Corrective Action Plans

Finding 16101 (2022-002)

Material Weakness 2022

George Corley Wallace State Community College

AL

Cash Management Reporting Matching / Level of Effort / Earmarking § 200.305

Section III-Federal Awards Findings and Questioned Costs 2022-002 coy10-12 Higher Education Emergency Relief t'und fHEERF} Condition: Criteria: Repeat finding. The College did not have adequate internal controls in place to ensure proper record keeping for grant funds. U. S. Department of Education ...

Section III-Federal Awards Findings and Questioned Costs 2022-002 coy10-12 Higher Education Emergency Relief t'und fHEERF} Condition: Criteria: Repeat finding. The College did not have adequate internal controls in place to ensure proper record keeping for grant funds. U. S. Department of Education cash management requirements are consistent with 2 CFR 200.305 which requires a grantee minimize the time elapsing between the transfer of funds from the United States Treasury and the disbursement by the non-Federal entity. According to the Higher Education Emergency Relief Fund (HEERF) II Frequently Asked Questions (FAQ) #17, grantees must pay the incurred obligation (liquidate) within 3 calendar days for HEERF ALN 84.425F (Institutional Portion) and within 15 days for HEERF ALN 84.425E (Student Portion) of receiving the funds. The design and implementation of proper internal controls and the corresponding proper record keeping procedures are essential to comply with cash management requirements. Cause: Effect: Recommendation: Views of Responsible Officials: Corrective Action Plan: It was determined that the College drew down funds expended under both ALN 84.425E and ALN 84.425F from the wrong grants management system accounts. A portion of expenses for ALN 84.425E were drawn from and/or were recorded to the sub-fund for ALN 84.425F and a portion of expenses for ALN 84.425F were drawn from and/or were recorded to the sub-fund for ALN 84.425E. This incorrect recording resulted in substantial positive cash balances reported during the fiscal year under ALN 84.425F which were mostly offset with substantial negative cash balances reported under ALN 84.425E. However, at one point during the fiscal year, this incorrect reporting and drawing down of funds resulted in an overall substantial cash balance recorded for the combined funds." Due to a lack of properly designed and implemented internal controls, even though based on our test, there were no repeat instances of the College drawing down funds from the wrong grants, it was determined that the College has not put proper controls in place as of September 30, 2022 to sufficiently eliminate this finding in the current audit period. The College should design and implement internal controls to ensure proper record keeping for grant funds and monitor cash balances by individual grants. Management agrees with this finding and has taken corrective action. The College will ensure that employees who are responsible for the administration of the Higher Education Emergency Relief Fund (HEERF) grants are properly trained on allowable uses of those funds and on correct administrative procedures relating to the administration of these funds. This will be accomplished individually through training and education via various sources, including the U.S. Department of Education's published guidance and previously provided guidance from the Alabama Community College System. In addition to this training, additional internal control processes will be implemented to ensure that HEERF grant funds comply with cash management requirements and are liquidated within the prescribed timeframe. Additional review and approval procedures will be implemented to ensure that funds are drawn down from the correct grants management system accounts. These internal control processes, procedures and training will ensure proper record keeping for grant funds and proper monitoring of cash balances by individual grants.

View Audit 22310

Finding 16096 (2022-001)

Significant Deficiency 2022

Aguila Elementary School District No. 63

AZ

Reporting

Planned Corrective Action Plan: We monitored federal grant expenditures and if it is not expected that expenditures will exceed $750,000 for the fiscal year ending June 30, 2023. The District has procured audit services for the following two years, and auditor will be available if an additional si...

Planned Corrective Action Plan: We monitored federal grant expenditures and if it is not expected that expenditures will exceed $750,000 for the fiscal year ending June 30, 2023. The District has procured audit services for the following two years, and auditor will be available if an additional single audit is expected. Anticipated Completion Date: June 30, 2023 Responsible Contact Person: Jamie Rivas, Business Manager

View Audit 21391

Finding 16095 (2022-002)

Material Weakness 2022

South San Francisco Unified School District

CA

Equipment & Real Property Management Questioned Costs Procurement, Suspension & Debarment

Due to the need to get the hotspots out to the students quickly for virtual learning during the pandemic, staff was not able to maintain very good record-keeping of the devices distributed, which is required to meet the very strict requirements of this new grant funding. For similar grants in the fu...

