedures with respect to properly maintaining tenant files of the Housing Choice Vouchers program. However, during year 2022 our Housing Manager resigned and has not been replaced as yet. Her responsibilities were assumed by the Assistant Housing Manager who was not as experienced nor fully trained to assume the responsibilities. Because of the shortage in personnel as a result of the Housing Manager’s resignation, normal monitoring procedures were not performed which led to the deficiencies cited in the audit report.

View Audit 3669

Finding 2123 (2022-001)

Significant Deficiency 2022

Housing Authority of Plainfield

NJ

Subsequently, the Assistant Housing Manager has received and will continue the receive on-going training in procedures of the Housing Choice Vouchers program. We will also continue our monitoring procedures by periodically examining an appropriate selection of tenant files to ensure compliance with...

Subsequently, the Assistant Housing Manager has received and will continue the receive on-going training in procedures of the Housing Choice Vouchers program. We will also continue our monitoring procedures by periodically examining an appropriate selection of tenant files to ensure compliance with the Program’s requirements. Furthermore, we will seek to hire a new, experienced Housing Manager.

View Audit 3669

Finding 2123 (2022-001)

Significant Deficiency 2022

Housing Authority of Plainfield

NJ

As the disruption is service caused by the pandemic comes to an end, we anticipate that we will be able to perform Housing Quality Inspections in accordance with the Housing Choice Vouchers program.

View Audit 3669

Finding 2111 (2022-003)

Material Weakness 2022

Calhoun Liberty Hospital Association INC

FL

Questioned Costs Reporting Internal Control / Segregation of Duties

FEDERAL AWARD PROGRAMS AUDIT FINDING Material Weakness in Internal Control over Compliance Finding (2022-003) Recommendation: We recommend the Association continue to design and implement controls, including levels of review, to ensure reporting is prepared using accurate financial information and ...

FEDERAL AWARD PROGRAMS AUDIT FINDING Material Weakness in Internal Control over Compliance Finding (2022-003) Recommendation: We recommend the Association continue to design and implement controls, including levels of review, to ensure reporting is prepared using accurate financial information and in accordance with reporting requirements. Planned Corrective Action: The Association will ensure the appropriate grouping of Medicaid supplemental payments when calculating Total Revenue/Net Charges from patient care. One of the supplemental payments is related to the hospital's eligibility to receive the associated payment under the Medicaid Rural Disproportionate Share Hospital (ROSH) Program or the Rural Financial Assistance Program (RFAP). The RFAP is based upon a fixed sum of money. Therefore, the annual RFAP distribution received by a hospital represents an amount proportional to the hospital's contribution for providing indigent and Medicaid care as compared to all other RFAP eligible rural hospitals and is calculated in accordance with Florida statute. In addition, the Directed Payment Program (OPP}, as approved by the Florida legislature in 2021, provides funding for hospitals that provide inpatient and outpatient services to Medicaid managed care enrollees. This program is intended to address the shortfall to hospitals by collecting Intergovernmental Transfers (IGTs) and Local Provider assessments (LP) to draw down Federal Medicaid Matching dollars.

View Audit 3663 Questioned Costs: $1

Finding 2104 (2022-004)

Material Weakness 2022

Lincoln Hall

NY

Allowable Costs / Cost Principles

For the year ended June 30, 2022 audit, the audit team noted that certain costs were not being recorded in the payroll system timely and correctly on a monthly basis. Process changes have been implemented but we are currently still working to “de-bug” certain parts of our allocation and direct-cha...

For the year ended June 30, 2022 audit, the audit team noted that certain costs were not being recorded in the payroll system timely and correctly on a monthly basis. Process changes have been implemented but we are currently still working to “de-bug” certain parts of our allocation and direct-charge processes; these are captured in the corrective action plan. We believe that these actions will make a significant impact in preventing any needed reallocation of costs at year-end and provide us with accurate cost allocations on a monthly basis.

View Audit 3654

Finding 2103 (2022-003)

Material Weakness 2022

Lincoln Hall

NY

Reporting

During the audit, BDO noted that two SF-PPR quarterly reports, two quarterly SF-425 reports, and the annual required financial reporting were not filed on time; certain of these reports did not follow the period reporting requirements of the grant (e.g., the October to December report requirement wa...

