Corrective Action Plans

Finding 564088 (2024-001)

Significant Deficiency 2024

NJ

Procurement, Suspension & Debarment Subrecipient Monitoring

CORRECTIVE ACTION PLAN May 15, 2024 Agency: U.S. Department of Health and Human Services: Health Resources and Services Administration (HRSA) Paterson Community Center, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2023. ___________________________...

CORRECTIVE ACTION PLAN May 15, 2024 Agency: U.S. Department of Health and Human Services: Health Resources and Services Administration (HRSA) Paterson Community Center, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2023. ______________________________________ CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: 12/31/2024 The findings from the 12/31/2024, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule.Section III - Federal and State Awards Findings and Questioned Costs Significant Deficiency I Item 2024-001 - Procurement, Suspension and Debarment - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) FAIN # H8000163, H8F41100 for 2024 Recommendation: We recommend that the Center train its personnel in relation to the exclusion screening and proper documentation thereof and that the Center conduct regular reviews to ensure the completeness of exclusion search documentation. Action taken: We will ensure that the center's personnel are trained in the exclusion screening, maintain the location of the proper documentation, and conduct regular reviews to ensure the completeness of exclusion search documentation. The center performs background checks but was unable to locate the documents for those two new employees who were terminated but will ensure that we will put control processes in place to make sure we can demonstrate that the exclusion search was conducted. If the Health Resources and Services Administration has questions regarding this plan, please call Debora Walcott, Chief Financial Officer at 973-790-6594 ext. 320. Sincerely yours,

View Audit 358180

Finding 564010 (2024-001)

Material Weakness 2024

Universal Family Connection, Inc.

IL

Reporting

Finding 2024-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.667 Social Service Block Grant Program 21.027 Coronavirus State and Local Fiscal Recovery Funds Program Federal Agency U.S. Department of Health and Human Services Passthrough Agency Illinois D...

Finding 2024-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.667 Social Service Block Grant Program 21.027 Coronavirus State and Local Fiscal Recovery Funds Program Federal Agency U.S. Department of Health and Human Services Passthrough Agency Illinois Department of Human Services Award Number/Year 2024 Condition UFC did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2024. UFC also didn’t submit its audited financial statements, SEFA, CFR, CYEFR and other required information to the GATA portal within nine (9) months after June 30, 2024. Views of Responsible Officials and Planned Corrective Actions Management concurs with the auditor’s finding and will 1) hire personnel within the accounting and finance department so that all defined tasks can be performed in a more timely manner and 2) evaluate current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Persons Responsible: Marlin Bryant, CFO Date of Implementation: May 2025

View Audit 358172

Finding 564009 (2024-004)

Significant Deficiency 2024

Housing Authority of the City of Dodge City

KS

HUD Housing Programs Reporting

Significant Audit Adjustments Corrective action planned: The Director is looking into changing our fee accountant, as we do not have the capacity to do their job. Contact person: Darren Basgall, Executive Director. Anticipated completion date: 9-30-2025

View Audit 358169

Finding 564008 (2024-003)

Significant Deficiency 2024

Housing Authority of the City of Dodge City

KS

HUD Housing Programs

Tenant Accounts Receivable Corrective action planned: Hired new assistant to keep delinquent rents in check effective 5-20-2025. Contact person: Darren Basgall, Executive Director. Anticipated completion date: Rents will be collected to the best of our efforts and repayment agreements in place...

Tenant Accounts Receivable Corrective action planned: Hired new assistant to keep delinquent rents in check effective 5-20-2025. Contact person: Darren Basgall, Executive Director. Anticipated completion date: Rents will be collected to the best of our efforts and repayment agreements in place by 9-30-2025

View Audit 358169

Finding 564007 (2024-001)

Significant Deficiency 2024

Jefferson County Board of Education

AL

Special Tests & Provisions Allowable Costs / Cost Principles

The position of administrative assistant is responsible for and accurately maintaining student records, including but not limited to, attendance records, transcripts, and official written documentation of students' removals from the cohort, as required. All school sites are not currently assigned a...

The position of administrative assistant is responsible for and accurately maintaining student records, including but not limited to, attendance records, transcripts, and official written documentation of students' removals from the cohort, as required. All school sites are not currently assigned as 12 month administrative assistant. The current 10 month administrative assistant position will be reclassified to a 12 month administrative assistant position. All employees currently serving as a 10 month administrative assistant will be reclassified to a 12 month administrative assistant. This change will provide support throughout the school year and summer months to ensure accurate student records are maintained and official documentation is retained when a student is removed from a cohort. Professional development and support will be provided by the Technology and Student Services Departments regarding procedures for accurate maintenance of student records. Data verification will be performed to ensure compliance.

