Corrective Action Plans

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Finding Number: 2025-001 Condition: A sample of 11 vendors was selected, and documentation of procurement history was requested. For 1 of the 11 vendors selected, EES had not retained or was unable to provide documentation of the rationale for the purchase of an item deemed Sole Source. Additionally...
Finding Number: 2025-001 Condition: A sample of 11 vendors was selected, and documentation of procurement history was requested. For 1 of the 11 vendors selected, EES had not retained or was unable to provide documentation of the rationale for the purchase of an item deemed Sole Source. Additionally, a sample of 11 vendors was selected and documentation of the suspension and debarment check history was requested. For 2 of the 11 vendors selected, EES had not retained or was unable to provide documentation of the suspension and debarment check occurring before a contract was executed. Corrective Action: EES reviewed our Policies and Procedures for reasonableness and alignment with the Funding Terms and Conditions for the California Department of Education and the California Department of Social Services. Upon notification of the finding, EES immediately began to implement internal controls ensuring that appropriate documentation is in place that documents checking of vendors’ suspension and debarment status, and written justification that highlights criteria and proper documentary evidence that the procurement sole source methodology meets the above guidelines in order to conduct a sole source agreement for the organization. Contact person responsible for corrective action: James Masias, CFO Anticipated Completion Date: December 10, 2025
Finding During the federal award audit, it was noted that while the District followed procurement guidelines and procedures in the DJB Federal Procurement Policy, it does not have an established suspension and debarment procedure. Condition The District currently lacks a documented process to verify...
Finding During the federal award audit, it was noted that while the District followed procurement guidelines and procedures in the DJB Federal Procurement Policy, it does not have an established suspension and debarment procedure. Condition The District currently lacks a documented process to verify that vendors and subrecipients are not suspended or debarred from doing business with federal agencies. Criteria Under 2 CFR 200.214, non-federal entities are prohibited from entering into contracts or subawards with parties that are suspended or debarred from participation in federal programs. Cause The absence of a formal written procedure to verify vendor status prior to award or contract execution. Effect Without a documented procedure, there is a risk that contracts could be awarded to suspended or debarred entities, resulting in noncompliance with federal regulations. Corrective Action The District will formally adopt a Suspension and Debarment Verification Procedure that outlines the required process for verifying all vendors and subrecipients before entering into any contract funded by federal awards. Staff will verify suspension and debarment status by checking the System for Award Management (SAM.gov) prior to contract execution and will maintain documentation of verification in the procurement file. The Business Services Department will complete training on the new procedure and documentation requirements. Responsible Party: Business Manager Completion Date: Procedure adoption and staff training by December 31, 2025
The District implemented the Community Eligibility Provision (CEP) beginning in FY 2025, providing free breakfast and lunch districtwide. Prior to CEP implementation, all students were required to enter Student ID information at the point of sale, which automatically generated accurate CN-6 and CN-7...
The District implemented the Community Eligibility Provision (CEP) beginning in FY 2025, providing free breakfast and lunch districtwide. Prior to CEP implementation, all students were required to enter Student ID information at the point of sale, which automatically generated accurate CN-6 and CN-7 reports used for reimbursement claims. With the implementation of CEP, the Food Service Director eliminated Student ID entry at the cash register for grades K-5 to simplify service for younger students and improve meal service efficiency. As permitted by Ohio Department of Education and Workforce (DEW), the District transitioned to using daily paper count sheets to record meals served. This manual process required accurate daily calculations, which introduced risk due to the absence of automated checks. Because the District had historically relied on automated point-of-sale reports, the Assistant Treasurer did not independently recalculate or verify the CN-6 and CN-7 meal counts prior to submission in CRRS. As a result, inaccuracies occurred in multiple monthly reimbursement claims. Effective November 1, 2025, the District implemented corrective measures to strengthen internal controls over meal counting and claiming. The daily count sheets were converted from a paper format to an Excel-based worksheet with built-in formulas to ensure accurate calculation of daily and monthly meal totals for CN-6 and CN-7 reporting. The Food Service Director is responsible for completing the daily count sheets and ensuring that daily totals align with CN-6 and CN-7 report data. The Assistant Treasurer has been designated as the responsible individual for reviewing CN-6 and CN-7 reports and verifying that reported meal counts agree to the reimbursement claim submitted in CRRS prior to submission. These corrective actions establish segregation of duties, improve calculation accuracy, and ensure required internal controls are in place to comply with 7 CFR § 210.8(a) and 7 CFR § 220.11(b). The District believes these measures adequately address the audit finding and will prevent recurrence of meal count inaccuracies in future reimbursement claims.
