Corrective Action Plans

Finding 1170318 (2024-018)

Material Weakness 2024

KY

Cash Management § 200.305

Federal Agency: Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing No.: 84.425 Recommendation: The University should revise its cash management procedures to ensure that HEERF drawdowns are based on actual, immediate cash needs rather than anticipated expen...

Federal Agency: Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing No.: 84.425 Recommendation: The University should revise its cash management procedures to ensure that HEERF drawdowns are based on actual, immediate cash needs rather than anticipated expenditures. Draw requests should be timed as closely as administratively feasible to the disbursement of funds for allowable program costs. Additionally, management should implement monitoring controls to prevent excess cash accumulation and ensure compliance with 2 CFR 200.305 and HEERF guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University finished issuing student disbursements on 7/8/24. This expended all remaining HEERF monies. This account has ended and has been closed out. Name(s) of the contact person(s) responsible for corrective action: Dorothy Daley, Director of Sponsored Projects Planned completion date for corrective action plan: Complete

View Audit 383421

Finding 1170316 (2024-017)

Material Weakness 2024

Kentucky State University

KY

Reporting Significant Deficiency Internal Control / Segregation of Duties

Federal Agency: Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing No.: 84.425 Recommendation: We recommend the University implement and maintain an effective system of internal controls over the administration of HEERF funds to ensure funds are reported ac...

Federal Agency: Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing No.: 84.425 Recommendation: We recommend the University implement and maintain an effective system of internal controls over the administration of HEERF funds to ensure funds are reported accurately and timely, in accordance with grant requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: KSU Grants Accounting will maintain proper documentation for HEERF reporting. Grants Accounting will monitor HEERF funds to ensure compliance with guidelines. KSU will assign responsibility for Direct Outreach to appropriate employees in Student Financial Aid and provide training on job duties. Grants Accounting will follow-up to verify corrections needed for previous reports, correct reports, and submit corrected reports. Name(s) of the contact person(s) responsible for corrective action: Dorothy Daley, Director of Grants; Varah Barnett, Financial Aid Director Planned completion date for corrective action plan: Complete

View Audit 383421

Finding 1170314 (2024-016)

Material Weakness 2024

Kentucky State University

KY

Student Financial Aid Eligibility Significant Deficiency

Federal Agency: US Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing No.: 84.038 Recommendation: We recommend reviewing procedures around Perkins Loan Program funds and implementing reconciliations and review to the third-party servicer reports. Explanatio...

Federal Agency: US Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing No.: 84.038 Recommendation: We recommend reviewing procedures around Perkins Loan Program funds and implementing reconciliations and review to the third-party servicer reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The university has implemented policies and procedures regarding reconciliations for Perkins loan services managed by a 3rd party supplier. Name(s) of the contact person(s) responsible for corrective action: Danyel Tolbert, Bursar Planned completion date for corrective action plan: Complete

View Audit 383421

Finding 1170313 (2024-015)

Material Weakness 2024

Kentucky State University

KY

Student Financial Aid Internal Control / Segregation of Duties Eligibility

Federal Agency: US Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing No.: 84.038 Recommendation: We recommend reviewing procedures and requirements regarding Perkins third-party service providers to ensure compliance with regulations. Explanation of disagr...

Federal Agency: US Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing No.: 84.038 Recommendation: We recommend reviewing procedures and requirements regarding Perkins third-party service providers to ensure compliance with regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The university has implemented policies and procedures regarding reconciliations for Perkins loan services managed by a 3rd party supplier. Name(s) of the contact person(s) responsible for corrective action: Danyel Tolbert, Bursar Planned completion date for corrective action plan: Complete

View Audit 383421

Finding 1170312 (2024-014)

Material Weakness 2024

Kentucky State University

KY

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Federal Agency: US Department of Education Federal Program Name: Federal Direct Student Loans Assistance Listing No.: 84.268 Recommendation: We recommend management maintain proper recordkeeping and retention of documentation and review of such documentation. Explanation of disagreement with audit f...

