Corrective Action Plans

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Views of Responsible Officials and Planned Corrective Action Management concurred with the finding and indicated that steps will be taken to mitigate the impact of staffing absences and ensure timely submission of all required reports in future periods.
Views of Responsible Officials and Planned Corrective Action Management concurred with the finding and indicated that steps will be taken to mitigate the impact of staffing absences and ensure timely submission of all required reports in future periods.
Recommendation – We realize that with a limited number of office employees, segregation of duties is difficult. However, the District should review the operating procedures of the District to obtain maximum internal control possible under the circumstances.
Recommendation – We realize that with a limited number of office employees, segregation of duties is difficult. However, the District should review the operating procedures of the District to obtain maximum internal control possible under the circumstances.
U.S. Department of Agriculture 2025-008 Weakness in Internal Control Over Compliance of Suspension and Debarment Federal Program: Child Nutrition Cluster — USDA Commodities (15.550), School Breakfast Program (10.553), National School Lunch Program (10.555), Summer Food Service Program for Children (...
U.S. Department of Agriculture 2025-008 Weakness in Internal Control Over Compliance of Suspension and Debarment Federal Program: Child Nutrition Cluster — USDA Commodities (15.550), School Breakfast Program (10.553), National School Lunch Program (10.555), Summer Food Service Program for Children (10.559) Management agrees with the finding and will update the Child Nutrition Procurement Plan and related procedures to ensure suspension and debarment requirements are clearly applied to all covered transactions, including those executed through various procurement methods. Management will also work to design and implement internal controls to ensure suspension and debarment verifications are consistently performed and documented for covered transactions under the Child Nutrition Cluster. Person responsible: Christin Legros, Director of Finance Expected completion date: June 2026
U.S. Department of Agriculture 2025-007 Weakness in Internal Controls Over Compliance of Allowable Costs/Cost Principles of Payroll Disbursements Federal Program: Child Nutrition Cluster — USDA Commodities (15.550), School Breakfast Program (10.553), National School Lunch Program (10.555), Summer Fo...
U.S. Department of Agriculture 2025-007 Weakness in Internal Controls Over Compliance of Allowable Costs/Cost Principles of Payroll Disbursements Federal Program: Child Nutrition Cluster — USDA Commodities (15.550), School Breakfast Program (10.553), National School Lunch Program (10.555), Summer Food Service Program for Children (10.559) Management agrees with the finding and has reviewed the payroll items identified during the audit and has taken corrective action to address schedule discrepancies and unsupported payroll entries. Management has conducted a review of employee schedules within the timekeeping system to ensure alignment with payroll records and has corrected errors identified. Management plans to continue performing periodic reviews of payroll data to identify potential discrepancies and to take corrective action as needed. Management will also evaluate identified payroll discrepancies on a case‑by‑case basis to determine whether recovery or adjustment is appropriate. Person responsible: Christin Legros, Director of Finance Expected completion date: June 2026
U.S. Department of Education 2025-006 Weakness in Internal Control Over Compliance of Suspension and Debarment Federal Program: Special Education Cluster (IDEA); Special Education – Grants to States (IDEA, Part B) Assistance Listing No. 84.027, Special Education – Preschool Grants (IDEA, Part B – Pr...
U.S. Department of Education 2025-006 Weakness in Internal Control Over Compliance of Suspension and Debarment Federal Program: Special Education Cluster (IDEA); Special Education – Grants to States (IDEA, Part B) Assistance Listing No. 84.027, Special Education – Preschool Grants (IDEA, Part B – Preschool) Assistance Listing No. 84.173 Management agrees with the finding and will work on designing and implementing internal controls to ensure suspension and debarment verifications are performed and documented for covered transactions under the Special Education Cluster. Person responsible: Christin Legros, Director of Finance Expected completion date: June 2026
Management’s Response/Corrective Action Plan: The Town was unaware of the suspension and debarment requirements under Uniform Guidance §200.214. Upon notification of this finding, the Town has implemented corrective measures to ensure compliance. Effective immediately, the Town will verify all vendo...
