Corrective Action Plans

Finding 572041 (2024-004)

Significant Deficiency 2024

CA

Reporting Matching / Level of Effort / Earmarking

Finding 2024-004 – Significant Deficiency Award No.: Assistance List No. 15.555 Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation. Compliance Requirement: Reporting. Condition: The District had a required $15,000 local match for the Poso Bridge Replacement project. The Dist...

Finding 2024-004 – Significant Deficiency Award No.: Assistance List No. 15.555 Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation. Compliance Requirement: Reporting. Condition: The District had a required $15,000 local match for the Poso Bridge Replacement project. The District had eligible expenditures to satisfy the local match, but did not report the local match to the grantor (U.S. Department of the Interior, Bureau of Reclamation) on the required SF-425 Federal Financial Reports. Criteria: The OMB’s approved Federal Financial Report (SF-425) states in line item instructions for the Federal Financial Report, “10i – Total Recipient Share Required: Enter the total required recipient share for reporting period specified in line 9. The required recipient share should include all matching and cost sharing provided by recipients and third-party providers to meet the level required by the Federal agency.” Cause: The SF-425 reports submitted by the District did not include the required recipient share on the report. Effect: The required recipient share was not properly reported to the grantor. Context: The District submitted the required semi-annual SF-425 Federal Financial Reports to the grantor and did not include the information for the required local share. Recommendation: We recommend management implement additional controls over the reporting process that ensures each report complies with the reporting requirements outlined in the SF-425 Federal Financial Reports. We further recommend the District establish a policy for internal review and sign-off for each submitted report to ensure clerical accuracy.

View Audit 363149

Finding 572038 (2024-003)

Material Weakness 2024

Central California Irrigation District

CA

Procurement, Suspension & Debarment § 200.210 § 200.318 § 200.326 § 200.327

Finding 2024-003 – Material Weakness Award No.: AL No. 15.555 and AL No. 15.074 Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation. AL No. 15.074 Passed-through the Del Puerto Water District. Compliance Requirement: Procurement, Suspension and Debarment. Condition: The follo...