Federal Agency: US Department of Education Federal Program Name: Federal Direct Student Loans Assistance Listing No.: 84.268 Recommendation: We recommend management maintain proper recordkeeping and retention of documentation and review of such documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University implemented new procedures related to reconciling drawdown requests and approvals in FY25. The Director of Financial Aid meets monthly with Finance and Grants Accounting to review reconciliations. Finance now submits drawdown requests to the CFO for prior-approval and documentation is maintained in the Accounting department. Name(s) of the contact person(s) responsible for corrective action: Melissa Hicks, Controller Planned completion date for corrective action plan: Complete

View Audit 383421

Finding 1170311 (2024-013)

Material Weakness 2024

Kentucky State University

KY

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Federal Agency: US Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing No.: 84.063; 84.268 Recommendation: We recommend the University evaluate its procedures and review policies in overseeing submissions to the NSLDS completed by...

Federal Agency: US Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing No.: 84.063; 84.268 Recommendation: We recommend the University evaluate its procedures and review policies in overseeing submissions to the NSLDS completed by the third-party servicer. Additionally, we recommend the University review its policies and procedures on reporting enrollment information to the NSLDS to ensure that all relevant information is being captured and reporting timely in accordance with applicable regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University will resolve issues within 10 days of receiving notification. Name(s) of the contact person(s) responsible for corrective action: Yolanda Benson, Registrar Planned completion date for corrective action plan: July 1, 2026

View Audit 383421

Finding 1170309 (2024-012)

Material Weakness 2024

Kentucky State University

KY

Student Financial Aid

Federal Agency: US Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program, Federal Pell Grant Program; Federal Student Loans; Federal Work Study Program Assistance Listing No.: 84.007; 84.063; 84.268; 84.033 Recommendation: We recommend the calculati...

Federal Agency: US Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program, Federal Pell Grant Program; Federal Student Loans; Federal Work Study Program Assistance Listing No.: 84.007; 84.063; 84.268; 84.033 Recommendation: We recommend the calculation logic be reviewed and corrected to align with approved methodology. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In FY25, the University began utilizing Banner to perform calculations to ensure alignment with federal methodology. The Financial Aid office also began monitoring calculations on a monthly basis. Going forward, the University will verify registrar withdrawal dates are consistent and ensure that academic attendance records are captured correctly. The University will work with faculty to confirm the last date of attendance for unofficial withdrawals. Name(s) of the contact person(s) responsible for corrective action: Dr. Michael Dailey, Provost; Varah Barnett, Director of Financial Aid; and Yolanda Benson, Registrar. Planned completion date for corrective action plan: July 1, 2026

View Audit 383421

Finding 1170305 (2024-011)

Material Weakness 2024

Kentucky State University

KY

Procurement, Suspension & Debarment § 200.320

Federal Agency: US Department of Agriculture , US Department of Education Federal Program Name: Extension Services at 1890 Colleges Assistance Listing No.: 10.512 and 84.425 Recommendation: We recommend the University review its procurement policy to ensure it meets federal regulations and ensure th...

Federal Agency: US Department of Agriculture , US Department of Education Federal Program Name: Extension Services at 1890 Colleges Assistance Listing No.: 10.512 and 84.425 Recommendation: We recommend the University review its procurement policy to ensure it meets federal regulations and ensure they retain documentation of quotes received and final approval forms. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: KSU is revising its procurement policies to ensure compliance with uniform guidance requirements. Name(s) of the contact person(s) responsible for corrective action: Eileen Butts, Director of Purchasing Planned completion date for corrective action plan: March 31, 2026

View Audit 383421

Finding 1170299 (2024-010)

Material Weakness 2024

Kentucky State University

KY

Equipment & Real Property Management Subrecipient Monitoring § 200.313

Federal Agency: US Department of Agriculture Federal Program Name: Extension Services at 1890 Colleges Assistance Listing No.: 10.512 Recommendation: We recommend management implement procedures for physical inventory to be taken within a two-year timeframe as well as maintain evidence of assets pos...