Due to the need to get the hotspots out to the students quickly for virtual learning during the pandemic, staff was not able to maintain very good record-keeping of the devices distributed, which is required to meet the very strict requirements of this new grant funding. For similar grants in the future, a designated individual will be assigned to oversee the distribution of devices at all sites in the district to ensure they are maintaining the required information.

View Audit 19597 Questioned Costs: $1

Finding 16089 (2022-003)

Significant Deficiency 2022

Guajome Park Academy

CA

Subrecipient Monitoring Reporting Significant Deficiency

We have hired Charterwise as our CPAs. They are charter school finance experts who provide support for a number of charter schools and they are familiar with the changing landscape that is school finance. They will be working with our payroll and finance team to provide monthly reports and updates t...

We have hired Charterwise as our CPAs. They are charter school finance experts who provide support for a number of charter schools and they are familiar with the changing landscape that is school finance. They will be working with our payroll and finance team to provide monthly reports and updates to help ensure that the closing process takes place more smoothly at the end of the fiscal year. These new processes will be installed and implemented this year and will be carried out by the same team next year which will lead to a continuity of services. Additionally, they will use those monthly reports along with a calendar that they have developed with key dates and deadlines to ensure all deadlines are met with accurate reporting.

View Audit 19591

Finding 16088 (2022-001)

Significant Deficiency 2022

Southern New Jersey Regional Early Intervention Collaborative, Inc.

NJ

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring

Southern New Jersey Regional Early Intervention Collaborative, Inc. has drafted a new policy and procedure ?new employee payroll processing?. The new policy ensures that there is a uniform mechanism for documenting, recording, and verifying all necessary employee information that is required to acc...

Southern New Jersey Regional Early Intervention Collaborative, Inc. has drafted a new policy and procedure ?new employee payroll processing?. The new policy ensures that there is a uniform mechanism for documenting, recording, and verifying all necessary employee information that is required to accurately enroll employees into the Asure payroll system. Employee who was underpaid was owed an additional $6.92 for each pay, for a total of 6 pay periods. The retro check was issued with the 9/16/2022 payroll. Jennifer Buzby, Executive Director will be responsible for the implementation of the corrective action plan

View Audit 19589

Finding 16082 (2022-002)

Significant Deficiency 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions § 200.1

Finding: The University of Washington did not have adequate internal controls to ensure key personnel commitments specified in grant proposals or awards were met. Questioned Costs: Assistance Listing # Various Amount $0 Status: Corrective action in progress Corrective Action: The Univer...

Finding: The University of Washington did not have adequate internal controls to ensure key personnel commitments specified in grant proposals or awards were met. Questioned Costs: Assistance Listing # Various Amount $0 Status: Corrective action in progress Corrective Action: The University has established internal controls to ensure compliance with key personnel program requirement through time and effort certifications, project reporting processes, and budget reconciliation requirements. Additionally, the University offers multiple training courses to research administrators and principal investigators (PI) on management of sponsored awards. The University agrees there are areas for improvement over staff and PI training, and resources available to monitor contribution and documentation of committed levels of time and effort. The University will implement the following improvements: ? Update training materials and provide additional training to PIs and key personnel on: o Documentation of time and effort. o Prior approval requirements for reductions in time and effort. ? Update guidance and instructions for time and effort certifications to ensure all personnel involvement in various grant programs is properly accounted for during the certification process. ? Develop exception reports to provide additional oversight to monitor deviations from committed time and effort for PIs and key personnel. Completion Date: Estimated February 2024 Agency Contact: Erick Winger Controller 4300 Roosevelt Way NE Seattle, WA 98195 (206) 543-5322 erickw@uw.edu