Management’s Response/Corrective Action Plan: The Town was unaware of the suspension and debarment requirements under Uniform Guidance §200.214. Upon notification of this finding, the Town has implemented corrective measures to ensure compliance. Effective immediately, the Town will verify all vendors before contract execution by searching SAM.gov to confirm they are not suspended or debarred. Additionally, the Town will require vendors to provide written certification of their suspension and debarment status. Documentation of both the SAM.gov verification and vendor certification will remain with the applicable grant records. These procedures will be incorporated into the Town’s standard procurement practices and will apply to all federally funded projects, including a $1.1 million Congressionally Directed Spending (CDS) award for which the Town awaits receipt.
Finding 2025-001 Fiscal year in which the finding occurred: 2025 Pass-Through Entity, if pass-through or Federal Grantor Agency, if direct: U.S. Department of Labor Contact person responsible for the corrective action: Michael Brey Description of Audit Finding: An effective internal control system w...
Finding 2025-001 Fiscal year in which the finding occurred: 2025 Pass-Through Entity, if pass-through or Federal Grantor Agency, if direct: U.S. Department of Labor Contact person responsible for the corrective action: Michael Brey Description of Audit Finding: An effective internal control system was not designed or implemented at the Organization related to payroll and incentives/subscriptions to ensure compliance with requirements related to the grant agreements and Allowable Costs/Cost Principles compliance requirements. Corrective Action to be Taken: Beginning in April 2026, the organization has changed the process to record payroll to be charged to the grant. A spreadsheet has been created to track each payroll register and the amounts paid to each employee assigned to the grant. This data will be tracked throughout the year and checked against the payroll amount allowed per the grant budget. If any adjustments are required, that will happen in June and December. The payroll spreadsheet will be reviewed by a second employee to validate the spreadsheet is correct. Beginning in February 2026 the organization has corrected the subscription pricing to $1,500 per eligible shop. Additionally, the organization identified that certain shop incentives were being overcharged to the grant due to sales tax being added to the tool kit. The organization has adjusted the composition on the tool kit to reduce the amount including sales tax to be under the $8,500 allowable limit. Any excess incentive awarded in 2026 will not be submitted to the DOL for reimbursement from the grant. The tracking file for shop incentive awards is reviewed by the Controller. Correcting adjustments will be made to the grantor financial reports in 2026 to correct the overcharged payroll costs and incentives/subscription costs identified in 2025 and to properly reflect the cumulative grant expenditures in accordance with Allowable Costs/Cost Principles compliance requirements. Grantor financial reports will be reviewed by a second employee. Anticipated completion date: New process in place effective 4/1/26.
Agency personnel will ensure all documentation and support is maintained.
Agency personnel will ensure all documentation and support is maintained.
Agency personnel will ensure costs that are charged to federal awards were incurred during the applicable period of performance and recorded in the correct period.
Agency personnel will ensure costs that are charged to federal awards were incurred during the applicable period of performance and recorded in the correct period.
Agency personnel will ensure they are minimizing the time between the transfer of funds from the federal awarding agency and the disbursement of those funds.
Agency personnel will ensure they are minimizing the time between the transfer of funds from the federal awarding agency and the disbursement of those funds.
Procurement, Suspension, and Debarment Auditor Description of Criteria, Condition, and Effect: Under the requirements of 2 CFR Part 180 covered transactions for procurement and nonprocurement contracts that are expected to equal or exceed $25,000, the grantee must verify that the party being awarded...