Federal Agency: US Department of Agriculture Federal Program Name: Extension Services at 1890 Colleges Assistance Listing No.: 10.512 Recommendation: We recommend management implement procedures for physical inventory to be taken within a two-year timeframe as well as maintain evidence of assets possession such as photos of the property and equipment. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In October 2025, the University purchased software to facilitate managing inventory within the Facilities Department. Staff have been trained on the software in preparation for implementation. Beginning in January 2026, all purchases will be inventoried on a daily basis and input into the software. Inventory will be maintained and updated daily. Monthly reports will be submitted to the CFO. Name(s) of the contact person(s) responsible for corrective action: Dr. Heather Bigard, Chief Financial Officer and Director of Facilities. Planned completion date for corrective action plan: June 30, 2026

View Audit 383421

Finding 1170295 (2024-009)

Material Weakness 2024

Kentucky State University

KY

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Federal Agency: US Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing No.: 84.038 Recommendation: We recommend that the University keep MPNs for loans for three-year retention period. Explanation of disagreement with audit finding: There is no disagreement ...

Federal Agency: US Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing No.: 84.038 Recommendation: We recommend that the University keep MPNs for loans for three-year retention period. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University will review its files and take steps to ensure that files are complete with respect to MPNs. Name(s) of the contact person(s) responsible for corrective action: Danyel Tolbert, Bursar and Melissa Hicks, Controller Planned completion date for corrective action plan: March 31, 2026

View Audit 383421

Finding 1170294 (2024-008)

Material Weakness 2024

Kentucky State University

KY

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Federal Agency: US Department of Education Federal Program Name: Federal Direct Student Loans Assistance Listing No.: 84.268 Recommendation: We recommend the University review its policies and procedures around sending exit counseling information to students to ensure students receive proper counsel...

Federal Agency: US Department of Education Federal Program Name: Federal Direct Student Loans Assistance Listing No.: 84.268 Recommendation: We recommend the University review its policies and procedures around sending exit counseling information to students to ensure students receive proper counseling. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University now utilizes Banner System to provide a message alert within the Student Portal (Wired) when a withdrawal date is entered. This message serves as a reminder for the student to complete exit counseling. An email is also sent to students who graduate/withdraw every semester about completing Exit Counseling. These processes were implemented in FY25. Name(s) of the contact person(s) responsible for corrective action: Varah Barnett, Director of Financial Aid Planned completion date for corrective action plan: Complete

View Audit 383421

Finding 1170293 (2024-007)

Material Weakness 2024

Kentucky State University

KY

Student Financial Aid Significant Deficiency

Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program, Federal Pell Grant Program; Federal Direct Student Loans; Federal Work Study Program Assistance Listing No.: 84.007; 84.063; 84.268; 84.033 Recommendation: We recommend mana...

Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program, Federal Pell Grant Program; Federal Direct Student Loans; Federal Work Study Program Assistance Listing No.: 84.007; 84.063; 84.268; 84.033 Recommendation: We recommend management retain electronic files of student verification documentation more securely within school systems/networks. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Procedures were implemented in FY25 to maintain documentation in Banner to ensure that student statements are properly processed and retained. Name(s) of the contact person(s) responsible for corrective action: Varah Barnett, Director of Financial Aid Planned completion date for corrective action plan: Complete

View Audit 383421

Finding 1170289 (2024-006)

Material Weakness 2024

Kentucky State University

KY

Procurement, Suspension & Debarment § 200.213

Federal Agency: U.S. Department of Agriculture Federal Program Name: Extension Services at 1890 Colleges and the Education Stabilization Fund Assistance Listing No.: 10.512; 84.425 Recommendation: We recommend the University implement and enforce procedures to verify vendor status through SAM.gov or...