View Audit 23129

Finding 16066 (2022-070)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal requirements to ensure subrecipients of the Block Grants for Prevention and Treatment of Substance Abuse program received required risk assessments. Questioned Costs: Assistance Listing...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal requirements to ensure subrecipients of the Block Grants for Prevention and Treatment of Substance Abuse program received required risk assessments. Questioned Costs: Assistance Listing # 93.959 93.959 COVID-19 Status: Corrective action in progress Corrective Action: The Authority concurs with the audit recommendations and is in the process of centralizing procedures related to subrecipient monitoring. The Authority will develop procedures related to the agency-wide risk assessment process and ensure the assessment results are used to determine the subrecipient monitoring work that will be performed. The conditions noted in this finding were previously reported in findings 2021-060 and 2020-064. Completion Date: Estimated December 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129

Finding 16065 (2022-069)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure it filed accurate and timely reports required by the Federal Funding Accountability and Transparency Act for the Block Grants for Prevention and Treatment of Substance Abus...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure it filed accurate and timely reports required by the Federal Funding Accountability and Transparency Act for the Block Grants for Prevention and Treatment of Substance Abuse. Questioned Costs: Assistance Listing # 93.959 93.959 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Authority finalized procedures across divisions to ensure there are established internal controls over the Federal Funding Accountability and Transparency Act (FFATA) reporting. A workgroup was established and finalized the criteria for when FFATA reports are required. The Authority initiated this process for all subawards beginning July 1, 2022. The Authority implemented the following procedures to ensure compliance with the reporting requirements: ? Office of Contracts and Procurement includes a FFATA form as the last attachment in all subawards and ensures it is complete prior to forwarding it to Grants Accounting. ? Grants Accounting staff have been assigned and received training to routinely monitor FFATA contracts forwarded by the Office of Contracts and Procurement and enter agency information into the FFATA Subaward Reporting System. The implemented procedures were designed to ensure compliance with FFATA reporting requirements. The Authority will continue to provide training to staff involved in the process. The conditions noted in this finding were previously reported in finding 2021-058. Completion Date: July 2022 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129

Finding 16064 (2022-068)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring § 200.1 § 200.410

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure it met the earmarking requirement for the Block Grants for Prevention and Treatment of Substance Abuse. Questioned Costs: Assistance Listing # 93.959 93.959 COVID-19...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure it met the earmarking requirement for the Block Grants for Prevention and Treatment of Substance Abuse. Questioned Costs: Assistance Listing # 93.959 93.959 COVID-19 Amount $661 Status: Corrective action in progress Corrective Action: The Federal Financial Reporting unit will update procedures for preparing monthly earmarking tracking workbooks to ensure the Authority does not exceed the maximum allowable amount for administrative costs. The procedures will also include management review and approval of the earmarking tracking workbooks. The Authority processed subsequent adjustments reducing the administrative costs charged to the grant, which the auditors did not take into consideration. The Authority does not concur with the questioned costs identified in the audit and will confirm with the federal grantor that the questioned costs do not need to be repaid. The conditions noted in this finding were previously reported in finding 2021-056. Completion Date: Estimated September 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 16063 (2022-067)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.1 § 200.410 § 200.502

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure payments to providers for the Block Grants for Prevention and Treatment of Substance Abuse program were allowable and met period of performance requirements. Questioned ...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure payments to providers for the Block Grants for Prevention and Treatment of Substance Abuse program were allowable and met period of performance requirements. Questioned Costs: Assistance Listing # 93.959 93.959 COVID-19 Amount $19,959,714 Status: Corrective action in progress Corrective Action: The Authority partially concurs with the audit recommendations. The Authority concurs that expenditures for indirect charges were applied to the award, through the Authority?s cost allocation system, for activities that occurred after the period of performance. The Authority will develop written procedures to review allocation bases at the end of a grant period. The Authority does not concur with the audit exceptions related to two accruals recorded in the accounting system before the period of performance. As noted by the auditors, no payments were made on these accruals. The period of performance of the grant extends beyond the end of the state?s fiscal year. Invoices for the program continue to be received after fiscal year end and the cut-off date for reporting on the Schedule of Expenditures of Federal Awards. Staff review payments for grant allowability based on service month when invoices are received. The Authority does not concur with the questioned costs related to the year-end accruals and will verify with the grantor that questioned costs do not need to be repaid. The year-end accruals were solely recorded as estimates and were not used to make any program payments or draw funds from the grantor. While the year-end accruals may include some amounts beyond the state fiscal year, questioning the year-end accruals in their entirety is an overstatement of any potential error that was made. The Authority will update procedures for calculating year-end accruals to: ? Maintain all supporting documentation used to calculate the year-end accrual transactions. ? Maintain a workbook to calculate estimated expenditures to be accrued for the fiscal year. The conditions noted in this finding were previously reported in findings 2021-057 and 2020-059. Completion Date: Estimated September 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 16049 (2022-066)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.208 § 200.332 § 200.339 § 200.501 § 200.513