Finding 2024-003 – Material Weakness Award No.: AL No. 15.555 and AL No. 15.074 Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation. AL No. 15.074 Passed-through the Del Puerto Water District. Compliance Requirement: Procurement, Suspension and Debarment. Condition: The following conditions were noted during the single audit: • The District was not able to provide evidence that procurements for the Mendota Pool Fish Screen and Control Structure Project and Poso Canal Bridge Replacement Project design contractors under AL 15.555 met the requirements for adequate price competition and was unable to provide documentation confirming the sole-source solicitations met the requirements of Uniform Guidance. Specifically the District was unable to provide evidence it received enough statements of qualification to have adequate price competition or complied with one or more provisions of Section 200.210(c) that allows a sole source agreement to occur. It would appear the District would need evidence that the grantor approved the sole source procurement, but was not able to provide documentation of approvals of sole source procurements by the grantors. The District also was unable to provide documentation of the advertisement of the solicitation of requests for qualifications for the Fish Screen and Control Structure Project. • The District was not able to provide adequate documentation that the Mendota Pool Fish Screen and Control Structure Project contract under AL 15.555 and Orestimba Creek Recharge and Recovery Expansion Project contract under AL 15.074 complied with Section 200.327 and appendix II to this part requiring federal contract provisions to be included in the approved contract. This resulted in the District not having evidence that the contractor certified it was in compliance with all required federal provisions. Criteria: Uniform Guidance states the following: • Section 200.318(i) states that “The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractors selection or rejection, and the basis for the contract price.” • Section 300.320(c) states “There are specific circumstances in which the recipient or subrecipient may use a noncompetitive procurement method. The noncompetitive procurement method may only be used if one of the following circumstances applies: (1) The aggregate amount of the procurement transaction does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); (2) The procurement transaction can only be fulfilled by a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from providing public notice of a competitive solicitation; (4) The recipient or subrecipient requests in writing to use a noncompetitive procurement method, and the Federal agency or pass-through entity provides written approval; or (5) After soliciting several sources, competition is determined inadequate. • The provisions of the Brooks Act (49 United State Code, Section 1104) require local agencies to award federally funded engineering and design related contracts, otherwise know as A&E contracts, on the basis of fair and open competitive negotiations, demonstrated competence, and professional qualifications (23 Code of Federal Regulations (CFR), Part 172) at a fair and reasonable price (48 CFR 31.201-3). Both federal regulation and California state law (Government Code 4525-4529 et a) require selection of A&E consultant services on the basis of demonstrated competence and professional qualifications. Procurement by noncompetitive proposals may be used only when the award of a contract is infeasible under small purchase procedures, sealed bids or competitive proposals, as cited above. • Section 200.327 states “The non-federal entity’s contracts must contain the applicable provisions described in appendix II to this part.” Appendix II contains requirements to include in federally funded contracts termination for cause and convenience provisions, Equal Employment Opportunity provisions, Davis-Bacon Act provisions, Contract Work Hours and Safety Standards Act provisions, Clean Air Act provisions, debarment and suspension provisions, Byrd Anti-Lobbying Amendment provisions, and other provisions, as applicable. Cause: The current staff was not able to find procurement documentation prepared before they were hired. Effect: The District was unable to provide evidence that it was in compliance with the requirement to maintain documentation indicating the procurement was in compliance with Uniform Guidance Sections 200.318 to 200.327 and appendix II to this part. Context: The original procurement for the consulting firm for the Mendota Pool Fish Screens and Control Structure project was performed in September 2018 and awarded in late October 2018. This procurement precedes the current staff. Staff indicated the grantor approved the Mendota Pool Fish Screen and Control Structure Project sole source procurement and the Board Resolution approving the agreement indicated the grantor approved the sole source procurement, but staff was not able to provide proof of written approval by the grantor. Recommendation: We recommend management implement additional controls over the procurement process that ensures each procurement complies with Uniform Guidance Section 200.318 to 200.326, including training of staff working on procurements of the documentation retention and other requirements under the Uniform Guidance. We further recommend the District establish a procurement folder on its server with subfolder for each individual procurement where documentation of each procurement is maintained, including advertising of the procurement, requests for proposals/qualifications with language that satisfies Uniform Guidance requirements, proposals received, executed contracts, certifications of compliance with federal contracting provisions by the contractor if not part of the proposal or executed contracts, documented quantitative and qualitative analysis indicating why the recommended bid was selected for approval, management report to board recommending which bid should be approved, board resolution approving the winning bid and for contracts under $250,000 a memo or form documenting bids received and reason for selecting the bid, including reasons for not selecting the lowest bid if applicable. If a sole source procurement method is used, documentation showing the sole source procurement is allowable under criteria listed in Section 300.320(c) should be retained. Views of Responsible Officials and Planned Corrective Actions: Management will keep procurement folders on each procurement in the future that includes the confirmation in the recommendation and will consult with Reclamation on whether a contract amendment is necessary to document the federal contract. Estimated Completion Date of Corrective Action: Future procurement projects

View Audit 363149

Finding 572036 (2024-002)

Significant Deficiency 2024

Central California Irrigation District

CA

Reporting Period of Performance Significant Deficiency § 200.502

Finding 2024-002 – Significant Deficiency Award No.: Assistance List (AL) No. 15.555 and No. 15.704 Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation. AL No. 15.074 Passed-through the Del Puerto Water District Compliance Requirement: Other compliance requirements. Condition: ...