Federal Agency: U.S. Department of Agriculture Federal Program Name: Extension Services at 1890 Colleges and the Education Stabilization Fund Assistance Listing No.: 10.512; 84.425 Recommendation: We recommend the University implement and enforce procedures to verify vendor status through SAM.gov or other acceptable methods prior to award, retain documentation of the verification in procurement files, and train staff on suspension and debarment requirements under Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Procedures were implemented in FY26 to maintain documentation in Banner. The University has implemented additional procedures and buyers have been trained in checking SAM.gov for each federally funded Purchase Order. Name(s) of the contact person(s) responsible for corrective action: Eileen Butts, Director of Purchasing Planned completion date for corrective action plan: January 31, 2026

View Audit 383421

Finding 1170274 (2024-002)

Material Weakness 2024

Blueprint for Change

HI

Management will strive to complete annual audits within the prescribed due dates. Management will monitor accounting function needs so as to provide more timely updated financial information.

View Audit 383403

Finding 1170273 (2024-001)

Material Weakness 2024

Blueprint for Change

HI

Management will continue to work with improving its financial reporting.

View Audit 383403

Finding 1170267 (2024-003)

Material Weakness 2024

Township of Maplewood

NJ

The Township will improve its financial reporting and break out all grants, specifically the SLFRF payroll costs in the budget report to show them separately.

View Audit 383336

Finding 1170266 (2024-002)

Material Weakness 2024

Township of Maplewood

NJ

Reporting

The Township will improve its financial reporting to display all Project and Expenditure costs with the correct amounts and activity in each specific department per the grant award.

View Audit 383336

Finding 1170265 (2024-001)

Material Weakness 2024

Township of Maplewood

NJ

Reporting

The Township will establish procedures to ensure all federal grant reports are submitted on a timely basis before the due date.

View Audit 383336

Finding 1170261 (2024-007)

Material Weakness 2024

Town of Winchendon, Massachusetts

MA

Reporting Significant Deficiency Program Income § 200.328

Significant Deficiency in Internal Controls over Compliance Condition: As of the March 31, 2024 reporting date, the Town’s Project and Expenditure report had reported cumulative expenditures that were approximately $29,900 less than what was recorded in the grant fund on the general ledger Correctiv...

Significant Deficiency in Internal Controls over Compliance Condition: As of the March 31, 2024 reporting date, the Town’s Project and Expenditure report had reported cumulative expenditures that were approximately $29,900 less than what was recorded in the grant fund on the general ledger Corrective Action Planned: FY2026 Grant activity is being reconciled to the General Leger with the help of the outside consultant. This process will be completed by the end of January, 2026. In FY26 reconciliation will be performed quarterly, and will be up to date no later than end of March 2026. Anticipated Completion Date: March 2026 Contact: Anna Noyes, Town Accountant

View Audit 383316

Finding 1170260 (2024-006)

Material Weakness 2024

Town of Winchendon, Massachusetts

MA

Subrecipient Monitoring Period of Performance Reporting § 200.344

Condition: One Education Stabilization Fund final financial report has not been submitted that is overdue. Corrective Action Planned: Upon review, the District confirmed that the grants identified in this finding have either already had their final financial reports submitted or were operating under...

Condition: One Education Stabilization Fund final financial report has not been submitted that is overdue. Corrective Action Planned: Upon review, the District confirmed that the grants identified in this finding have either already had their final financial reports submitted or were operating under approved late liquidation extensions, during which final reporting is not yet required. The District has verified all reporting statuses and updated its internal grant tracking to ensure documentation of late-liquidation approvals is consistently stored with each grant file. No further action is needed beyond maintaining the existing reporting calendar and reconciliation procedures now in place. Anticipated Completion Date: Procedures are already implemented. Contact: Liz Latoria, School Director of Finance and Operations

View Audit 383316

Finding 1170256 (2024-005)

Material Weakness 2024

Town of Winchendon, Massachusetts

MA

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness

Material Weakness in Internal Controls over Compliance Condition: The Schools’ files did not include documentation of pre-approval for the purchase and installation of alarm systems and security cameras. Corrective Action Planned: The District is in the process of implementing a standardized checkli...