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal requirements to ensure subrecipients of the Block Grants for Community Mental Health Services program and the Block Grants for Prevention and Treatment of Substance Abuse program received...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal requirements to ensure subrecipients of the Block Grants for Community Mental Health Services program and the Block Grants for Prevention and Treatment of Substance Abuse program received required single audits, and that it appropriately followed up on findings and issued management decisions. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 93.959 93.959 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Authority concurs with the finding. The Authority will: ? Follow established procedures related to the agency-wide monitoring of subrecipients? single audits. ? Issue management decision letters for findings subrecipients received related to programs that are funded by the Authority?s pass-through federal funding. ? Evaluate corrective actions to ensure subrecipients adequately address audit recommendations. Completion Date: Estimated July 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129

Finding 16048 (2022-065)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure it filed accurate and timely reports required by the Federal Funding Accountability and Transparency Act for the Block Grants for Community Mental Health Services. Questi...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure it filed accurate and timely reports required by the Federal Funding Accountability and Transparency Act for the Block Grants for Community Mental Health Services. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 Status: Corrective action complete Corrective Action: The Authority finalized procedures across divisions to ensure there are established internal controls over the Federal Funding Accountability and Transparency Act (FFATA) reporting. A workgroup was established and finalized the criteria for when FFATA reports are required. The Authority initiated this process for all subawards beginning July 1, 2022. The Authority implemented the following procedures to ensure compliance with the reporting requirements: ? Office of Contracts and Procurement includes a FFATA form as the last attachment in all subawards and ensures it is complete prior to forwarding it to Grants Accounting. ? Grants Accounting staff have been assigned and received training to routinely monitor FFATA contracts forwarded by the Office of Contracts and Procurement and enter agency information into the FFATA Subaward Reporting System. The implemented procedures were designed to ensure compliance with FFATA reporting requirements. The Authority will continue to provide training to staff involved in the process. Completion Date: July 2022 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129

Finding 16047 (2022-064)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring

Finding: The Health Care Authority did not have adequate internal controls over level of effort requirements for the Block Grants for Community Mental Health Services program. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 Status: Corrective action complete Corrective Actio...

Finding: The Health Care Authority did not have adequate internal controls over level of effort requirements for the Block Grants for Community Mental Health Services program. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 Status: Corrective action complete Corrective Action: The Federal Financial Reporting unit updated procedures for preparing the quarterly level of effort tracking workbooks. The procedures were updated to include: ? Accurate and complete expenditure criteria for generating the reports used to prepare the workbooks. ? Required documented review and approval of the quarterly level of effort tracking workbooks. Completion Date: February 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129

Finding 16046 (2022-063)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.1 § 200.410 § 200.52

Finding: The Health Care Authority did not have adequate controls over and did not comply with requirements to ensure payments to providers for the Block Grants for Community Mental Health Services were allowable and met period of performance requirements. Questioned Costs: Assistance Listing # ...

Finding: The Health Care Authority did not have adequate controls over and did not comply with requirements to ensure payments to providers for the Block Grants for Community Mental Health Services were allowable and met period of performance requirements. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 Amount $8,668,982 Status: Corrective action in progress Corrective Action: The Authority partially concurs with the audit recommendations. The Authority will: ? Maintain all supporting documentation used to calculate the year-end accrual transactions. ? Maintain a workbook to calculate estimated expenditures to be accrued for the fiscal year. The Authority will continue to review payments for allowability and ensure they occur within the grant period. The period of performance of the grant extends beyond the end of the state?s fiscal year. Invoices for the program continue to be received after fiscal year end and the cut-off date for reporting on the Schedule of Expenditures of Federal Awards. The Authority does not concur with the questioned costs and will verify with the grantor that questioned costs do not need to be repaid. Completion Date: Estimated September 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 16036 (2022-055)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Allowable Costs / Cost Principles Questioned Costs Procurement, Suspension & Debarment § 200.1 § 200.410 § 200.516

