Corrective Action Plans

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The County established procedures in December 2025 to ensure all departments of the County are following the established County federal procurement policy.
The County established procedures in December 2025 to ensure all departments of the County are following the established County federal procurement policy.
The Authority utilizes the Board of Directors wherever possible to mitigate control risks associated with having a small staff.
The Authority utilizes the Board of Directors wherever possible to mitigate control risks associated with having a small staff.
Finding 2025–002: Material Journal Entries Condition: During our current year-end audit fieldwork, our testing resulted in material journal entries to be posted to properly state the City’s financial statements. Plan: The City Comptroller, along with staff, will review year-end adjustments as part o...
Finding 2025–002: Material Journal Entries Condition: During our current year-end audit fieldwork, our testing resulted in material journal entries to be posted to properly state the City’s financial statements. Plan: The City Comptroller, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. Anticipated Date of Completion: Fiscal Year Ending April 30, 2026 Name of Contact Person: Sheri Ray, Comptroller Management Response: Management acknowledges this finding and will work to correct it by the anticipated date of completion outlined above.
Finding 2025–001: Material Restatement to Fund Balance, Net Position, and Capital Assets Condition: During audit fieldwork, our testing resulted in a material restatement of Fund Balance, Net Position, and Capital Assets. Plan: The City will implement internal controls to properly record and adjust ...
Finding 2025–001: Material Restatement to Fund Balance, Net Position, and Capital Assets Condition: During audit fieldwork, our testing resulted in a material restatement of Fund Balance, Net Position, and Capital Assets. Plan: The City will implement internal controls to properly record and adjust necessary capital asset balances on a timely basis prior to audit fieldwork. Additionally, the City Comptroller will also provide monthly reviews of the financial statements. Anticipated Date of Completion: Fiscal Year Ending April 30, 2026 Name of Contact Person: Sheri Ray, Comptroller Management Response: Management acknowledges this finding and will work to correct it by the anticipated date of completion outlined above.
Finding 2025–003: Reporting Compliance Federal Agency: U.S. Department of Transportation Passthrough Entity: Illinois Department of Transportation Assistance Listing Number and Federal Program: 20.106 – Airport Improvement Program Condition: During our compliance procedures, we noted that the City d...
Finding 2025–003: Reporting Compliance Federal Agency: U.S. Department of Transportation Passthrough Entity: Illinois Department of Transportation Assistance Listing Number and Federal Program: 20.106 – Airport Improvement Program Condition: During our compliance procedures, we noted that the City did not complete, and submit in the proper time period, the necessary annual reports to the granting agency outlined in the Compliance Requirements shown in Uniform Guidance (2 CFR Part 200) for the Airport Improvement Program. Plan: The City Comptroller will meet with the Airport Director regularly to discuss the necessary reports required to be submitted to stay in compliance with the federal funding agency’s grant requirements. Prior to submission, the City Comptroller will review the reports with the Airport Director and then the necessary reports should be submitted on time and contain all the necessary information as outlined in the granting agency’s compliance requirements. Anticipated Date of Completion: Fiscal Year Ending April 30, 2026 Name of Contact Person: Sheri Ray, Comptroller Management Response: Management acknowledges this finding and will work to correct it by the anticipated date of completion outlined above.
Name of auditee: Niagara Community Action Program, Inc. TIN: 16-0919885 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: November 1, 2024 - October 31, 2025 CAP prepared by: Paul Wilson pwilson@niagaracap.org Finding 2025-001 Corrective Action Plan The Agency acknowledges and is a...
Name of auditee: Niagara Community Action Program, Inc. TIN: 16-0919885 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: November 1, 2024 - October 31, 2025 CAP prepared by: Paul Wilson pwilson@niagaracap.org Finding 2025-001 Corrective Action Plan The Agency acknowledges and is aware of this information in regards to the two files. Program departments are responsible for complete eligibility verification and documentation. Program personnel are trained and will continue to follow its policies and procedures to maintain complete eligibility documentation for future periods.