Material Weakness in Internal Controls over Compliance Condition: The Schools’ files did not include documentation of pre-approval for the purchase and installation of alarm systems and security cameras. Corrective Action Planned: The District is in the process of implementing a standardized checklist and updated purchasing controls to ensure all federally funded equipment and facility-related purchases are properly documented before procurement. Relevant staff have been informed of the requirement, and no purchase orders for such items will be released without the required approvals. Anticipated Completion Date: March 31, 2026 Contact: Liz Latoria, School Director of Finance and Operations

View Audit 383316

Finding 1170252 (2024-004)

Material Weakness 2024

Town of Winchendon, Massachusetts

MA

Subrecipient Monitoring Period of Performance Reporting § 200.344

Condition: Two final financial reports were not filed in a timely manner for Special Education Cluster grants. Corrective Action Planned: The District experienced delays in filing final financial reports due to difficulties reconciling grant revenues in the Town’s accounting system, as certain recei...

Condition: Two final financial reports were not filed in a timely manner for Special Education Cluster grants. Corrective Action Planned: The District experienced delays in filing final financial reports due to difficulties reconciling grant revenues in the Town’s accounting system, as certain receipts were not clearly identifiable during the grant closeout process. To address this, the District implemented a monthly reconciliation process with the Town and created an internal grant reporting calendar with secondary review to ensure timely submission. These procedures are now in place and will prevent future delays. Anticipated Completion Date: These procedures are currently in place. The District will complete the final financial reporting process for outstanding grants within 60-90 days, with all remaining reports finalized no later than March 31, 2026. Contact: Liz Latoria, School Director of Finance and Operations

View Audit 383316

Finding 1170234 (2024-002)

Material Weakness 2024

Southern Iowa Council of Governments

IA

Matching / Level of Effort / Earmarking

LOAN REQUIREMENTS: WE WILL IMPLEMENT THIS RECOMMENDATION IN THE FUTURE. JUDY BRIMM, FINANCE DIRECTOR, (641) 782-8491, IMMEDIATELY

View Audit 383291

Finding 1170222 (2024-002)

Material Weakness 2024

Africatown Community Land Trust

WA

Allowable Costs / Cost Principles § 200.430

Section III - Reportable Findings and Questioned Costs for Federal Awards Finding 2024-002 Noncompliance and material weakness in internal control over compliance with allowable costs/cost principles Management Response: 1. PARs were signed on a quarterly basis. We will transition to signing PARs bi...

Section III - Reportable Findings and Questioned Costs for Federal Awards Finding 2024-002 Noncompliance and material weakness in internal control over compliance with allowable costs/cost principles Management Response: 1. PARs were signed on a quarterly basis. We will transition to signing PARs biweekly to ensure timely acknowledgement. Person(s) Responsible: (COS) Rita Green, Department Managers

View Audit 383203

Finding 1170221 (2024-005)

Material Weakness 2024

Homeward Bound USA Inc. Adirondacks

NY

Internal Control / Segregation of Duties Cash Management Eligibility § 200.302

2024-005 – Insufficient Financial Management Finding: Our audit procedures disclosed that the Organization drew down more revenues than expenditures incurred. Recommendation: We recommend that Homeward Bound Adirondack, Inc. establish oversight practices to ensure that all revenues and expenses are ...

2024-005 – Insufficient Financial Management Finding: Our audit procedures disclosed that the Organization drew down more revenues than expenditures incurred. Recommendation: We recommend that Homeward Bound Adirondack, Inc. establish oversight practices to ensure that all revenues and expenses are recorded appropriately and reconciled to the proper drawdown requests Action Taken: We are creating a policy and procedure to include the bookkeeper submitting the weekly expenses to the Executive Director for review and sign off prior to executing the draw downs to ensure proper allocation of costs. The Executive Director has contacted the Fox grants team concerning this matter.

View Audit 383186

Corrective Action Plans

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