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal provider eligibility requirements for the Medicaid and Children?s Health Insurance Program. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 93.775 93.777 93.777 COVID-...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal provider eligibility requirements for the Medicaid and Children?s Health Insurance Program. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 93.775 93.777 93.777 COVID-19 93.778 93.778 COVID-19 Status: Corrective action in progress Corrective Action: The Authority partially concurs with the finding. The Authority agrees that ProviderOne sends revalidation notifications one day after the due date rather than before the due date. A system revision to correct this issue is expected to be in place by the beginning of 2024. The Authority does not concur with the remainder of the audit finding as stated in the description of condition. The auditor did not provide sufficient information for the Authority to review the identified exceptions and associated questioned costs. Due to the lack of information provided, the Authority is unable to agree or disagree with the results of the audit. The Authority will work with the auditor to obtain sufficient supporting information to review the exceptions and questioned costs. Once this process is completed, the Authority will work with the Centers for Medicare & Medicaid Services on finding resolution. The conditions noted in this finding were previously reported in findings 2021-047, 2020-046, 2019-048, 2018-042, 2017-033, and 2016-035. The auditors determined 2016-035 as resolved. Completion Date: Estimated March 2024 Agency Contact: Kari Summerour, CPA External Audit Compliance Manager PO Box 45502 Olympia, WA 98504-5502 (360) 725-5337 Kari.Summerour@hca.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 16035 (2022-054)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

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

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with managed care financial audit requirements. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 93.775 93.777 93.777 COVID-19 93.778 93.778 COVID-19 Status: Corrective action com...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with managed care financial audit requirements. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 93.775 93.777 93.777 COVID-19 93.778 93.778 COVID-19 Status: Corrective action complete Corrective Action: The Authority implemented policies and procedures and established a process to: ? Collect audited financial reports annually from managed care organizations. ? Conduct audits of encounter and financial data no less than once every three years. Additionally, the Authority amended managed care contract language to include the following: ? Required managed care organizations to submit audited financial reports annually beginning in fiscal year 2023. ? Directed managed care organizations to follow the required timing and procedures for submitting audited financial reports. ? Clarified that failure to submit reports is sanctionable. The Authority also conducted an encounter validation audit and is conducting a financial report validation audit. These audits are completed in a frequency outlined in federal regulations. The conditions noted in this finding were previously reported in finding 2021-048. Completion Date: May 2022 Agency Contact: Kari Summerour, CPA External Audit Compliance Manager PO Box 45502 Olympia, WA 98504-5502 (360) 725-9586 Kari.Summerour@hca.wa.gov

View Audit 23129

Finding 16034 (2022-053)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring § 200.1 § 200.410 § 200.516

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure clients were eligible for the Children?s Health Insurance Program. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 Status: Corrective action not requi...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure clients were eligible for the Children?s Health Insurance Program. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 Status: Corrective action not required Corrective Action: The Authority does not concur with the finding. The Authority pursued and was notified of approval for the 1115 disaster waiver from the Centers for Medicare & Medicaid Services (CMS). The waiver will approve Children?s Health Insurance Program (CHIP) funding for clients aged 19 and over during the public health emergency, retroactive to March 18, 2020. Once the official approval letter is received from CMS, the issue will be resolved, and the approval letter will be provided to CMS Audit Resolution. The Children?s Health Insurance Program Reauthorization Act (CHIPRA) postpartum period is state-funded and the Authority processes manual journal vouchers to move federal funding to state funding each quarter. For this audit, the auditors did not allow sufficient time for accounting staff to provide the journal vouchers for inclusion in the audit results. The Authority will work with CMS during the audit resolution process and provide the journal vouchers as needed to demonstrate that state funds were used for the postpartum expenditures. Effective July 1, 2022, the Authority added coding to ProviderOne which automates the accounting process for CHIPRA postpartum client funding. The conditions noted in this finding were previously reported in finding 2021-046. Completion Date: Not applicable Agency Contact: Kari Summerour, CPA External Audit Compliance Manager PO Box 45502 Olympia, WA 98504-5502 (360) 725-9586 Kari.Summerour@hca.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 16024 (2022-001)