Finding 2024-002 – Significant Deficiency Award No.: Assistance List (AL) No. 15.555 and No. 15.704 Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation. AL No. 15.074 Passed-through the Del Puerto Water District Compliance Requirement: Other compliance requirements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was not complete, and expenditures reported on the SEFA were revised during the single audit. Criteria2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.502 states, “The auditee should prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements.” Internal controls over preparation of the SEFA should be in place to ensure accrual basis expenses incurred under each federal program are properly reported as expenses on the SEFA and are properly reported as revenue in the financial statements prior to the start of the single audit. Cause: SEFA was not fully reconciled and finalized until after the single audit began. Effect: Expenses were omitted from the SEFA that should have been included and other expenses were included on the SEFA that were not eligible. The SEFA had to be revised for multiple grants over the course of the audit. This delayed the audit testing and major program determination process and could have resulted in the wrong programs being tested as major programs and the single audit not complying with the Uniform Guidance. Context: The District’s Finance Department was not informed of grant amendments that changed the amount of federal funding available. The expenses reported on the SEFA were revised during the single audit as follows. • AL No. 15.555 San Joaquin River Restoration Program Poso Canal Bridge Replacement: The District estimated additional reimbursable costs of $30,335 existed for the Poso Canal Bridge Replacement grant under a potential new $990,000 grant amendment that was to be signed by the USBR in 2025. The amendment was not approved for the Poso Canal Bridge Replacement but the District included the additional reimbursable expenses on the SEFA. The expenses on the SEFA had to be reduced to reflect the eligible federal grant maximum reimbursable expenses under the approved grant agreement at year-end. • AL No. 15.704 Small Surface Water and Groundwater Storage Projects Orestimba Creek Recharge and Recovery Expansion: An additional grant amendment was identified during the single audit that authorized an additional $1,262,928 of federal funding. The District had eligible expenses during the period of performance to fully claim the additional funding, but did not include the expenses on the SEFA. Recommendation: We recommend additional review procedures be implemented to ensure the SEFA is complete and accurate when the single audit begins, which includes working with program managers to identify each grant awarded, obtain current executed grant agreements and amendments, reconciling all expenses incurred under each federal awards down to the invoice, payroll check and lowest level of any other costs claimed, cutting-off each expense at year-end and claiming the reconciled qualifying expenses within 45 days after quarter end. At year-end, programs should be reviewed for cost adjustments, extensions, and other changes that should be reflected on the SEFA when reconciling expenses for the SEFA. Separate general ledger program codes should be used for each grant on the SEFA that summarizes expenses down to the individual invoice level that should be provided to the auditor for the single audit. If overclaimed amounts are identified, the grantor and/or pass-through agency should be contacted to determine whether to return the funds or apply the overclaimed amounts to future claims. Views of Responsible Officials and Planned Corrective Actions: Prepare a summary of grant expenses to reconcile to claims with performance periods included. Staff has prepared an expense summary for Orestimba Creek Recharge and Recovery project and will be updated moving forward. A similar file will be created for each grant received. Estimated Completion Date of Corrective Action: File started for Orestimba Creek.

View Audit 363149

Finding 572035 (2024-001)

None 2024

International Social Service United States of America Branch, Inc.

MD

Reporting

Finding 2024-001: Reporting Criteria: ISS-USA is responsible for submitting the quarterly Federal Financial Reports (FFR) SF-425 to report cumulative expenses incurred under the award. Action Taken: To address financial staff turnover, we have engaged a third-party consultant to assist with federal ...

Finding 2024-001: Reporting Criteria: ISS-USA is responsible for submitting the quarterly Federal Financial Reports (FFR) SF-425 to report cumulative expenses incurred under the award. Action Taken: To address financial staff turnover, we have engaged a third-party consultant to assist with federal grant accounting and reporting compliance. Contact: Julie Gilbert Rosicky, Chief Executive Officer Anticipated Completion Date: June 1, 2025

View Audit 363143

Finding 572008 (2024-001)

Significant Deficiency 2024

Oak Lawn-Hometown School District 123

IL

Reporting § 200.512

Identifying Number: 2024-001 Finding: Untimely Submission of the 2024 Single Audit Reporting Package Corrective Action Taken or Planned: As part of the policies and procedures update, the Business Office has included a section on compliance, with the creation of a compliance calendar to ensure ...

Identifying Number: 2024-001 Finding: Untimely Submission of the 2024 Single Audit Reporting Package Corrective Action Taken or Planned: As part of the policies and procedures update, the Business Office has included a section on compliance, with the creation of a compliance calendar to ensure all filings are completed on a timely basis. The Business Office will continue to follow internal policies and procedures, including deadlines for fiscal year-end process. Contact Person Responsible for Corrective Action Plan: Mike Loftin, Assistant Director and Chief School Business Official Completion Date: December 31, 2025

View Audit 363136

Finding 572007 (2024-001)

None 2024

City of Balch Springs, Texas

TX

Reporting

Planned Corrective Action: The City took appropriate steps to train and support the Director of Finance position, and then ultimately replaced the position with an Interim Chief Financial Officer. The Interim CFO will submit the Project & Expenditure Report by the 2025 reporting deadline (April 30, ...