Management will review procedures related to monitoring interest earned on federal funds and consider whether additional steps may be helpful to track amounts relative to allowable limits under Uniform Guidance. Management notes that the excess interest identified was returned in accordance with fed...
Management will review procedures related to monitoring interest earned on federal funds and consider whether additional steps may be helpful to track amounts relative to allowable limits under Uniform Guidance. Management notes that the excess interest identified was returned in accordance with federal requirements.
Management will review grant reporting procedures and evaluate potential process refinements related to the calculation and inclusion of indirect costs with reimbursement requests, consistent with the approved indirect cost rate where applicable. The previous approach reflected a conservative decisi...
Management will review grant reporting procedures and evaluate potential process refinements related to the calculation and inclusion of indirect costs with reimbursement requests, consistent with the approved indirect cost rate where applicable. The previous approach reflected a conservative decision with respect to indirect cost recovery.
Management will review current grant tracking and reimbursement procedures and pursue improvements, as appropriate, to strengthen coordination across grant programs. Opportunities to enhance review processes prior to submission will also be considered to help minimize duplicate charges and support c...
Management will review current grant tracking and reimbursement procedures and pursue improvements, as appropriate, to strengthen coordination across grant programs. Opportunities to enhance review processes prior to submission will also be considered to help minimize duplicate charges and support compliance with federal requirements.
Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing Program including implementation of formal policies, reconciliation procedures, and enhanced oversight of interfund activi...
Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing Program including implementation of formal policies, reconciliation procedures, and enhanced oversight of interfund activity to ensure that established internal control policies are being followed on a timely basis. Steve Arlinghaus, Executive Director, is responsible for implementing this corrective action by June 30, 2026.
Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing Program including implementation of formal policies, reconciliation procedures, and enhanced oversight of interfund activi...
Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing Program including implementation of formal policies, reconciliation procedures, and enhanced oversight of interfund activity to ensure that established internal control policies are being followed on a timely basis. Steve Arlinghaus, Executive Director, is responsible for implementing this corrective action by June 30, 2026.
Finding: #2025-002- Time and Effort Reporting Assistance Listing/Program Title: #84.027 A/IDEA Flow Through and #84.173A/Preschool Entitlement (Special Education Cluster) Federal Agency/Pass-Through Entity: U.S Department of Education/Wisconsin Department of lnstruction Award Numbers/Year: 2025-1333...
Finding: #2025-002- Time and Effort Reporting Assistance Listing/Program Title: #84.027 A/IDEA Flow Through and #84.173A/Preschool Entitlement (Special Education Cluster) Federal Agency/Pass-Through Entity: U.S Department of Education/Wisconsin Department of lnstruction Award Numbers/Year: 2025-133332-DPI-FLOW-341 and 2025-133332-DPI-PRESCH-347/2024-2025 Criteria: In accordance with the federal Uniform Guidance, charges to federal awards for salaries and benefits must be based on records that accurately reflect the work performed. Such records must be supported by time and effort documentation. Condition: During the auditors' testing of payroll charges, it was noted that the District did not maintain adequate time and effmi documentation to support the allocation of salaries and benefits to the Special Education Cluster. Specifically, one employee's time was coded to the Special Education Cluster at a fixed 10% allocation. Cause: The District did not have adequate internal controls to ensure required time and effort documentation was consistently obtained and maintained for all employees whose salaries and benefits were charged to the Special Education Cluster. Staff turnover and lack of training contributed to inconsistent application of federal requirements. Effect: Because required time and effort documentation was not properly maintained, salaries and benefits charged to the Special Education Cluster may not accurately reflect actual time spent working on the program. As a result, these costs are unallowable under the Uniform Guidance. Questioned Costs: The absence of proper documentation results in questioned costs of $7,037, representing the salary and benefit amounts charged to the program for the one employee without adequate support. Recommendation: The auditor recommends that the District strengthen internal controls over time and effort reporting to ensure all employees funded in whole or in part by federal programs complete required documentation in accordance with Uniform Guidance. Additionally, a monitoring process should be implemented to ensure time distribution report is are completed accurately and retained in accordance with record-keeping requirements. Response: Management concurs with the finding and will implement internal control improvements to ensure full compliance with federal time and effort documentation requirements.