Significant Deficiency 2022

St. Louis Public School District

MI

School Nutrition Programs Special Tests & Provisions Cash Management

St. Louis Public Schools Correction Action Plan for audit finding number (2022-001) Responsible party: Charles Clevenger, Stacey Haag and Jennifer McKittrick Expected completion date: June 30, 2023 Excess fund balance of $48,421 in Food Service Fund To Whom it May Concern, The Superintendent and the...

St. Louis Public Schools Correction Action Plan for audit finding number (2022-001) Responsible party: Charles Clevenger, Stacey Haag and Jennifer McKittrick Expected completion date: June 30, 2023 Excess fund balance of $48,421 in Food Service Fund To Whom it May Concern, The Superintendent and the Food service director will be working together to purchase the following items immediately to spend down the excess fund balance in our food service fund prior to June 30, 2023. We will be looking at areas of improvement in our food service program such as replacing sections of ceiling. We will also be looking to purchase some additional equipment during this time frame, including garbage disposals.

View Audit 22895

Finding 16023 (2022-002)

Significant Deficiency 2022

Mille Lacs Energy Cooperative

MN

Reporting Questioned Costs Significant Deficiency

Finding 2022-002 Preparation of the Schedule of Expnditures of Federal Awards Significant Deficiency in Internal Control over Compliance Program Name: United States Department of Agriculture; Community-Oriented Connectivity Broadband Grant; Federal Assistance Listing #10.863 Finding Summary: The ...

Finding 2022-002 Preparation of the Schedule of Expnditures of Federal Awards Significant Deficiency in Internal Control over Compliance Program Name: United States Department of Agriculture; Community-Oriented Connectivity Broadband Grant; Federal Assistance Listing #10.863 Finding Summary: The Cooperative does not have an internal control system designed to provide for the preparation of the Schedule of Expenditures of Federal Awards. Responsible Individuals: Lincoln Messner, Accounting and Finance Manager Corrective Action Plan: Having auditors assist with preparing the schedule of expenditures of federal awards (SEFA) is not unusual. This finidng would generally be included as part of the financial statement audit under Government Auditing Standards (Yellowbook). As the financial statemetn audit had been issued prior to the compliance being completed, this finding needed to be identified seperately. Anticipated Completion Date: December 2023

View Audit 22300

Finding 16022 (2022-001)

None 2022

Berlin Borough School District

NJ

School Nutrition Programs

Since June 30, 2022, the District has purchased and replaced kitchen equipment, painted the cafeteria and kitchen area and charged cafeteria aides to reduce Net Cash by $87,195. This is in excess of the Net Cash Resources Finding of $83,790.

View Audit 21390

Finding 16021 (2022-005)

Significant Deficiency 2022

Harry S. Truman Community Development Corporation

MO

Subrecipient Monitoring Significant Deficiency

2022-05 Recommendation: The Organization is continuing to engage a third-party accounting firm to assist in recording accounting transactions for the Organization. Because the accounting firm has worked all year with the Organization expects the June 30, 2023, and future year-end closings to be pr...

2022-05 Recommendation: The Organization is continuing to engage a third-party accounting firm to assist in recording accounting transactions for the Organization. Because the accounting firm has worked all year with the Organization expects the June 30, 2023, and future year-end closings to be prepared and delivered to the CPA audit firm sooner so that the audit can be submitted to the Clearinghouse well in advance of the required due date. Corrective Action The Organization acknowledges the need for additional preparation and Planned: scheduling in order to allow the external audit to be completed in a timely manner. Anticipated The Organization is currently on pace to meet the Clearinghouse Implementation filing deadline. Date:

View Audit 19588

Finding 16020 (2022-004)

Material Weakness 2022

Harry S. Truman Community Development Corporation

MO

Subrecipient Monitoring Material Weakness

2022-04 Recommendation: The Organization should have a process for determining the proper valuation of donations depending upon the terms of the donation and date of receipt of the donation. Corrective Action We acknowledge that there is currently not a sufficient process in place Planne...