Procurement, Suspension, and Debarment Auditor Description of Criteria, Condition, and Effect: Under the requirements of 2 CFR Part 180 covered transactions for procurement and nonprocurement contracts that are expected to equal or exceed $25,000, the grantee must verify that the party being awarded procurement and nonprocurement contract is not suspended, debarred, or otherwise excluded by checking the list of excluded parties, obtaining certification from the vendor or subrecipient, or including a clause or condition to the covered transaction with that entity. For two out of two vendors selected for testing, the YMCA was unable to provide evidence that the vendors were not suspended, debarred, or otherwise excluded at the time they were engaged to provide goods or services. As a result of this condition, the YMCA was exposed to an increased risk that disbursements of federal awards could be made to vendors suspended or debarred by the federal government. Auditor Recommendation: We recommend that the YMCA review its written policies and procedures over federal awards with employees responsible for grant compliance to ensure that they are being followed consistently. Corrective Action: YMCA relied upon outside legal counsel for guidance in the procurement process. In the future, YMCA will perform this procedure or ensure that legal counsel performs this procedure. Responsible Person: Phil Platz, CFO Anticipated Completion Date: 6/12/2026
Procurement, Suspension, and Debarment Auditor Description of Criteria, Condition, and Effect: Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. 2 CFR 200.320 requires that these purchases m...
Procurement, Suspension, and Debarment Auditor Description of Criteria, Condition, and Effect: Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. 2 CFR 200.320 requires that these purchases must adhere to one of the allowable procurement methods (sealed bids, competitive proposals, noncompetitive procurement) and maintain documentation of this procurement decision In addition, the Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to Procurement (including bidding and a conflict of interest policy) (§200.318). For one of the two vendors tested, the YMCA was unable to provide documentation to support that competitive bidding was performed in accordance with the YMCA's policies and procedures. Although the YMCA has processes in place to cover these areas, we noted during review of procurement policies, that management has two procurement policies, one for general competitive bids and one for federal funds. We noted that while the federal funds procurements thresholds are in line to what is required by 2 CFR 200.318, the policy was not being followed consistently. As a result of this condition, one vendor was paid with federal funding for which appropriate procurement records were not maintained in accordance with federal procurement standards. The YMCA did not fully comply with the Uniform Guidance applicable to the above noted grant. Auditor Recommendation: We recommend that the YMCA review its written policies and procedures over federal awards with employees responsible for grant compliance to ensure that they are being followed consistently. Corrective Action: Although we performed the proper procedures, the passage of time resulted in a misplacing of the supporting documentation. We relied upon legal counsel to retain the documentation. This was a unique and one-time award. In the future, we will take responsibility for the retention of the supporting documentation, Responsible Person: Phil Platz, CFO Anticipated Completion Date: 6/12/2026
2025-002: Reporting Submissions Not Performed Timely Federal Department: Department of Housing and Urban Development Assistance Listing #: 14.251 Internal Controls Significant Deficiency & Noncompliance Category of Finding – Reporting Name of contact person: Leah Cameron, Director of Supportive Serv...
2025-002: Reporting Submissions Not Performed Timely Federal Department: Department of Housing and Urban Development Assistance Listing #: 14.251 Internal Controls Significant Deficiency & Noncompliance Category of Finding – Reporting Name of contact person: Leah Cameron, Director of Supportive Services Corrective Action: Clare Housing will complete the following corrective action steps: • Clare Housing will establish a centralized reporting calendar for all grants that includes all required reports, due dates, and responsible staff. • Clare Housing will clearly assign ownership for each report, including primary and backup staff. • Clare Housing will utilize automated reminders (e.g., calendar alerts or task management tools) at key intervals prior to due dates. • Clare Housing will track report status (in progress, under review, submitted) to ensure visibility. • The Director of Supportive Services will monitor overall reporting compliance and conduct periodic file reviews. Clare Housing will ensure reporting requirements are met by establishing calendar reminders for all reporting requirements. Calendar reminders will include relevant staff, including but not limited to, the Director of Finance and the Director of Supportive Services. The Director of Supportive Services and Director of Finance will ensure submission of any prepared reports in the DRGR (or other relevant reporting) system by the appropriate due date. Completion Date: Creation of the centralized reporting calendar and tracking system and periodic file reviews will be by August 1, 2026.