View Audit 358161

Finding 563978 (2024-004)

Significant Deficiency 2024

County of Kern

CA

Allowable Costs / Cost Principles § 200.303

Block Grants for Prevention and Treatment of Substance Abuse – Assistance Listing No. 93.959 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were i...

Block Grants for Prevention and Treatment of Substance Abuse – Assistance Listing No. 93.959 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were incurred). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: BHRS will make the necessary corrections to their cost allocation program and involve finance staff to manually redirect system data to ensure costs are not misclassified. The Auditor’s office will monitor progress of BHRS throughout the fiscal year. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor-Controller and Alonzo Solis, AC Senior Accountant. Planned completion date for corrective action plan: June 30, 2025, is not feasible due to the issuance date so expected completion date to June 30, 2026.

View Audit 358146

Finding 563976 (2024-003)

Significant Deficiency 2024

County of Kern

CA

Allowable Costs / Cost Principles Period of Performance Significant Deficiency § 200.303

Block Grants for Prevention and Treatment of Substance Abuse – Assistance Listing No. 93.959 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were i...

Block Grants for Prevention and Treatment of Substance Abuse – Assistance Listing No. 93.959 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were incurred). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Auditor’s Controllers office provides training on accrual basis of accounting at year-end training. All personnel related to recording the expenditures related to this program will be required to attend the meeting. In addition, the Auditor’s office will require all department heads and chief fiscal officers to sign off on the accuracy and completeness of their revenue and expenditures prior to closing each fiscal year going forward. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor-Controller and Alonzo Solis, AC Senior Accountant. Planned completion date for corrective action plan: June 30, 2025, is not feasible due to the issuance date so expected completion date to June 30, 2026.

View Audit 358146

Finding 563974 (2024-002)

Significant Deficiency 2024

County of Kern

CA

Allowable Costs / Cost Principles Period of Performance Significant Deficiency § 200.303

Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were incurred). ...

Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were incurred). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Auditor’s Controllers office provides training on accrual basis of accounting at year-end training. All personnel related to recording the expenditures related to this program will be required to attend the meeting. In addition, the Auditor’s office will require all department heads and chief fiscal officers to sign off on the accuracy and completeness of their revenue and expenditures prior to closing each fiscal year going forward. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor-Controller and Alonzo Solis, AC Senior Accountant. Planned completion date for corrective action plan: June 30, 2025, is not feasible due to the issuance date so expected completion date to June 30, 2026.

View Audit 358146

Finding 563969 (2024-001)

Significant Deficiency 2024

Fouke School District

AR

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

We concur with the recommendation and will contact DESE to ensure that the correct process is used to move the unallowable costs totaling $843 to the Operating Fund. To correct the payroll issue of charging unallowable costs, the payroll clerk will run reports quarterly to verify all payroll charge...

We concur with the recommendation and will contact DESE to ensure that the correct process is used to move the unallowable costs totaling $843 to the Operating Fund. To correct the payroll issue of charging unallowable costs, the payroll clerk will run reports quarterly to verify all payroll charges to any federal fund are appropriate.

View Audit 358144 Questioned Costs: $1

Finding 563968 (2024-001)

Material Weakness 2024

Commonbond Communities

MN

Internal Control / Segregation of Duties Material Weakness Reporting

Corrective action – Management has designed and implemented an improved month end procedure and related review process, it will continue documenting its training program and developing team members, and more fully utilizing the accounting modules in its Enterprise Resource Planning system to add mor...

Corrective action – Management has designed and implemented an improved month end procedure and related review process, it will continue documenting its training program and developing team members, and more fully utilizing the accounting modules in its Enterprise Resource Planning system to add more system-based controls. Name of contact person – Jennifer Anderson, Interim Chief Financial Officer Proposed completion date – Management has begun the corrective action and is expected to have additional processes in place and training done by December 31, 2025.

View Audit 358143

Finding 563967 (2024-001)

None 2024

603 Legal Aid

NH

Subrecipient Monitoring Internal Control / Segregation of Duties

Planned Corrective Action: The 603LA Accounting Manual has been updated and completed, taking into consideration the requirements of the 2023 LSC Financial Guide, including the completion of the Self-Assessment Questionnaire (Appendix 9) of the Guide. The Board of Directors reviewed, approved, and ...