Name of Contact Person: Rance Phillips, Mayor. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations guidelines. Corrective Action: We agree with the finding and the Data Collection form will ...
Name of Contact Person: Rance Phillips, Mayor. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations guidelines. Corrective Action: We agree with the finding and the Data Collection form will be filed in a timely manner. Proposed Completion Date: Immediately.
Friends University Year Ended June 30, 2025 Corrective Action Plan Finding Reference Number – 2025-001 Criteria or Specific Requirement – Special Tests and Provisions - Return of Title IV Funds (34 CFR section 668.22) (Reference number 2025-001) Recommendation – The University should take appropriat...
Friends University Year Ended June 30, 2025 Corrective Action Plan Finding Reference Number – 2025-001 Criteria or Specific Requirement – Special Tests and Provisions - Return of Title IV Funds (34 CFR section 668.22) (Reference number 2025-001) Recommendation – The University should take appropriate action to ensure information used to support student refund calculations is accurate and ensure proper oversight is performed timely. Views of Responsible Officials and Corrective Action Plan – Management concurs with the findings and recommendation. Responsible personnel will review calculations as they are completed. Individuals Responsible – Amy Stoltzfus, Director, Office of Financial Aid Anticipated Completion Date – Already implemented
Name of Contact Person: Shanice Sanders, Executive Director of School Finance, Corrective Action Plan: The Board of Education will implement controls and procedures to ensure that indirect costs charged to federal programs do not exceed the maximum amount allowable by the granting agencies. Proposed...
Name of Contact Person: Shanice Sanders, Executive Director of School Finance, Corrective Action Plan: The Board of Education will implement controls and procedures to ensure that indirect costs charged to federal programs do not exceed the maximum amount allowable by the granting agencies. Proposed Completion Date: Immediately
2025-006 - Child Nutrition Cluster – Eligibility - The District is aware of the missing eligibility documents for the Child Nutrition program and will implement new procedures and a plan to reduce the missing documentation. Responsible Officials – Joe Dawidziak, Superintendent Anticipated Completion...
2025-006 - Child Nutrition Cluster – Eligibility - The District is aware of the missing eligibility documents for the Child Nutrition program and will implement new procedures and a plan to reduce the missing documentation. Responsible Officials – Joe Dawidziak, Superintendent Anticipated Completion Date – The District will correct this in the subsequent fiscal year.
Finding Type: Compliance. Name of Contact Person: Mr. Joshua Stafford, Superintendent. Recommendation: We recommend the District ensure the report is free from errors and is submitted with the U.S. Department of Labor within the 45 days following the end of the reporting quarter. Corrective Action: ...
Finding Type: Compliance. Name of Contact Person: Mr. Joshua Stafford, Superintendent. Recommendation: We recommend the District ensure the report is free from errors and is submitted with the U.S. Department of Labor within the 45 days following the end of the reporting quarter. Corrective Action: The District is now aware of the errors that can occur during submission and will ensure the reports have all errors resolved and are filed timely. Proposed Completion Date: Immediately.
Managemet acknowledges they were not in compliance with the financial covenants ofthe bond. Management has been in contact USDA to keep them informed on thesituation and has put plans into place to improve the financial position of the District.