Planned Corrective Action: The City took appropriate steps to train and support the Director of Finance position, and then ultimately replaced the position with an Interim Chief Financial Officer. The Interim CFO will submit the Project & Expenditure Report by the 2025 reporting deadline (April 30, 2025). Responsible Officials: Tanangelia Beatty, Interim Chief Financial Officer Denys Pratt, Chief Administrative Officer Planned Completion Date: April 30, 2025

View Audit 363130

Finding 572006 (2024-004)

Material Weakness 2024

Community Partnership, Inc.

PA

Questioned Costs Special Tests & Provisions Internal Control / Segregation of Duties

FINDING: 2024-004 Internal Control and Compliance over Special Tests and Provisions Recommendation: We recommend the Partnership establish policies and procedures to ensure that the Tri-Partite board requirements are followed. Action taken: CP staff continue to work with our state technical assist...

FINDING: 2024-004 Internal Control and Compliance over Special Tests and Provisions Recommendation: We recommend the Partnership establish policies and procedures to ensure that the Tri-Partite board requirements are followed. Action taken: CP staff continue to work with our state technical assistance provider and the Board of Directors to ensure that tri-partite requirements are met. The board recently updated its bylaws to reflect changes in the required number of board members, and CP has increased its visibility in the community. CP acknowledges that the elected official component of the board remains difficult to fill.

View Audit 363115 Questioned Costs: $1

Finding 572005 (2024-003)

Material Weakness 2024

United Community Center, Inc.

WI

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

The Organization acknowledges the finding. This was an isolated clerical error made by the staff responsible for preparing the reimbursement documentation. Although an employee already fully allocated to other programs was mistakenly included in the claim, the Organization had sufficient allowable p...

The Organization acknowledges the finding. This was an isolated clerical error made by the staff responsible for preparing the reimbursement documentation. Although an employee already fully allocated to other programs was mistakenly included in the claim, the Organization had sufficient allowable personnel expenses from other staff who were not fully allocated to federal programs. These resources could have been properly used to support the claim. Program operations continued without disruption and were not affected in any way, as there were adequate personnel costs available to sustain the program throughout the period. To prevent recurrence, the Organization is reviewing and strengthening its internal review procedures related to grant allocations and payroll backup. Additional training and oversight will be provided to ensure that future claims are accurately supported by allowable personnel costs.

View Audit 363112 Questioned Costs: $1

Finding 572004 (2024-001)

Material Weakness 2024

City of Liberty, Missouri

MO

Procurement, Suspension & Debarment § 200.214 § 200.303

Personnel Responsible for Corrective Action – Accounting Manager – Jenny Trout Anticipated Completion Date – 07/10/2025 Corrective Action Plan – Debarment should be checked prior to purchasing or contracting with any entity or agency to ensure the entity or agency has not been Debarred or ...

Personnel Responsible for Corrective Action – Accounting Manager – Jenny Trout Anticipated Completion Date – 07/10/2025 Corrective Action Plan – Debarment should be checked prior to purchasing or contracting with any entity or agency to ensure the entity or agency has not been Debarred or Suspended by the federal government at the System for Award Management (SAM.gov) website (http://www.sam.gov/). The SAM website must be checked to verify the entity or agency has not been Debarred or Suspended prior to entering into an award with an entity or agency with federal dollars, and annually checked for the life of the Federally Funded award, and documented with a screenshot of the documentation. If at any time the SAM.gov website indicates the subrecipient has active exclusions, no invoices will be paid until the entity or agency is removed from the exclusion listing. The City of Liberty will expand this policy to check every vendor that we enter into contract with prior to contract approval. This will be a joint effort of the Director of each department, our Deputy City Clerk, and our Accounting Manager.

View Audit 363110

Finding 571996 (2024-002)

Material Weakness 2024

South O'Brien Community School District

IA

As a small district, we continue to monitor segregation of duties to the best of our abilities. Staff is limited, and with limited increases to state funding, segregating duties is difficult. The Superintendent and Board will continue to review the District’s financials, accounts payable, and payr...