Finding #2025-001 - Material Audit Adjustments Criteria: Proper financial closing and year-end reconciliation procedures should be in place to identify and adjust the financial records to ensure the financial statements are fairly stated. Condition: The auditors proposed audit adjustments that, if n...
Finding #2025-001 - Material Audit Adjustments Criteria: Proper financial closing and year-end reconciliation procedures should be in place to identify and adjust the financial records to ensure the financial statements are fairly stated. Condition: The auditors proposed audit adjustments that, if not made, would have resulted in the financial statements being materially misstated. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to con-ect various transactions. The District's system of internal control may not prevent, detect, or correct misstatements in the financial statements. Financial reports generated by the accounting system may not provide an accurate reflection of the District's financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded and reconciled in a timely manner. Response: The District acknowledges their responsibility for the financial statements and recording of the current year activity. Going forward, the District will verify that all activity is completely and accurately recorded in the financial records and reflected on the financial statements.
Corrective Action Plan: The University accepts this finding and has removed the questioned costs from the award. Management will reinforce and reiterate the internal controls process to the staff responsible for the review of the grant expenditures during the financial reporting process. Management ...
Corrective Action Plan: The University accepts this finding and has removed the questioned costs from the award. Management will reinforce and reiterate the internal controls process to the staff responsible for the review of the grant expenditures during the financial reporting process. Management will also communicate via our Financial Administrative Bulletin to the grants administration community our internal controls around 2 CFR 200. Management will conduct 2 CFR 200 training with the impacted departmental grant administration by March 5, 2026 Completion Date: March 31, 2026 Contact Person: Paul Gasior 443-997-8141
Corrective Action Plan - Federal Award Finding Finding 2025-001 Federal Agency Name: US DOT, Federal Railroad Administration Assistance Listing: 20.325 Program Name: Consolidated Rail Infrastructure and Safety Improvements (CRISI) Initial Year Finding Occurred: Fiscal Year 2025 Reporting Finding Sum...
Corrective Action Plan - Federal Award Finding Finding 2025-001 Federal Agency Name: US DOT, Federal Railroad Administration Assistance Listing: 20.325 Program Name: Consolidated Rail Infrastructure and Safety Improvements (CRISI) Initial Year Finding Occurred: Fiscal Year 2025 Reporting Finding Summary: The auditor identified an instance in which one quarterly SF-425 (report) did not reflect cumulative federal cash receipts and disbursements as required by the reporting instructions. Instead, the report reflected only the current quarter's ended federal cash activity. No additional reporting errors were identified by the audit, and the other reporting lines were prepared correctly. Auditor’s Recommendation: The auditor recommends that management continue to strengthen review procedures over SF-425 preparation, including documented review of cumulative cash reporting and verification of all report attributes, particularly during periods when backup personnel are responsible for report preparation. Management’s Response: Management concurs that an error occurred on one SF-425 report for a single reporting period. The error occurred during a sta􀆯ing transition and involved a field that FRA does not require, and that had not historically been populated. Additionally, FRA and FTA use the same SF-425 form but apply di􀆯erent reporting conventions; FTA requires the field to be reported quarterly rather than cumulatively, which contributed to the confusion. As noted in the audit finding, this was a reporting error only. There were no questioned costs, no billing inaccuracies, and no impact on the underlying financial activity. Corrective Action: Management has implemented the following actions to prevent recurrence: • Updated internal procedures to clearly distinguish FRA and FTA reporting requirements. • Implemented a two-step review process in which one sta􀆯 member prepares all federal financial reports and a second sta􀆯 member performs an independent review prior to submission. • Expanded procedure on reporting when primary sta􀆯 are unavailable, including cross training and adding backup for both reporting and review. These actions strengthen internal controls, ensure consistency across federal reporting, and reduce the risk of future reporting discrepancies. Responsible Individual: Heather McKillop, Chief Financial O􀆯icer Anticipated Completion Date: March 2026
During fiscal year 2025, Kennedy Krieger Institute identified a control weakness with our established FFATA reporting control. After thorough review of active subaward agreements, Kennedy Krieger Institute identified two contracts that were not reported timely as the projects were not centrally mana...