Planned Corrective Action: The 603LA Accounting Manual has been updated and completed, taking into consideration the requirements of the 2023 LSC Financial Guide, including the completion of the Self-Assessment Questionnaire (Appendix 9) of the Guide. The Board of Directors reviewed, approved, and codified the Accounting Manual at the May 28, 2025 Board of Directors meeting. Responsible Person: Controller. Date of Completion: Compliant as of May 2025.

View Audit 358140

Finding 563963 (2024-001)

Material Weakness 2024

Dequeen School District

AR

Procurement, Suspension & Debarment Allowable Costs / Cost Principles School Nutrition Programs

The District has implemented controls to ensure that USDA donated foods is tracked and credited on future FSMC invoices. The District made journal entries from Operating to cover the $244,203 that had been originally approved verbally by CNU. We then found out this was not an approved expense from C...

The District has implemented controls to ensure that USDA donated foods is tracked and credited on future FSMC invoices. The District made journal entries from Operating to cover the $244,203 that had been originally approved verbally by CNU. We then found out this was not an approved expense from Child Nutrition and corrected the expense.

View Audit 358138

Finding 563959 (2024-001)

Significant Deficiency 2024

Greenville County Commission on Alcohol and Drug Abuse

SC

Cash Management

Procedures have been put in place to request reimbursements timely on a monthly basis.

View Audit 358124

Finding 563943 (2024-001)

Significant Deficiency 2024

The Colonial Williamsburg Foundation

VA

Allowable Costs / Cost Principles Reporting

2024-001 – Internal Control over Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Management’s Corrective Action Plan: The program director will review the payroll data quarterly to ensure that the costs are accurate and allowable and provide documented evidenc...

2024-001 – Internal Control over Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Management’s Corrective Action Plan: The program director will review the payroll data quarterly to ensure that the costs are accurate and allowable and provide documented evidence of timely review to the Grant Officer. Estimated Completion Date: June 30, 2025 Individual(s) Responsible for Corrective Action Plan: Ramona Vogel (Hill), Executive Director, Historic Area Interpretation & Operations, (757) 220-7762

View Audit 358119

Finding 563942 (2024-004)

Significant Deficiency 2024

Town of North Haven, Connecticut

CT

Procurement, Suspension & Debarment § 200.318 § 200.326

Description of Finding The Town’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Although the Town did not have a policy in place in conformity with the federal uniform guidance criteria, the Town did follow their procedures as it ...

Description of Finding The Town’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Although the Town did not have a policy in place in conformity with the federal uniform guidance criteria, the Town did follow their procedures as it relates to the contracts under the procurements applicable to the Town's major programs. Statement of Concurrence or Nonconcurrence Management agrees with the finding. Corrective Action The Town will develop a conforming procurement policy including all essential elements. Name of Contact Person Richard Monico, Director of Administration/Procurement Projected Completion Date June 30, 2025

View Audit 358117

Finding 563939 (2024-003)

None 2024

845 Housing Corporation

RI

Internal Control / Segregation of Duties

The Corporation is applying for their auditee unique entity identifier. When it is received, the Corporation will file the Data Collection Form for the year ended December 31, 2024 with the Federal Audit Clearinghouse.

View Audit 358112

Finding 563938 (2024-001)

None 2024

845 Housing Corporation

RI

Questioned Costs

The management agent pressed charges and prosecuted the employee and recovered $48,200 from the auditee’s insurance company in total (less $2,500 deductible). The management agent implemented additional internal control procedures over the processing and review of the auditee’s cash account and cash...

The management agent pressed charges and prosecuted the employee and recovered $48,200 from the auditee’s insurance company in total (less $2,500 deductible). The management agent implemented additional internal control procedures over the processing and review of the auditee’s cash account and cash reconciliations by their employees. Those charged with governance of the auditee also retained the services of a different auditing firm to conduct the 2024 audit of the Corporation. In addition, those charged with governance have requested the Executive Director to perform more stringent review of the operational and financial activity and reports provided by the management agent monthly.

View Audit 358112 Questioned Costs: $1

Finding 563936 (2024-001)

Material Weakness 2024

Trees Forever, Inc.

IA

Cash Management Internal Control / Segregation of Duties

Finding 2024-001 – Review of Expense Details for Compliance Condition: From the selections made for internal controls testing, the auditor noted no review/approval for compliance with the terms of the grant agreement was conducted prior to submission of the costs to the grantor. Recommendation: W...

Finding 2024-001 – Review of Expense Details for Compliance Condition: From the selections made for internal controls testing, the auditor noted no review/approval for compliance with the terms of the grant agreement was conducted prior to submission of the costs to the grantor. Recommendation: We recommend management implement processes and controls to perform a review of expenses being submitted for reimbursement to document approval of costs in compliance with the terms of the grant. View of responsible officials and planned corrective actions: Management agrees with the finding and will conduct an internal review of federal expenditures for compliance with the requirements applicable to each federal grant received prior to submission for reimbursement. Anticipated Completion Date: May 31, 2025

View Audit 358111

Finding 563934 (2024-001)

Material Weakness 2024

Learning Grove, Inc.