2025-001: Lack of Documentation of Suspension/Debarment Testing at Time of Procurement Federal Department: Department of Housing and Urban Development Assistance Listing #: 14.251 Internal Controls Significant Deficiency & Noncompliance Category of Finding – Procurement, Suspension, and Debarment Na...
2025-001: Lack of Documentation of Suspension/Debarment Testing at Time of Procurement Federal Department: Department of Housing and Urban Development Assistance Listing #: 14.251 Internal Controls Significant Deficiency & Noncompliance Category of Finding – Procurement, Suspension, and Debarment Name of contact person: Zach Petroski, Director of Finance Corrective Action: Clare Housing will complete the following corrective action steps, which are consistent with the organization’s financial policies: • Clare Housing will continue to conduct verifications to ensure the organization is not entering into transactions with parties that are temporarily suspended or permanently debarred from doing business with the federal government. Clare Housing will do so by validating the potential vendors’ status in the System for Award Management (www.SAM.gov) portal and document the verification with a screenshot of the validation before any payment to a vendor is completed. These verifications will be completed by appropriate procurement/finance personnel and supervised by the Director of Finance. • Clare Housing will establish a centralized electronic filing system that houses the documentation for suspension/debarment verification. • Clare Housing will track and report any findings to management, including corrective actions for any recurring deficiencies. Completion Date: January 1, 2026
Non-compliance with Allowable Cost/Cost principle: a) Recommendation: We recommend that the Organization strengthen its internal controls over the coding, approval, and review of expenditures included in the Health Center Program to ensure compliance with Uniform Guidance allowable cost principles, ...
Non-compliance with Allowable Cost/Cost principle: a) Recommendation: We recommend that the Organization strengthen its internal controls over the coding, approval, and review of expenditures included in the Health Center Program to ensure compliance with Uniform Guidance allowable cost principles, including establishing procedures to systematically identify and exclude late fees, finance charges, and other penalty-type costs from federal awards, and providing training to finance and program staff on allowable versus unallowable costs. b) Planned corrective action: Agreed. Invoices are to be coded appropriately to ensure properassignment to grants. This exercise will include assigning late fees and other non-allowable expenses to general funds. c) Contact person responsible for corrective action: Steven Mayers d) Anticipated completion date: Implemented immediately, 6/10/2026 e) Status of implementation: Implemented.
The audittee intends to hire a CFO to help strengthen its accounting practices and policies and timely filing of reports
The audittee intends to hire a CFO to help strengthen its accounting practices and policies and timely filing of reports
Recommendation: We recommend that Eastern Lancaster County School District implement procedures to ensure that SNP Claim for Reimbursement Summary reports are independently reviewed and approved prior to submission to Program Electronic Application and Reimbursement System (PEARS). This review shoul...
Recommendation: We recommend that Eastern Lancaster County School District implement procedures to ensure that SNP Claim for Reimbursement Summary reports are independently reviewed and approved prior to submission to Program Electronic Application and Reimbursement System (PEARS). This review should be performed by an individual who is not involved in the preparation of the reports and evidence of the review should be documented. School District Response: (Corrective Action) Eastern Lancaster County School District will implement formal internal control procedures requiring review and documented approval of all SNP Claim for Reimbursement Summary reports prior to submission in PEARS. The following procedures will be implemented: 1. The Director of Food Services will prepare the monthly SNP Claim for Reimbursement Summary report and compile all supporting meal count documentation. 2. Prior to submission, the Administrative Assistant to the Director of Food Services or another designated individual independent of the preparation process will: o Review the claim for mathematical accuracy. o Verify meal counts against supporting documentation. o Confirm claims are submitted within required timelines. 3. Evidence of the review and approval will be documented through: o Signature or electronic approval on the reimbursement summary report. o Retention of supporting documentation in accordance with federal and state record retention requirements. 4. A written standard operating procedure (SOP) outlining these review and approval responsibilities will be developed and communicated to applicable personnel. 5. The Chief of Finance and Operation will periodically monitor compliance with the procedure to ensure controls remain effective. Anticipated Completion Date: The corrective action procedures will be fully implemented by June 1, 2026. Responsible Person for the Corrective Action: Keith D. Ramsey, Chief of Finance and Operations
FINDINGS—FEDERAL AWARD PROGRAMS AUDITS 2025-001 Lack of Internal Controls Over Compliance – Suspension and Debarment U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Congressional Directives—Assistance Listing No. 93.493 Significant Deficiency: See Finding 2025-001 Condition: The Organization did not es...