During fiscal year 2025, Kennedy Krieger Institute identified a control weakness with our established FFATA reporting control. After thorough review of active subaward agreements, Kennedy Krieger Institute identified two contracts that were not reported timely as the projects were not centrally managed and therefore fell outside of its normal research administration process. Upon identification, Kennedy Krieger Institute promptly submitted the FFATA reports via SAM.gov. Kennedy Krieger Institute has since enhanced its FFATA reporting control through strengthened governance, system improvements, and expanded oversight. As part of the Institute’s Subaward Management processes, the FFATA reporting process has been clearly defined and communicated to all grant managers, ensuring that all subawards are maintained within a centralized sponsored projects reporting system (Fibi), regardless of the team responsible for award management. Fibi has been updated to include a required checkbox and date field indicating when FFATA reporting has been completed and the associated submission date. In addition, Kennedy Krieger Institute is working with system developers to implement a standard system-generated report that can be run monthly or on an ad hoc basis to identify all subawards subject to FFATA reporting, enabling Finance to validate completeness and timeliness across all areas. Finance will complete regular checks of subawards set up in the financial system of record in comparison to Fibi to ensure all subawards are being reported timely. These enhancements establish a checks and balances framework through clearly defined shared responsibilities and coordinated oversight between the Research Administration and Finance departments. This control enhancement was implemented for the January 2026 FFATA reporting cycle.
Management will prepare the schedule of expenditures of federal awards as part of the year end closing process to determine our audit requirements under the Uniform Guidance and provide the schedule to the audit firm during the financial audit process.
Management will prepare the schedule of expenditures of federal awards as part of the year end closing process to determine our audit requirements under the Uniform Guidance and provide the schedule to the audit firm during the financial audit process.
Finding 2025-001: Special Tests and Provisions: Enrollment Reporting Context/Condition: Of the 40 students selected for enrollment reporting testing, one (1) student graduation was reported to NSLDS outside the maximum 60-day window. Recommendation: The auditor recommended that the College review an...
Finding 2025-001: Special Tests and Provisions: Enrollment Reporting Context/Condition: Of the 40 students selected for enrollment reporting testing, one (1) student graduation was reported to NSLDS outside the maximum 60-day window. Recommendation: The auditor recommended that the College review and update internal controls to ensure student enrollment status in the National Student Loan Data System (NSLDS) is updated in a timely manner to ensure compliance with Federal requirements. Persons Responsible for Corrective Action: Registrar Liz Force Planned Corrective Action: The Registrar will update NSLDS reporting processes and controls to include detection controls to ensure all student graduations, including those occurring outside the traditional reporting window, are accurately and timely reported to the NSLDS within the maximum 60-day window. Anticipated Completion Date: December 31, 2025
Malama Honua Public Charter School Foundation (“MHPCS Foundation”) acknowledges the observation noted by the auditors regarding the timing of the advance drawdown received on February 7, 2025 and the subsequent disbursement on April 29, 2025. As described in the audit finding, the funds remained on ...