Managemet acknowledges they were not in compliance with the financial covenants ofthe bond. Management has been in contact USDA to keep them informed on thesituation and has put plans into place to improve the financial position of the District.
The property was repaid $61,198 and internal controls were properly updated.
The property was repaid $61,198 and internal controls were properly updated.
Management Response - The District Superintendent and Business Manager review and approve the financial statements. Upon completion of the full audit, the school board reviews, comments on, and approves the audited financial statements.
Management Response - The District Superintendent and Business Manager review and approve the financial statements. Upon completion of the full audit, the school board reviews, comments on, and approves the audited financial statements.
Management Response – Because of the size of the office and the district, we are precluded from maintaining a proper staff size to ensure a proper segregation of duties. We are aware of this condition, and we realize that the concentration of duties and responsibilities in a limited number of indivi...
Management Response – Because of the size of the office and the district, we are precluded from maintaining a proper staff size to ensure a proper segregation of duties. We are aware of this condition, and we realize that the concentration of duties and responsibilities in a limited number of individuals in not desirable for an effective system of internal control. To mitigate the issue of lack of segregation of duties, we have cross trained virtually each of the business office employees. While we do have a dedicated payroll person, another individual will perform cross checks & verifications independently. The same goes for issuing checks, accounts receivable, accounts payable, and activity funds. These functions are overseen by the business manager.
Management agrees with the finding and the funds were deposited to the reserve on July 16, 2024.
Management agrees with the finding and the funds were deposited to the reserve on July 16, 2024.
Management Response - The District Superintendent and Business Manager review and approve the financial statements. Upon completion of the full audit, the school board reviews, comments on, and approves the audited financial statements.
Management Response - The District Superintendent and Business Manager review and approve the financial statements. Upon completion of the full audit, the school board reviews, comments on, and approves the audited financial statements.
Management Response – Because of the size of the office and the district, we are precluded from maintaining a proper staff size to ensure a proper segregation of duties. We are aware of this condition, and we realize that the concentration of duties and responsibilities in a limited number of indivi...
Management Response – Because of the size of the office and the district, we are precluded from maintaining a proper staff size to ensure a proper segregation of duties. We are aware of this condition, and we realize that the concentration of duties and responsibilities in a limited number of individuals in not desirable for an effective system of internal control. To mitigate the issue of lack of segregation of duties, we have cross trained virtually each of the business office employees. While we do have a dedicated payroll person, another individual will perform cross checks & verifications independently. The same goes for issuing checks, accounts receivable, accounts payable, and activity funds. These functions are overseen by the business manager.
The management agent will repay the funds on behalf of the related party housing project until that property has funds available, pending HUD approval.
The management agent will repay the funds on behalf of the related party housing project until that property has funds available, pending HUD approval.
Management agrees and is working to submit a RAD for PRAC application that would include this property and two other properties.
Management agrees and is working to submit a RAD for PRAC application that would include this property and two other properties.
Management agrees and is working to submit a RAD for PRAC application that would include this property and two other properties.
Management agrees and is working to submit a RAD for PRAC application that would include this property and two other properties.
Finding # 2025-003 Type: Material weakness reporting Type: Noncompliance over reporting Assisting Listing Number: 43.001 Federal Agency: National Aeronautics and Space Administration Name of Federal Program: Science Finding: The FFR were not reviewed prior to submission by a secondary individual and...