As a small district, we continue to monitor segregation of duties to the best of our abilities. Staff is limited, and with limited increases to state funding, segregating duties is difficult. The Superintendent and Board will continue to review the District’s financials, accounts payable, and payroll statements and reports. The District has also sought to increase operational sharing opportunities in fiscal year 2026 and beyond that could improve segregation of duties.

View Audit 363095

Finding 571995 (2024-005)

Material Weakness 2024

Municipality of Barceloneta

PR

Equipment & Real Property Management

In all monitoring conducted by all required agencies, there have been no indications of insufficient control over personal and capital properties associated with any of the state or federal funds. Any clerical errors identified, as mentioned in the Management Respond of finding 2024-002, will be add...

In all monitoring conducted by all required agencies, there have been no indications of insufficient control over personal and capital properties associated with any of the state or federal funds. Any clerical errors identified, as mentioned in the Management Respond of finding 2024-002, will be addressed as a priority prior to the upcoming audit.

View Audit 363092

Finding 571994 (2024-003)

Material Weakness 2024

Municipality of Barceloneta

PR

Reporting

The municipal management, especially the Finance Department, is addressing this situation with the level of responsibility it requires. Therefore, I undertake to thoroughly evaluate all internal areas involved, as well as the performance of consulting and auditing firms, with the aim of implementing...

The municipal management, especially the Finance Department, is addressing this situation with the level of responsibility it requires. Therefore, I undertake to thoroughly evaluate all internal areas involved, as well as the performance of consulting and auditing firms, with the aim of implementing the necessary corrections and adjustments to prevent this situation from happening again in the future.

View Audit 363092

Finding 571993 (2024-004)

Material Weakness 2024

Municipality of Barceloneta

PR

HUD Housing Programs Reporting

We recommend of the municipality has issued clear and specific instructions to the director of this area, demanding that she and her team take immediate measures to ensure that these types of findings are not repeated in future fiscal periods or in the years to come.

View Audit 363092

Finding 571982 (2024-003)

Significant Deficiency 2024

City of Coral Gables, Florida

FL

Allowable Costs / Cost Principles Eligibility Significant Deficiency § 200.512

Management acknowledges that the City’s audit package and Data Collection Form were not submitted timely to the Federal Audit Clearinghouse within the required timeframe in accordance with Uniform Guidance (2 CFR 200.512). We understand the importance of timely submission in maintaining compliance w...

Management acknowledges that the City’s audit package and Data Collection Form were not submitted timely to the Federal Audit Clearinghouse within the required timeframe in accordance with Uniform Guidance (2 CFR 200.512). We understand the importance of timely submission in maintaining compliance with federal grant requirements and ensuring continued eligibility for federal funding. The delay was due to new ERP system conversion and staffing shortages. We will re-evaluate our current processes and ensure that all deadlines associated with the Single Audit process are clearly documented and monitored. We will conduct internal reviews after each year-end closing to ensure audit-related deadlines are met and updates will be provided to senior leadership as needed. We will strengthen internal controls and improve communication with our auditors to avoid future delays in submission to the Federal Audit Clearinghouse. Anticipated Completion Date: 7/31/2025 Person Responsible: Diana Gomez, Finance Director

View Audit 363084

Finding 571981 (2024-004)

Significant Deficiency 2024

Will County

IL

Subrecipient Monitoring § 200.332

Corrective Action Plan for Finding 2024-004 Contact person Responsible for Corrective Action: Karen Hennessy Contact Phone Number: 815 774-6359 Views of Responsible Official: We concur with the finding and offer the following context and corrective action plan: Condition: During our audit of the...