Malama Honua Public Charter School Foundation (“MHPCS Foundation”) acknowledges the observation noted by the auditors regarding the timing of the advance drawdown received on February 7, 2025 and the subsequent disbursement on April 29, 2025. As described in the audit finding, the funds remained on hand for approximately 81 days prior to disbursement, which exceeds the expectation under 2 CFR §200.305(b) that non-Federal entities minimize the time between the transfer of federal funds and their disbursement. Management notes that the timing of the disbursement occurred during a period of heightened uncertainty related to federal appropriations and funding continuity. During 2024 and early 2025, the federal government operated under a series of short-term Continuing Resolutions due to delays in the passage of full-year appropriations legislation. In early 2025, the federal government faced a potential shutdown while operating under temporary funding authority that extended through March 14, 2025. The uncertainty associated with these circumstances contributed to adjustments in project timelines, vendor invoicing schedules, and payment coordination. While these conditions affected the timing of project-related expenditures, MHPCS Foundation recognizes the importance of ensuring that federal drawdowns are aligned as closely as possible with immediate disbursement needs. MHPCS Foundation maintains internal financial management practices designed to support compliance with federal cash management requirements and has taken steps to strengthen documentation and oversight related to drawdown requests. As part of its corrective action plan, the Foundation has implemented procedures to ensure that advance payment requests are generally limited to anticipated expenditures expected to occur within approximately five to seven days, consistent with the objective of minimizing the time between the receipt and disbursement of federal funds. Prior to requesting a drawdown, the Project or Program Director prepares an itemized expenditure schedule identifying the anticipated immediate cash needs associated with the project or program budget. The itemized expenditure schedule is submitted to the Foundation’s Accountant for review. The Accountant verifies that the projected expenditures are consistent with the approved program budget and prepares a Drawdown Authorization Form documenting the requested advance payment. The Drawdown Authorization Form is then reviewed and approved by the Foundation’s Board President prior to submission of the draw request through the applicable federal payment system (e.g., G5). Following submission, confirmation of the draw request is attached to the authorization documentation and retained for accounting and audit purposes. This process provides documented support for draw requests, establishes multiple levels of review, and ensures that advance payments are supported by near-term disbursement forecasts. Advance payments outside of regular payroll cycles may occur only when supported by documented project or program expenditures and must follow the same authorization and documentation procedures described above. These strengthened procedures are intended to ensure that future drawdowns are aligned with immediate program needs and supported by documented payment schedules, thereby reinforcing compliance with 2 CFR §200.305(b) and related Uniform Guidance requirements. Management believes the procedures outlined above address the circumstances described in the finding and enhance the Foundation’s internal controls over federal cash management. The Foundation remains committed to maintaining strong financial stewardship and ensuring continued compliance with applicable federal regulations governing advance payments and cash management.
The audit finding regarding the ARPA reporting has been reviewed & acknowledged. In the future, the report will be carefully inspected to make sure all figures are correct at the time of the filing. In addition, this reporting for ARPA will be wrapping up shortly since the program is nearing complet...
The audit finding regarding the ARPA reporting has been reviewed & acknowledged. In the future, the report will be carefully inspected to make sure all figures are correct at the time of the filing. In addition, this reporting for ARPA will be wrapping up shortly since the program is nearing completion.
Name of Contact Person: Keri Jerrell, DSS Director Corrective Action Plan: 1. PII Policy Monitoring Development – DSS Program Managers will at random, each quarter, complete a walkthrough of their departments offices checking staff computers to ensure they are secured when they are away. Program man...
Name of Contact Person: Keri Jerrell, DSS Director Corrective Action Plan: 1. PII Policy Monitoring Development – DSS Program Managers will at random, each quarter, complete a walkthrough of their departments offices checking staff computers to ensure they are secured when they are away. Program managers will maintain a log of each inspection and document staff members out of compliance. Quarterly Reports will be sent to the DSS Business Officer for record keeping and audit reporting purposes. 2. Program managers will complete write-ups, and re-trainings with focus on the Security Implementations Policy for those found to be out of compliance. Quarterly reports, write-ups and retrainings will be reported to the DSS Director and Administrative Assistance for further review and decisions on whether or not further action needs to take place. Proposed Completion Date: Ongoing Monitoring Procedures
Views of Responsible Officials and Planned Corrective Action In coordination with detailed discussions with the auditors, DPS has determined that its existing quarterly reconciliation process within SHARE remains an appropriate and effective control for the preparation of the Schedule of Expenditure...