Finding # 2025-003 Type: Material weakness reporting Type: Noncompliance over reporting Assisting Listing Number: 43.001 Federal Agency: National Aeronautics and Space Administration Name of Federal Program: Science Finding: The FFR were not reviewed prior to submission by a secondary individual and were not submitted timely. Federal Financial Reports (FFR) are due within 30 days following the end of each quarter. There should be controls in place to ensure reports are prepared, reviewed and submitted timely. Recommendation: Management should establish a consistent procedure to review and approve reports before submission by a member of management different from the preparer. Corrective Action: The review and late filing noted was the result of a temporary administrative disruption caused by a transition in the Chief Financial Officer role, which included a brief loss of account access necessary to prepare and submit the report. This access issue has been fully resolved and appropriate controls and staffing transition plans are in place. We have implemented a tracking system to ensure all required reports are compiled, reviewed, and submitted prior to the applicable deadline. Anticipated Completion Date December 20, 2025
Finding # 2025-002 Type: Material weakness over procurement Type: Noncompliance over procurement Assisting Listing Number: 43.001 Federal Agency: National Aeronautics and Space Administration Name of Federal Program: Science Finding: The Organization does not have controls or a policy in place to en...
Finding # 2025-002 Type: Material weakness over procurement Type: Noncompliance over procurement Assisting Listing Number: 43.001 Federal Agency: National Aeronautics and Space Administration Name of Federal Program: Science Finding: The Organization does not have controls or a policy in place to ensure compliance with this requirement. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Recommendation: Management should establish a consistent procedure to verify that vendors are not suspended or debarred and implement controls that are documented to support this process. A procurement policy should also be implemented consistent with the aforementioned guidance. Corrective Action: While we did not previously have a standalone, written policy specifically addressing suspension and debarment, key elements of procurement oversight, including suspension and debarment review, were incorporated into existing policies and operational practices. The new procurement policy consolidates and formally documents these requirements to ensure consistency, clarity, and ongoing compliance. In addition, we took the opportunity to review and revise our detailed procedures for setting up new vendors and retaining documentation for all required vendor confirmation. Anticipated Completion Date: December 20, 2025
Finding # 2025-001 Type: Material weakness over allowable costs Type: Immaterial noncompliance over allowable costs Assisting Listing Number: 43.001 Federal Agency: National Aeronautics and Space Administration Name of Federal Program: Science Finding: One individual computes the indirect charges an...
Finding # 2025-001 Type: Material weakness over allowable costs Type: Immaterial noncompliance over allowable costs Assisting Listing Number: 43.001 Federal Agency: National Aeronautics and Space Administration Name of Federal Program: Science Finding: One individual computes the indirect charges and prepares the drawdown requests without a secondary review by a senior member of management. Two out of forty expenses tested were completed by one individual with no review. Three out of four cash draws tested were submitted with no secondary review. Immaterial errors were noted in amounts charged for indirect costs. Recommendation: Management should establish a consistent procedure to ensure indirect rate calculations and monthly billings are reviewed prior to submission. Corrective Action: As a result of administrative disruption caused by a transition in the Chief Financial Officer role, we were required to catch up as quickly as possible. During this catch-up period, normal review processes were not fully in place due to the noted staff transitions. This was a one-time situation and has since been remedied through the implementation of formalized policies and procedures governing the preparation, review, and timely submission of federal reports. We have transitioned to an accounting software that limits the ability for indirect rate calculations to be completed by one individual. Monthly draw requests will be completed by the Finance Director during month-end close and submitted to the Chief Financial Officer for review prior to submission. Anticipated Completion Date: December 20, 2025
Management should develop a system that ensures that future Single Audit packages are submitted on time.
Management should develop a system that ensures that future Single Audit packages are submitted on time.
Condition: The required capital outlay log amounts had several capital outlay line items that did not match the cost recorded in the general ledger. Recommendation: It is recommended, at year end, that the District should compare the capital outlay log to the general ledger to ensure the costs match...
Condition: The required capital outlay log amounts had several capital outlay line items that did not match the cost recorded in the general ledger. Recommendation: It is recommended, at year end, that the District should compare the capital outlay log to the general ledger to ensure the costs match. Management Response: The Director of Finance or designee will review all capital outlay logs and reconcile them to the general ledger before year-end. In addition, training will be provided to grant coordinators to ensure they are completing the log correctly. Anticipated Date of Completion: June 30, 2026
Finding 2025-001: Comments on the Finding and Each Recommendation All the required monthly reserve for replacements deposits were not made during the year ended September 30, 2025. Management should transfer $5,692 into the reserve for replacements account from the operating cash account as soon as ...