2022-04 Recommendation: The Organization should have a process for determining the proper valuation of donations depending upon the terms of the donation and date of receipt of the donation. Corrective Action We acknowledge that there is currently not a sufficient process in place Planned: to ensure that the value of the organization?s note receivable balances are properly recorded. A policy will be implemented to review the accounting records to ensure that the value of the organization?s note receivables balance properly recorded now that the Organization has staff and an outsourced accounting firm with the knowledge and skills to fulfill this need. Implementation This action plan is for the entity to adopt a policy to regularly review the accounting records and evaluate the value of promissory notes receivable Date: to determine current value of note and review evaluate any possible contingencies of the receivable. This policy is planned to be in place by 12/31/23.

View Audit 19588

Finding 16019 (2022-003)

Material Weakness 2022

Harry S. Truman Community Development Corporation

MO

Subrecipient Monitoring Material Weakness

2022-03 Recommendation: The Organization review its transactions for repairs and maintenance and obtain the fixed assets depreciation schedule in order to properly record real estate transactions. The Organization should review its transactions invoiced but not paid prior to year-end in order to p...

2022-03 Recommendation: The Organization review its transactions for repairs and maintenance and obtain the fixed assets depreciation schedule in order to properly record real estate transactions. The Organization should review its transactions invoiced but not paid prior to year-end in order to properly record accrued liabilities. Corrective Action We acknowledge that there is currently not a sufficient process in place Planned: to ensure that capital expenditures and accounts payable are properly recorded. A policy will be implemented to review the accounting records to ensure that capital expenditures and accounts payable are properly recorded now that the Organizations has staff and an outsourced accounting firm with the knowledge and skills to fulfill this need. Implementation This action plan is for the entity to adopt a policy to review repairs and Date: maintenance activity on a regular basis to determine what amounts need to be capitalized as a fixed asset to ensure proper treatment of activity. The entity will adopt a policy to review expenses invoiced but not yet paid to determine what amounts need to be accrued to ensure proper treatment of activity. This will be implemented by the entity by 12/31/23.

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Finding 16018 (2022-002)

Material Weakness 2022

Harry S. Truman Community Development Corporation

MO

Subrecipient Monitoring Material Weakness

2022-02 Recommendation: The Organization should obtain a legally binding document prior to recording a debt extinguishment. Corrective Action Planned: We acknowledge and will receive formal documentation that will legally forgive the debt or formalize the promissory note Anticipated ...

2022-02 Recommendation: The Organization should obtain a legally binding document prior to recording a debt extinguishment. Corrective Action Planned: We acknowledge and will receive formal documentation that will legally forgive the debt or formalize the promissory note Anticipated This action plan is ongoing as legally binding debt documentation is Implementation being obtained with continued oversight by management and the Board Date: of Directors.

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Finding 16017 (2022-001)

Material Weakness 2022

Harry S. Truman Community Development Corporation

MO

Subrecipient Monitoring Material Weakness

2022-01 Recommendation: The Organization should have a process for reviewing prior year balances in their Quickbooks Online accounting software to ensure that they match to the audited financial statements. The organization should refrain from making changes to their financials once financial stat...

2022-01 Recommendation: The Organization should have a process for reviewing prior year balances in their Quickbooks Online accounting software to ensure that they match to the audited financial statements. The organization should refrain from making changes to their financials once financial statements for the period under audit have been issued and closed. Corrective Action Planned: We acknowledge that there is currently not a sufficient process in place to review Quickbooks Online balances. A policy will be implemented to review prior year Quickbooks Online balances to ensure that they match to the audited financial statements now that the Organization has a Fiscal Officer with the knowledge and skills to fulfill this need. Anticipated This action plan is for the entity to adopt a policy to review Quickbooks Implementation Online balances at the end of each year to ensure that they tie to the Date: audited financial statements issued at the end of the year. This will be implemented by the entity by 6/30/23.

View Audit 19588

Corrective Action Plans

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