FINDINGS—FEDERAL AWARD PROGRAMS AUDITS 2025-001 Lack of Internal Controls Over Compliance – Suspension and Debarment U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Congressional Directives—Assistance Listing No. 93.493 Significant Deficiency: See Finding 2025-001 Condition: The Organization did not establish or maintain documented internal controls or procedures to verify and document, prior to entering into covered transactions, that vendors were not suspended, debarred, or otherwise excluded from participation in federal programs. Recommendation: We recommend the Organization establish and implement documented internal control procedures to ensure compliance with federal suspension and debarment requirements. Such procedures should include: (1) performing and documenting verification through SAM.gov prior to entering into covered transactions, (2) obtaining written certifications from vendors, and/or (3) including applicable suspension and debarment provisions in contracts. Documentation supporting compliance should be retained within the procurement files. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken: We will implement an internal control procedure to our procurement process. The new procedure is added to our financial policy. Such procedures include: (1) performing and documenting verification through SAM.gov prior to entering into covered transactions, (2) obtaining written certifications from vendors, and/or (3) including applicable suspension and debarment provisions in contracts. Documentation supporting compliance would be retained within the procurement files. Name of the contact person responsible for corrective action: Bin Zhu, Chief Financial Officer Planned completion date for corrective action plan: 5/23/2026 If the U.S. Department of Health and Human Services has questions regarding this plan, please call Bin Zhu at 763-784-7993.
2025-003 Eligibility Finding Type: Significant deficiency in Internal Controls over Compliance and Compliance Federal Program Title and AL Number: The Food Distribution Cluster (10.565, 10.568, 10.569). Criteria: Per Title 7 CFR § 247.8, to apply for or to be recertified for CSFP benefits, the appli...
2025-003 Eligibility Finding Type: Significant deficiency in Internal Controls over Compliance and Compliance Federal Program Title and AL Number: The Food Distribution Cluster (10.565, 10.568, 10.569). Criteria: Per Title 7 CFR § 247.8, to apply for or to be recertified for CSFP benefits, the applicant or caretaker of the applicant must be informed of his or her rights and responsibilities, in accordance with § 247.12, the local agency must ensure that the applicant or caretaker signs the application form. Condition and context: As part of our eligibility testing, and in order to determine compliance with the requirements, we verified that the CSFP participants had completed and signed applications or recertifications prior to receiving food distributions. For four out of 32 non-statistical samples, the application was completed but did not have the participants' signature. Cause: The Food Bank did not have controls in place to ensure the participant signatures were received prior to providing food assistance to the individual. Effect: The Food Bank was not able to demonstrate compliance with Title 7 CFR § 247.8. Questioned Costs: None Repeat finding: No Recommendation: We recommend the Food Bank implement controls to ensure CSFP applications and recertifications are signed by the applicant prior to the individual receiving food. Views of responsible officials and planned corrective actions: Management concurs with the finding and recommendation. Please see the attached corrective action plan. Management Response and Planned Corrective Action: Criteria: Per Title 7 CFR § 247.8, to apply for or to be recertified for Commodity Supplemental Food Program (“CSFP”) benefits, the applicant or caretaker of the applicant must be informed of his or her rights and responsibilities, in accordance with § 247.12, the local agency must ensure that the applicant or caretaker signs the application form. The Los Angeles Regional Food Bank (“Food Bank”) has submitted a request to “Oasis Insights”, the Food Bank’s software vendor utilized for CSFP, to reinstate mandatory field validation, or a “hard stop”, on CSFP applications to prevent case progression or assistance issuance when required signatures have not been captured. The Food Bank will verify that the mandatory field validation feature has been reinstated. Additionally, the Food Bank’s CSFP Program Manager will ensure that all Food Bank employees responsible for overseeing CSFP will be provided with retraining in the area of CSFP eligibility requirements. The Director of Compliance and Administration will verify that CSFP applications through Oasis are unable to progress forward without a required signature and that the aforementioned CSFP eligibility training has been completed. The Food Bank will complete these corrective actions on or before June 30, 2026. Individuals responsible for corrective action: Elizabeth Cervantes – Sr. Director of Product Acquisition and Agency Relations 323.974.0073 Hilda Ayala – Sr. Director of Programs and Policy 323.353.0114 Steven Meisberger – Chief Financial Officer 323.318.0319