During the audit, BDO noted that two SF-PPR quarterly reports, two quarterly SF-425 reports, and the annual required financial reporting were not filed on time; certain of these reports did not follow the period reporting requirements of the grant (e.g., the October to December report requirement was reported using November to January). Further, the Uniform Guidance report was not submitted on time. We have been taking several steps to reinforce adherence to the reporting process. These actions have included staff trainings and a review our current policies and procedures. We are working on aligning the reports generated by our accounting system to be consistent with the requirements reported on the SF-425. We are producing monthly reports to verify charges to the FRP program (as well as other programs) are correctly charged and allocated. The goal of our corrective actions is to significantly limit instances of noncompliance with this requirement.

View Audit 3654

Finding 2102 (2022-002)

Material Weakness 2022

Lincoln Hall

NY

Allowable Costs / Cost Principles Cash Management Material Weakness

For the year ended June 30, 2022 audit, the audit team noted that payroll, personnel costs, and other than personnel service expenses were not being allocated by cost center on a monthly basis. This issue resulted in errors in the amount charged to various programs resulting in the need for a materi...

For the year ended June 30, 2022 audit, the audit team noted that payroll, personnel costs, and other than personnel service expenses were not being allocated by cost center on a monthly basis. This issue resulted in errors in the amount charged to various programs resulting in the need for a material allocation adjustment. In accordance with Uniform Guidance 200.405, costs that benefit multiple programs should be allocated to the programs based on the proportional benefit. Lincoln Hall did not have the adequate cost allocation mechanisms in place to properly allocate expenses throughout the year. We have been taking several steps to address the issue with allocating costs. The Federal Award Finding and Questioned Costs Finding Number 2022-002 is a result of the initial way in which the general ledger and payroll systems were set up, requiring the majority of allocation work to be done manually in Excel. These manual allocations were done in detail after fiscal year-end to ensure our financial statements at year-end were not misstated. However, this detailed allocation work was not being done on a monthly basis. We have upgraded the Serenic Navigator accounting system two times to improve its accounting capabilities and have also implemented additional allocation processes including allocation of payroll expenses of federal awards. We currently use line-item allocations in The Serenic Navigator for direct costs that are allocated when invoices are paid. During FY 2022 we are continuing to review and revise our process in order to allocate expenses (particularly payroll costs) in the general ledger on a monthly basis for allocations in the past that were performed at the end of the fiscal year. The goal of our corrective actions is to significantly limit the material reallocation of costs by function at year-end and provide us with accurate cost allocations on a monthly basis. This will allow for more accurate reporting on a month-to-month basis and, therefore, will generate more timely and accurate financial information, thereby improving our compliance with cash management during the grant period.

View Audit 3654

Finding 2101 (2022-001)

Material Weakness 2022

Lincoln Hall

NY

Allowable Costs / Cost Principles Material Weakness

For the year ended June 30, 2022 audit, the audit team noted that payroll and personnel costs were not being recorded in the payroll system correctly on a monthly basis. This issue resulted in errors in the amount charged to various programs during the year and resulted in the need for a material al...

For the year ended June 30, 2022 audit, the audit team noted that payroll and personnel costs were not being recorded in the payroll system correctly on a monthly basis. This issue resulted in errors in the amount charged to various programs during the year and resulted in the need for a material allocation adjustment after fiscal year-end. As payroll allocations were a major driver in other than personnel service (OTPS) expense allocations, OTPS costs also required material allocations adjustments at year end. Lincoln Hall has continued our remedial efforts for this audit findings. In 2017, we upgraded the Serenic Navigator accounting software from the 2007 version to the 2013 version, and from the 2013 version to the 2017 version in December 2019. The intent of these upgrades was to strengthen our controls and visibility into accounting records. Furthermore, we have been working on correcting the accounting process related to charging payroll and other applicable costs directly to the appropriate programs. Lincoln Hall began the process of reviewing its financial system and processes and implementing changes in fiscal year (FY) 2020 though these process changes took longer than originally expected due to delays as a result of the COVID-19 pandemic. Process changes have been implemented but we are currently still working to “de bug” certain parts of our allocation and direct charge processes; these are captured in the corrective action plan. For example, internal controls have been improved upon ensuring that employees are appropriately classified to programs within the Paychex system. Reviews are performed each pay period to verify employee’s allocability to programs. We believe that these actions will make a significant impact in preventing the material reallocation of costs by function at year-end and provide us with accurate cost allocations on a monthly basis.

View Audit 3654

Corrective Action Plans

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