Corrective Action Plan for Finding 2024-004 Contact person Responsible for Corrective Action: Karen Hennessy Contact Phone Number: 815 774-6359 Views of Responsible Official: We concur with the finding and offer the following context and corrective action plan: Condition: During our audit of the County’s administration of federal funds under the CSLFRF program, we noted that the County did not have a documented process in place to track and maintain copies of Single Audit reports for subrecipients to whom it awarded federal funds. Specifically, the County was unable to provide evidence that it had obtained and reviewed Single Audit reports for any of its subrecipients during the audit period. Description of Corrective Action Plan: The county will create a tracking document that provides the following: -All CSLFRF (ARPA) subrecipients -Amounts and types of all CSLFRF allocations to the subrecipient -The fiscal cycle of the subrecipient -The date the annual financial statement was received -The person receiving the file -The file name and location -An indication if the subrecipient meets the threshold to have a single audit (not based on the amount allocated by the county) -If a single audit is required a copy will be requested from the subrecipient or from the Federal Clearing House -The date the Single Audit report was received -The name of the person receiving the file -The file name and location -The name of the person completing the review of the Single Audit report to identify any findings related to CSLFRF -Notes regarding follow up due to findings related to CSLFRF Anticipated Completion Date: August 31, 2025

View Audit 363072

Finding 571980 (2024-003)

Significant Deficiency 2024

Will County

IL

Subrecipient Monitoring § 200.332

Corrective Action Plan for Finding 2024-003 Contact person Responsible for Corrective Action: Karen Hennessy Contact Phone Number: 815 774-6359 Views of Responsible Official: We concur with finding 2024-003 and offer the following context and corrective action plan: Condition: During our audit o...

Corrective Action Plan for Finding 2024-003 Contact person Responsible for Corrective Action: Karen Hennessy Contact Phone Number: 815 774-6359 Views of Responsible Official: We concur with finding 2024-003 and offer the following context and corrective action plan: Condition: During our audit of the County’s administration of federal funds under the CSLFRF program, we noted the County failed to provide a subrecipient agreement to two subrecipient entities that would have included appropriate information related to federal award identification. Description of Corrective Action Plan: The County had all CSLFRF projects reviewed to confirm that the correct agreement type had been issued. The review found that 6 of the 56 projects had been issued a Beneficiary Agreement instead of a Subrecipient Agreement. Each of the 6 subrecipients has been contacted and provided with a Subrecipient Agreement. This corrects the finding. Completion Date: June 30, 2025

View Audit 363072

Finding 571979 (2024-002)

Significant Deficiency 2024

County of Calhoun

MI

Allowable Costs / Cost Principles

2024-002 - Lack of Independent Review and Approval of Reporting Auditor Description of Condition and Effect: During our audit procedures over the County's reporting process, we noted that none of the quarterly program and financial reports selected for testing included documentation that they were ...

2024-002 - Lack of Independent Review and Approval of Reporting Auditor Description of Condition and Effect: During our audit procedures over the County's reporting process, we noted that none of the quarterly program and financial reports selected for testing included documentation that they were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. As a result of this condition, the County was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Auditor Recommendation: We recommend that the County establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. Corrective Action: The County’s grant policy #241 requires review and approval of grant financial and programmatic reporting. Management will ensure fiscal and program managers countywide have procedures in place to complete and document these independent reviews. Responsible Person: Megan Banning, Assistant County Administrator Anticipated Completion Date: December 31, 2025

View Audit 363071

Finding 571978 (2024-001)

Significant Deficiency 2024

Honor Ehg INC

NY

Cash Management Internal Control / Segregation of Duties

Response to Schedule of Findings for the Year Ended December 31, 2024. 2024-001 TANF Voucher Controls The Administration of HONOR acknowledges the finding identified in the 2024 Financial Audit concerning the inadequacy regarding "TANF Voucher Controls". The following response outlines the steps t...