2025-002 Suspension and Debarment Finding Type: Material Weakness in Internal Controls over Compliance and Compliance Federal Program Title and AL Number: The Food Distribution Cluster (10.565, 10.568, 10.569). Criteria: Per Title 2 CFR § 180.300, non-federal entities that enter into a covered trans...
2025-002 Suspension and Debarment Finding Type: Material Weakness in Internal Controls over Compliance and Compliance Federal Program Title and AL Number: The Food Distribution Cluster (10.565, 10.568, 10.569). Criteria: Per Title 2 CFR § 180.300, non-federal entities that enter into a covered transaction with an entity at a lower tier are required to verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. Covered transactions includes all non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount. Condition and context: As part of our suspension and debarment testing, and in order to determine compliance with the requirements, we verified that the suspension or debarment verification check for subrecipient agencies were performed prior to entering into agreements with these agencies. For all four non-statistical samples, the verification check was performed subsequent to when the Food Bank entered into the contract with the agency. None of the agencies selected were suspended or debarred. Cause: The Food Bank did not have controls in place to ensure the suspension or debarment verifications were performed when entering into agreements with agencies. Effect: The Food Bank was not able to demonstrate compliance with 2 CFR § 180.300. Questioned Costs: None Repeat finding: No Recommendation: We recommend that the Food Bank implement controls to ensure covered transactions with agencies at a lower tier are not suspended or debarred. Views of responsible officials and planned corrective actions: Management concurs with the finding and recommendation. Please see the attached corrective action plan. Management Response and Planned Corrective Action: The Los Angeles Regional Food Bank (“Food Bank”) is a non-federal entity that enters into transactions with its agency partners covered under Title 2 CFR § 180.300. This section requires the Food Bank to verify that its agency partners are not suspended or debarred or otherwise excluded from participating in transactions covered by this section. The Food Bank will modify its Agency Agreement template to include language requiring the Agency Partner to self-certify that they are neither suspended, nor debarred, nor otherwise excluded from participating in Federal Programs covered under Title 2 CFR § 180.300. The modified Agency Agreement will also require the Agency Partner to notify the Food Bank should they be placed on the federal suspension and debarment list. This modified Agency Agreement will be placed into service on or before June 1, 2026. All new Agency Partners onboarding after June 1, 2026, will use this new Agency Agreement. For all existing Agency Partners of record as of June 1, 2026, the Food Bank will begin a process of replacing their existing Agency Agreements with the new Agency Agreement described above. This process will be completed on or before December 31, 2026. For all existing Agency Partners of record as of June 1, 2026, the Agency Relations Department will continue performing the federal suspension and debarment check on the Agency Partners, specifically those onboarded to receive commodities under federal programs, on a quarterly basis. This action will be completed on or before December 31, 2026. The Director of Compliance and Administration will oversee the modification of the Agency Agreement. Individuals responsible for corrective action: Elizabeth Cervantes – Sr. Director of Product Acquisition and Agency Relations 323.974.0073 Steven Meisberger – Chief Financial Officer 323.318.0319
2025-001 Suspension and Debarment Finding Type: Material Weakness in Internal Controls over Compliance and Compliance Federal Program Title and AL Number: The Emergency Food Assistance Program (TEFAP) Commodity Credit Corporation Eligible Recipient Funds (10.187). Criteria: Per Title 2 CFR § 180.300...