KY

Subrecipient Monitoring Reporting § 200.329

Corrective Action Plan: Finding 2024‐001 Responsible: Roseann Hayes, Emily Lewis, George Moore DD Recommendation: We recommend the Organization establish procedures for the preparation, review and timely submission of all reporting requirements. This can include implementing a system to track report...

Corrective Action Plan: Finding 2024‐001 Responsible: Roseann Hayes, Emily Lewis, George Moore DD Recommendation: We recommend the Organization establish procedures for the preparation, review and timely submission of all reporting requirements. This can include implementing a system to track reporting deadlines and timely submission as well as designating individuals with the responsibilities of preparation, review, and submission of reports. Additionally, we recommend the Organization designate someone to review the grant documents for all compliance requirements to ensure nothing is missed. Corrective Action Summary: • Advancement and Finance will create an updated Grants Management process • This Grants Management process will: o Be documented o Clearly define roles for Advancement and Finance staff o Create a flowchart to define what type of grant has been awarded (conditional vs. unconditional) o Assure awarded grants are reviewed for all performance, outcomes, invoicing and reporting requirements o Define who sets up calendar reminders for grant milestones (i.e. reporting) o Define how Program staff will be selected to receive these calendar reminders Anticipated Completion Date: 6/30/2025

View Audit 358106

Finding 563872 (2024-002)

Significant Deficiency 2024

Federation of American Scientists

DC

Material Weakness Reporting Internal Control / Segregation of Duties

Identifying Number: 2024-001 Finding: Current management noted that the audited financial statements as of and for the year ended June 30, 2023, were materially misstated for certain contribution transactions recorded in error in the amount of $7,997,654. Those errors were corrected and recorded in...

Identifying Number: 2024-001 Finding: Current management noted that the audited financial statements as of and for the year ended June 30, 2023, were materially misstated for certain contribution transactions recorded in error in the amount of $7,997,654. Those errors were corrected and recorded in fiscal year 2024, which is not in accordance with U.S. GAAP. Corrective Actions Taken or Planned: The entire finance team was new in FY24. During an internal review, management identified that certain revenue transactions had been recorded incorrectly in the prior fiscal year (FY23), resulting in a materially misstated ending balance for FY23 and, consequently, an inaccurate beginning balance for FY24. Because FY23 had already been closed and audited, the necessary corrections were recorded in FY24. Management proactively informed the new auditors of these adjustments. Due to the materiality of the correction, the auditors determined that the FY23 ending balance needed to be reinstated. As a result, they expanded their scope to include a re-audit of FY23 to ensure the accuracy of the reinstated balances, which extended the overall audit timeline. It’s important to emphasize that this finding was self-identified and communicated by management, and the correction was properly recorded in FY24. No further corrective action is required for FY25. Throughout FY24, the finance team has worked diligently to strengthen internal policies, processes, controls, and systems, which contributed to a clean audit result for FY24. This finding relates solely to FY23 and does not reflect the current state of financial management. Name of Responsible Person: Manizha Nabieva, CFO Projected Date of Completion: 05/28/2025 Identifying Number: 2024-002 Finding: Federation of American Scientists’ fiscal year 2024 data collection form was not submitted within nine months after the end of the audit period. Corrective Actions Taken or Planned: The delay in filing the data collection form was directly related to the delay in finalizing the audit, as noted in the first finding above. Since this was our first year working with RSM, the audit scope expanded significantly due to the reinstatement of beginning balances. The auditors required additional time to ensure the accuracy of the financial statements before issuing their final report. We will finalize and submit the data collection form as soon as the audit is complete, but no later than May 28, 2025. To prevent similar delays in the future, we have already initiated discussions with our auditors regarding the FY25 audit and plan to begin the audit process in October 2025. Name of Responsible Person: Manizha Nabieva, CFO Projected Date of Completion: 5/28/2025

View Audit 358091

Finding 563866 (2024-007)

Material Weakness 2024

Hitchcock Independent School District

TX

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

Finding Reference Number: 2024-007 Description of Finding: Lack of Semi-Annual Certifications for Special Education Personnel (Controls over Compliance - Special Education Cluster) Corrective Action Planned:The district has implemented new procedures for fiscal year 2025 to ensure that semiannual ce...