Views of Responsible Officials and Planned Corrective Action In coordination with detailed discussions with the auditors, DPS has determined that its existing quarterly reconciliation process within SHARE remains an appropriate and effective control for the preparation of the Schedule of Expenditures of Federal Awards (SEFA). This process is designed to review grant-related transactions for invoicing accuracy, monitoring, and compliance and provides reasonable assurance over grant oversight and expense allowability. In addition, at fiscal year-end, DPS will perform a SEFA-specific review from a revenue perspective to confirm that federal revenue recorded in the general ledger and reimbursement requests are complete, accurate, and consistent with grant-related expenditures. This layered review process is intended to identify and resolve any instances in which expenses may be evaluated or adjusted for reimbursement purposes while remaining appropriately recorded within grant activity in the accounting records. Management concurs that the expenditure amounts reported on DPS’ final SEFA submitted to auditors related to AL 97.036 Disaster Grants – Public Assistance (Presidentially Declared Disasters) were inaccurate. While DPS had carefully and accurately tracked the allowable expenditures of $583,271 for two FEMA events (DR 4795 Roswell South Fork Salt Fire $543,587.72 & DR 4843 NM Roswell Flood $39,683.22) and discussed in detail with the auditors how allowable costs were determined, our submitted SEFA had a formula error which resulted in the two FEMA events not being accurately included in the total. Furthermore, management concurs that the preparation and analysis of a revenue-based SEFA, performed in addition to the expenditure-based SEFA, resulted in net adjustments of $25,998 to the previously submitted FY25 SEFA. Management concurs that DPS did not have a pre-existing formal procedure specific to the receipt and processing of federally donated surplus and usable personal property at the time of this transaction. However, management emphasizes that the donation of three federally provided robots—valued by the donor at $150,000 each for a total of $450,000—was highly unusual in nature and outside the scope of DPS’s routine grant and property transactions. As a result, DPS undertook extensive research and consultation to ensure compliance with all applicable federal requirements, as well as GASB and GAAP standards, prior to final accounting and reporting treatment. Management has created procedures to ensure the donated assets are correctly valued and included in DPS’s capital asset listing. DPS will record the donated capital assets in the government wide financial statements as capital assets and record as a revenue and expense transaction in the fund financial statements. Management further notes that DPS will follow GASB 33 and GASB 72 for non-exchange transactions when this type of transaction reoccurs. Corrective Action Plan Timeline: Process for federally donated useable personal property/assets has been implemented as of December 1, 2025. Updated SEFA process to be completed no later than October 9, 2026. Designation Of Employee Position Responsible For Meeting Deadline: CFO Deputy ASD Director ASD Director
Views of Responsible Officials and Planned Corrective Actions Management concurs with the finding. The Department will fully implement the proposed entitywide reporting controls. The Grant Management Bureau will lead the implementation of the following measures to strengthen reporting compliance: • ...
Views of Responsible Officials and Planned Corrective Actions Management concurs with the finding. The Department will fully implement the proposed entitywide reporting controls. The Grant Management Bureau will lead the implementation of the following measures to strengthen reporting compliance: • Federal Grant Tracker/Checklist: An existing grant tracking spreadsheet will be utilized to monitor all federal grants and milestone dates, including SF-425 financial reports and progress-report due dates by award. The tracker will be maintained in a shared file accessible to grant managers and analysts. • Automated Reminders: Automated email alerts will be reviewed against the Federal Grant Tracker to ensure all awards are captured and deadlines are met. • Preparer Verification and Supervisory Review: Additional information fields will be incorporated into the Federal Grant Tracker to verify completeness and accuracy of each submission, along with documented supervisory review and approval. • Monthly Compliance Updates: A monthly summary will be presented to executive management, highlighting upcoming deadlines, submission status, and any exceptions. This information will be documented within the Federal Grant Tracker. • Evidence Retention: Supporting documentation, including SF-425 due dates and analyst/manager approval dates, will be recorded in the Federal Grant Tracker and retained for audit and verification purposes. The effectiveness of these measures will be assessed by achieving 100% on-time submissions for two consecutive quarters. We are committed to meeting this objective and ensuring consistent, timely, and accurate grant reporting across the organization. The Department expects to fully implement these measures by December 31, 2025, with implementation oversight assigned to the Chief Financial Officer and Grants Management Bureau Manager.