Response to Schedule of Findings for the Year Ended December 31, 2024. 2024-001 TANF Voucher Controls The Administration of HONOR acknowledges the finding identified in the 2024 Financial Audit concerning the inadequacy regarding "TANF Voucher Controls". The following response outlines the steps the HONOR Administration, and Management will take to address these issues and prevent recurrence. During the 2024 audit process, RBT identified the following Significant Deficiency: "Per the Orange County DSS contract, monthly vouchers are to be submitted with bed counts for reimbursement of shelter services provided." HONOR Executive Director, along with the assistance of the Administrative Team, conducted a thorough review to identify the root cause of this issue. - Inadequate Verification Processes: As outlined in audit by RBT there is not an internal control, (check and balances) comparing bed-sign in sheets, rosters, and vouchers. - Lack of consistency due to staff vacancy in the positions directly responsible for the successful and routine management and undertaking of the shelter census data. In response to the audit findings, the Executive Director, with the assistance of the Administrative Team, implemented the following corrective measures: -Ensure source documents are correct by providing comprehensive staff training: A training program will be initiated for all relevant staff, focusing on this regulatory required task. Staff will receive in-depth training on nightly bed sheets and data entry of client attendance in the EMR system, (NETSMART), to generate an accurate attendance roster. - Revamping Verification Procedures: HONOR has designated a position, Administrative Response Coordinator, to be responsible for verifying the nightly bed sheets and roster at the end of the month. Any discrepancies are reported to the Shelter Manager for verification. If changes are to be made, documentation will be made on the bed sheets and data entry will be corrected in NETSMART and roster reprinted. -HONOR has created a billing cover sheet that the designated program administrator will complete when billing is submitted to the fiscal office. Signatures indicating approval for billing after a review of documentation are required. Billing will not be accepted without the form attached. (attached) Forms will be distributed at the next scheduled Management Team Meeting. Explanation and training will be included. -Periodic Reviews: The Executive Director will Chair, with the assistance of the Administrative Team, a regular review process to monitor TANF voucher controls ensuring ongoing compliance and addressing any trends proactively. HONOR's Executive Director along with the Administration and Management teams take this audit finding seriously and are committed to strengthening our internal controls to prevent future incidents. The steps outlined above will help us maintain compliance and ensure the proper use of resources. HONOR thanks RBT for their due diligence in bringing this matter to our attention.

View Audit 363061

Finding 571970 (2024-001)

Significant Deficiency 2024

Population Services International

DC

Allowable Costs / Cost Principles Subrecipient Monitoring Period of Performance

Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles   Contact: Chad Bender   Title: Controller  Phone Number: 202-785-0072 Estimated Completion Date – ongoing  Corrective Action  The results of the 2024 audit will be sh...

Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles   Contact: Chad Bender   Title: Controller  Phone Number: 202-785-0072 Estimated Completion Date – ongoing  Corrective Action  The results of the 2024 audit will be shared with appropriate staff and reiterated in training to ensure that adequate attention and guidance is provided on recording expenses within the correct accounting period. PSI delivers in person training to its global finance and program staff and will continue to offer training during 2025 to address such issues.

View Audit 363060

Finding 571969 (2024-002)

Significant Deficiency 2024

Population Services International

DC

Procurement, Suspension & Debarment

Internal Control over Compliance and Compliance with Procurement Requirement   Contact: Munish Mehrotra Title: Director, Procurement and Logistics  Phone Number: 202-235-1954  Estimated Completion Date – ongoing  Corrective Action  PSI will share the 2024 audit results with staff for the awa...

Internal Control over Compliance and Compliance with Procurement Requirement   Contact: Munish Mehrotra Title: Director, Procurement and Logistics  Phone Number: 202-235-1954  Estimated Completion Date – ongoing  Corrective Action  PSI will share the 2024 audit results with staff for the awareness of nature and impact of the finding. The findings will be reiterated in training and guidance provided to adhere with PSI’s procurement policies. PSI delivers in person training to its global finance staff and will continue to offer training during 2025 to address such issues.

View Audit 363060

Finding 571966 (2024-005)

Significant Deficiency 2024

Population Services International

DC

Questioned Costs Subrecipient Monitoring Period of Performance

Internal Controls over Compliance and Compliance with the Period of Performance Compliance Requirement     Contact: Chad Bender  Title: Controller  Phone Number: 202-785-0072  Estimated Completion Date – done  Corrective Action  The results of the 2024 audit will be shared with appropriate s...

Internal Controls over Compliance and Compliance with the Period of Performance Compliance Requirement     Contact: Chad Bender  Title: Controller  Phone Number: 202-785-0072  Estimated Completion Date – done  Corrective Action  The results of the 2024 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. PSI delivers in person training to its global finance and program staff and will continue to offer training during 2025 to address such issues.

View Audit 363060 Questioned Costs: $1

Finding 571965 (2024-004)

Significant Deficiency 2024

Population Services International

DC

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

Allegations of Fraud    Contact: Chad Bender Title: Controller Phone Number: 202 785-0072 Estimated Completion Date – ongoing   Corrective Action  PSI keeps managing fraud risk through combination of preventative, detective and monitoring controls, and reinforces PSI’s expectations regarding ...