2025-001 Suspension and Debarment Finding Type: Material Weakness in Internal Controls over Compliance and Compliance Federal Program Title and AL Number: The Emergency Food Assistance Program (TEFAP) Commodity Credit Corporation Eligible Recipient Funds (10.187). Criteria: Per Title 2 CFR § 180.300, non-federal entities that enter into a covered transaction with an entity at a lower tier are required to verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. Covered transactions includes all non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount. Condition and context: As part of our suspension and debarment testing, and in order to determine compliance with the requirements, we verified that the suspension or debarment verification check for subrecipient agencies were performed prior to entering into agreements with these agencies. For all four non-statistical samples, the verification check was performed subsequent to when the Food Bank entered into the contract with the agency. None of the agencies selected were suspended or debarred. Cause: The Food Bank did not have controls in place to ensure the suspension or debarment verifications were performed when entering into agreements with agencies. Effect: The Food Bank was not able to demonstrate compliance with 2 CFR § 180.300. Questioned Costs: None Repeat finding: Yes, 2024-001 Recommendation: We recommend that the Food Bank implement controls to ensure covered transactions with agencies at a lower tier are not suspended or debarred. Views of responsible officials and planned corrective actions: Management concurs with the finding and recommendation. Please see the attached corrective action plan. Management Response and Planned Corrective Action: The Los Angeles Regional Food Bank (“Food Bank”) is a non-federal entity that enters into transactions with its agency partners covered under Title 2 CFR § 180.300. This section requires the Food Bank to verify that its agency partners are not suspended or debarred or otherwise excluded from participating in transactions covered by this section. The Food Bank will modify its Agency Agreement template to include language requiring the Agency Partner to self-certify that they are neither suspended, nor debarred, nor otherwise excluded from participating in Federal Programs covered under Title 2 CFR § 180.300. The modified Agency Agreement will also require the Agency Partner to notify the Food Bank should they be placed on the federal suspension and debarment list. This modified Agency Agreement will be placed into service on or before June 1, 2026. All new Agency Partners onboarding after June 1, 2026, will use this new Agency Agreement. For all existing Agency Partners of record as of June 1, 2026, the Food Bank will begin a process of replacing their existing Agency Agreements with the new Agency Agreement described above. This process will be completed on or before December 31, 2026. For all existing Agency Partners of record as of June 1, 2026, the Agency Relations Department will continue performing the federal suspension and debarment check on the Agency Partners, specifically those onboarded to receive commodities under federal programs, on a quarterly basis. This action will be completed on or before December 31, 2026. The Director of Compliance and Administration will oversee the modification of the Agency Agreement. Individuals responsible for corrective action: Elizabeth Cervantes – Sr. Director of Product Acquisition and Agency Relations 323.974.0073 Steven Meisberger – Chief Financial Officer 323.318.0319
Corrective Action Plan 1. Establish Written Procedures o The District will develop and adopt written procedures outlining the process for preparing, reviewing, and approving monthly Claims for Reimbursement for all food service programs (Breakfast, Lunch, and Summer). o Procedures will specify respo...