The KCS Special Education Department will undertake a new physical inventory of all IDEA equipment, updating any inaccurate asset numbers, serial numbers, and locations in the Incident IQ asset management system. Additionally, effective for FY 2027, the District will restructure the department by mo...
The KCS Special Education Department will undertake a new physical inventory of all IDEA equipment, updating any inaccurate asset numbers, serial numbers, and locations in the Incident IQ asset management system. Additionally, effective for FY 2027, the District will restructure the department by moving a Special Education IT Asset Management position under the supervision of the District Property Manager to ensure IDEA asset management is consistent with all district property management.
February 27, 2026 Re: Corrective Action Plan in response to Federal Single Audit Introduction On February 27, 2026, Crowe LLP issued the Independent Auditor’s Report as required and in accordance with the auditing standards generally accepted in the United States of America and the standards applica...
February 27, 2026 Re: Corrective Action Plan in response to Federal Single Audit Introduction On February 27, 2026, Crowe LLP issued the Independent Auditor’s Report as required and in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Controller General. The Corrective Action Plan, submitted by the City of Richardson more specifically, responds to the Report and outlines the City’s corrective action plans to address the finding. We again thank Crowe LLP for their hard work in this matter. This single audit has and will continue to serve as a roadmap for future financial operations. Finding 2025-001: Special Tests – Wage Rate Requirements – Significant Deficiency In two out of seven selections tested for required certified payrolls for contactor or subcontractor work performed during the fiscal year end September 30, 2025, the certified payrolls were not obtained by the City until subsequent to audit fieldwork. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Response: The City acknowledges that the required supporting documentation was not available at the time compliance testwork was completed by Crowe LLP. The City recognizes its responsibility to obtain and review certified payroll records from contractors and subcontractors for all laborers working on City grant funded projects to ensure wages and fringe benefits are paid in compliance with the Davis-Bacon Act. Corrective Action Plan: The City has an established Grants Management Policy and quarterly reporting from departments stating compliance with grant requirements. To strengthen compliance and address the documentation deficiency identified in the audit finding, the City will conduct mandatory training sessions with designated grant personnel in each department to reinforce policy requirements, required documentation standards, and applicable federal and state regulations, including certified payroll monitoring requirements where applicable. Training will be completed by June 30, 2026, and will be provided annually thereafter.The City will implement a grant review process that includes a master checklist to assist departments in verifying compliance prior to processing payments. The checklist will include verification that required supporting documentation, including certified payroll records when applicable, has been received, reviewed, and approved. Implementation of this checklist will occur by March 31, 2026. A centralized electronic repository will be established to allow Finance access to grant agreements, supporting documentation and relate records maintained by City departments. This control will be implemented by March 31, 2026. Additional internal controls will be incorporated into the financial software system to ensure that all required supporting documentation is attached and reviewed prior to payment approval. This control will be implemented by March 31, 2026. The City will conduct periodic internal compliance review testing of grants, including verification of required labor compliance documentation where applicable, to confirm ongoing adherence to federal and state regulations. Pre-award and post-award meetings will be held between Finance and the respective grant departments to establish reporting parameters, documentation requirements, monitoring responsibilities and compliance expectations prior to project implementation. When bids are solicited that include grant funding, the City will continue to communicate to all prospective bidders that compliance with all applicable federal and state laws and regulations, including labor standard requirements when applicable, is a condition of award. Bid documents will include a sample copy of the U.S. Department of Labor Davis-Bacon and Related Acts Weekly Certified Payroll form. Contact Person Responsible/Anticipated Completion Date: The Finance Director is responsible for oversight of this corrective action plan, with day-to-day management and implementation delegated to the Assistant Director of Finance. Implementation of these corrective actions is scheduled to begin immediately, with full completion anticipated by June 30, 2026. Once implemented, the procedures will be monitored on an ongoing basis to ensure continued compliance and to prevent recurrence of the finding.
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