Allegations of Fraud    Contact: Chad Bender Title: Controller Phone Number: 202 785-0072 Estimated Completion Date – ongoing   Corrective Action  PSI keeps managing fraud risk through combination of preventative, detective and monitoring controls, and reinforces PSI’s expectations regarding ethical behavior through training and communications. PSI will continue to proactively report and investigate allegations of fraud and to raise awareness of the actions to be taken when there is suspicion of fraud. PSI Global Internal Audit and Investigations team will continue to share lessons learned from the work performed. Given the challenging operating environments in which PSI implements its programs, there is an ongoing risk of fraud, which PSI actively monitors, investigates, and mitigates.

View Audit 363060

Finding 571964 (2024-003)

Significant Deficiency 2024

Population Services International

DC

Cash Management

Internal Control over Compliance and Compliance with Cash Management Requirements  Contact: Chad Bender  Title: Controller  Phone Number: 202-785-0072 Estimated Completion Date – ongoing  Corrective Action  During 2024, PSI refined its method for calculating drawdowns on federal awards in re...

Internal Control over Compliance and Compliance with Cash Management Requirements  Contact: Chad Bender  Title: Controller  Phone Number: 202-785-0072 Estimated Completion Date – ongoing  Corrective Action  During 2024, PSI refined its method for calculating drawdowns on federal awards in response to the 2023-03 finding and has worked with the Program Management Teams on the monthly cash projections. This led to more accurate drawdown calculations in the latter half of 2024. PSI will continue training with the Program Management Teams and cash projections in 2025.

View Audit 363060

Finding 571962 (2024-001)

Significant Deficiency 2024

Pacific Union College

CA

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Pacific Union College transmits enrollment information to NSDLS through the National Student Clearinghouse (NCS), a third-party organization. PUC was faced with an unprecedented series of events related to data reporting to the National Student Clearinghouse between January and May 2024. During the ...

Pacific Union College transmits enrollment information to NSDLS through the National Student Clearinghouse (NCS), a third-party organization. PUC was faced with an unprecedented series of events related to data reporting to the National Student Clearinghouse between January and May 2024. During the month of February 2024, the College Registrar resigned without notice and the Director of Institutional Research tragically passed away within one ten day period. At that time the Director of College Admissions was asked to serve as the emergency Registrar and emergency IR Director. The above events led to some gaps in reporting to the NSC during the months noted above including some gaps in reporting that had occurred before the Registrar resigned. Communication with the NSC began immediately and during this time a series of reporting deadlines were “forgiven” by the NSC liaisons in support of PUC during a difficult series of one time events. Since the above dates PUC has been consistent and timely with all reporting to the NSC and the college anticipates that current staffing levels and cross training will prevent any such occurrences in the future.

View Audit 363053

Finding 571953 (2024-001)

Significant Deficiency 2024

Bay County

MI

Reporting

Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following is the finding as noted in Bay County’s Single Audit report for the year ended December 31, 2024, and corrective action to be completed. 2024-001 – Variance in Quarterly Reporting Auditor Descript...

Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following is the finding as noted in Bay County’s Single Audit report for the year ended December 31, 2024, and corrective action to be completed. 2024-001 – Variance in Quarterly Reporting Auditor Description of Condition and Effect: During the audit, we noted a variance between amounts reported in all quarterly P&E reports and amounts recorded in the general ledger and presented on the schedule of expenditures of federal awards (SEFA) for fiscal year 2024. This resulted in an overall total difference of $320,511 between the 2024 P&E reports and the County's general ledger and SEFA. Auditor Recommendation: We recommend that the County reconcile quarterly P&E reporting with amounts in the general ledger to ensure that all expenditures reported are classified in the correct project category on the P&E reporting and in the correct reporting period. We recommend an independent review is completed to ensure the reporting is accurate. Corrective Action: Management will conduct the final review and cross-check between the general ledger entries and amounts reported on the quarterly P&E reports to ensure accuracy in the amounts reported for the period. Responsible Person: Scott Trepkowski, Finance Officer Anticipated Completion Date: 12/31/2025

View Audit 363050

Corrective Action Plans

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