Corrective Action Plan 1. Establish Written Procedures o The District will develop and adopt written procedures outlining the process for preparing, reviewing, and approving monthly Claims for Reimbursement for all food service programs (Breakfast, Lunch, and Summer). o Procedures will specify responsible staff, required documentation, timelines, and review steps prior to submission. 2. Implement Dual Review Process o The Food Service Director ( or designee) will prepare the monthly meal count report using data from the Infinite Campus system. o The assistant to the food service coordinator will perform a secondary review before submission to DESE. o The review will confirm: • Meal counts match Infinite Campus reports. • Correct classification of free, reduced, and paid meals. • Accuracy of totals by meal type (breakfas1/lunch). o Both preparer and reviewer will sign and date the Monthly Meal Count Verification Form as documentation ofreview. 3. Post-Submission Verification o After clairo submission, the reviewer will retain a copy of the DESE Claim for Reimbursement and supporting Infinite Campus reports in a centralized digital folder. o Random quarterly spot checks will be performed to confirm continued accuracy and compliance. 4. Training o The Food Service Director and business office staff will receive annual training on meal count reporting procedures and DESE claim submission requirements. o Training records will be maintained. 5. Timeline for Implementation o Written procedures finalized and approved by December 15, 2025. o Dual review process implemented beginning with the December 2025 claim. o Staff training completed by January 31, 2026. 6. Responsible Parties o Food Service Director - preparation and initial verification. o Chief Operations Officer - review and approval. o Superintendent - oversight and policy adoption. We are committed to ensuring the accuracy and integrity of our meal count reporting and eligibility determinations. The District will implement these corrective actions in a timely manner to address the identified findings and ensure compliance with applicable federal regulations.
Finding 2025-005 Lack of Internal Control over Special Tests and Provisions- Character Investigations Name of Contact Person: Alexis Russell, Human Resource Director Corrective Action: Background check verification will be added into the employee onboarding process for all Annette Island Service Uni...
Finding 2025-005 Lack of Internal Control over Special Tests and Provisions- Character Investigations Name of Contact Person: Alexis Russell, Human Resource Director Corrective Action: Background check verification will be added into the employee onboarding process for all Annette Island Service Unit employees to ensure required character investigations are completed and documented for all positions subject to Indian Child Protection and Family Violence Prevention Act requirements. In addition, Human Resources will conduct periodic internal reviews of personnel files to indentify and address any missing background check documentation for current employees Proposed Completion Date: Implemented in FY2026, ongoing monitoring in place.
Finding 2025-004 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Kyonia Hudson, Finance Director Corrective Action: The Finance Department has implemented stronger internal controls over reporting. Reporting responsibilities and submission timelines have been cle...
Finding 2025-004 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Kyonia Hudson, Finance Director Corrective Action: The Finance Department has implemented stronger internal controls over reporting. Reporting responsibilities and submission timelines have been clearly assigned to the Grants Accountant. In addition, a review process has been established to ensure reports agree with the general ledger prior to submission. MIC is currently in compliance with reporting requirements for Head Start and will continue ongoing monitoring to ensure continued compliance with federal reporting deadline and accuracy requirements. Proposed Completion Date: Implemented in FY2025, ongoing/monitoring and compliance procedures in place.
Finding 2025-003 Noncompliance with Reporting Requirements Name of Contact Person: Kyonia Hudson, Finance Director Corrective Action: Responsibility for financial reporting and drawdown requests has been transitioned to the Grants Accountant and aligned with the reporting and reconciliation procedur...
Finding 2025-003 Noncompliance with Reporting Requirements Name of Contact Person: Kyonia Hudson, Finance Director Corrective Action: Responsibility for financial reporting and drawdown requests has been transitioned to the Grants Accountant and aligned with the reporting and reconciliation procedures used for MIC’s federal awards. Finance will continue monitoring grant reporting to ensure financial reports are reviewed, reconcile to the general ledger, and submitted timely to the granting agency. Proposed Completion Date: Implemented in FY2026, ongoing monitoring in place.
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