Finding 2025-001: Comments on the Finding and Each Recommendation All the required monthly reserve for replacements deposits were not made during the year ended September 30, 2025. Management should transfer $5,692 into the reserve for replacements account from the operating cash account as soon as possible. Action(s) taken or planned on the finding Management concurs with the finding and agrees with the recommendation and on December 17, 2025 transferred $5,692 from the operating cash account to the reserve for replacements account.
In relation to Family Health Center of San Diego’s annual financial statement audit and the single audit for the year ended June 30, 2025, the Health Center hereby submits a corrective action plan, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,...
In relation to Family Health Center of San Diego’s annual financial statement audit and the single audit for the year ended June 30, 2025, the Health Center hereby submits a corrective action plan, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Section 511 Audit findings follow-up. 2025-001 – Special Tests and Provisions (Sliding Fee Discounts) Information on the Federal Program: Assistance Listing Number(s): 93.224, 93.527 Federal Program Name: Health Center Program Cluster Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Direct Program Federal Award Number and Award Year: 5 H80CS00224‐23‐00 – 2023-2024 5 H80CS00224‐24‐00 – 2024-2025 Criteria: In accordance with the Health Resources & Services Administration Health Center Program Compliance Manual, Chapter 9: Sliding Fee Discount Program, health centers must prepare and apply a sliding fee discount schedule so that amounts owed for health center services by eligible patients are adjusted based on the patients’ ability to pay. In accordance with 42 CFR 56.303, health centers must have a schedule of fees or payments for the provision of their health services consistent with locally prevailing rates or charges and designed to cover their reasonable costs of operation. They are also required to have a corresponding schedule of discounts applied and adjusted based on the patient’s ability to pay. The patient’s ability to pay is determined based on the official poverty guidelines, as revised annually by U.S. Department of Health and Human Services (HHS). The schedule of discounts must provide for a full discount to individuals and families with annual incomes at or below those set forth in the most recent poverty income guidelines (except that nominal fee for service may be collected from such individuals and families) and for no discount to individuals and families with annual incomes greater than twice those set forth in such guidelines. Condition and Context: The Health Center determines the sliding fee discount charged to the patients based on their annual gross income and household size. During our testing of sliding fee discount, we noted the following: • Four (4) out of 60 encounters selected were given a sliding fee discount in an amount that did not match the recalculated sliding fee discount based on annual gross income and household size per the sliding fee policy. There was a total of 65,495 encounters and the sample procedures were not statistical. Questioned Costs: None. 2025-001 – Special Tests and Provisions (Sliding Fee Discounts) (Continued) Cause: During a system transition period, monitoring controls were ineffective, resulting in documentation variances and system-related issues. Contributing factors included documentation timing differences, manual data entry variances, and previously identified electronic health record system mapping defects affecting fee calculation and form generation. Effect: Patients were given an improper sliding fee discount based on their income and family size. Indication of Repeat Finding: No. Recommendation: We recommend that the Health Center strengthen documentation practices and monitoring procedures related to the Sliding Fee Discount Program, particularly during periods of system or workflow transition. Views of Responsible Officials and Planned Corrective Actions: Management concurs in part with the finding. While isolated documentation variances were identified in a non-statistical sample, management determined the condition was limited in scope, not systemic, and resulted in no questioned costs. The variances were associated with a temporary system transition period and documentation timing issues, not a deficiency in internal controls. Corrective actions were implemented, system issues were resolved, and results were validated through a full-population review. Management will continue ongoing monitoring to ensure sustained compliance. Contact person responsible for corrective action: Ricardo Roman, Chief Financial Officer Anticipated completion date: June 30, 2026
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