Finding Reference Number: 2024-007 Description of Finding: Lack of Semi-Annual Certifications for Special Education Personnel (Controls over Compliance - Special Education Cluster) Corrective Action Planned:The district has implemented new procedures for fiscal year 2025 to ensure that semiannual certifications are prepared, signed, and retained for all employees working solely on federal programs, including the Special Education Cluster (IDEA). A tracking system has been established, and staff training has been completed to reinforce documentation requirements. The district will continue to monitor compliance to ensure procedures are consistently applied. Responsible Contact Person: Patrick M. Faour, Interim Superintendent Anticipated Completion Date: August 30, 2025

View Audit 358090

Finding 563861 (2024-006)

Material Weakness 2024

Hitchcock Independent School District

TX

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding Reference Number: 2024-006 Description of Finding: Unauthorized Use of Child Nutrition Funds (Controls over Compliance - Child Nutrition Cluster) Corrective Action Planned: The district is conducting a full review of interfund activity involving Child Nutrition funds to ensure compliance wit...

Finding Reference Number: 2024-006 Description of Finding: Unauthorized Use of Child Nutrition Funds (Controls over Compliance - Child Nutrition Cluster) Corrective Action Planned: The district is conducting a full review of interfund activity involving Child Nutrition funds to ensure compliance with the grant requirements. Staff will be trained on programspecific requirements, including reviewing all expenditures for allowability. The District will evaluate the impact of budget amendments that may be necessary if significant reimbursements to the Child Nutrition fund must be made from the general fund. Responsible Contact Person: Patrick M. Faour, Interim Superintendent Anticipated Completion Date: August 31, 2025

View Audit 358090

Finding 563860 (2024-001)

None 2024

Independent Housing I, Inc. - Independence House 023-Eh-020

MA

HUD Housing Programs Eligibility

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding 2024-001: Major Program: Section 8 Housing Assistance Payments Program, Federal Assistance Listing Number 14.195 RECOMMENDATION The auditor recommends the Project organize the archived tenant informa...

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding 2024-001: Major Program: Section 8 Housing Assistance Payments Program, Federal Assistance Listing Number 14.195 RECOMMENDATION The auditor recommends the Project organize the archived tenant information and include original information in the active tenant files. ACTION TAKEN The Project will be organizing the archived tenant information and including the original information in the active tenant files. The Project will continue to train staff on the HUD Handbook requirements for tenant files.

View Audit 358077

Finding 563859 (2024-001)

Material Weakness 2024

North Slope Borough

AK

Reporting § 200.303 § 200.510

: Borough Finance staff have redesigned the methodology for the fiscal year end reconciliation between the amounts reported to grantors, the amounts recorded in the General Ledger and the amounts reported in the Schedule of Expenditures of Federal Awards (SEFA). Going forward the amounts recorded...

: Borough Finance staff have redesigned the methodology for the fiscal year end reconciliation between the amounts reported to grantors, the amounts recorded in the General Ledger and the amounts reported in the Schedule of Expenditures of Federal Awards (SEFA). Going forward the amounts recorded in the General Ledger will tie to the amounts reported in the SEFA and any reconciling items will be noted on the reconciliation between the General Ledger and the amounts reported to the grantors. Completion Date: June 30, 2025

View Audit 358074

Finding 563854 (2024-002)

Significant Deficiency 2024

School District 12 Education Foundation Dba Five Star Education Foundation

CO

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding 2024-002: Internal Control Over Financial Reporting– Significant Deficiency Audit Finding: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledge...

Finding 2024-002: Internal Control Over Financial Reporting– Significant Deficiency Audit Finding: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Audit Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review policies and procedures related to the year-end financial reporting process and controls should be implemented to ensure accrual basis financial reporting can be achieved. Management’s Response and Corrective Action Plan: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation. These transactions were proactively shared with the auditor at the commencement of the audit and discussed. Actions were already taken to fix these processes. In 2023 an outside professional was hired to mitigate these circumstances and ensure adherence to GAAP accounting. Management is hiring new accountants to alleviate future issues in this space. Management is in the process of implementing enhanced processes and procedures to achieve the proper recording of transactions on an accrual basis. A year-end checklist will be used to ensure that all accruals are booked in accounts receivable and payables. Contact and Completion Date: Shannon Hancock, 720-972-4342, shannon.hancock@5starfoundation.org, is the primary contact, and the Executive Director at School District 12 Education Foundation (dba Five Star Education Foundation). The corrective action is expected to be resolved before the end of the next fiscal year-end of December 31, 2025.

View Audit 358066

Corrective Action Plans

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