Corrective Action Plans

Finding 1160259 (2024-003)

Material Weakness 2024

Franklin Home for the Aged D/b/a Peabody Place

NH

Student Financial Aid Subrecipient Monitoring Eligibility § 200.512

Condition Found: Per 2 CFR § 200.512(a), the auditee must submit the data collection form (DCF) and reporting package to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the auditee’s fiscal year. The aud...

Condition Found: Per 2 CFR § 200.512(a), the auditee must submit the data collection form (DCF) and reporting package to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the auditee’s fiscal year. The audit for the year ended December 31, 2023, was not submitted to the Federal Audit Clearinghouse until DATE, which is after the required submission deadline of September 30, 2024. Individual(s) Responsible for Corrective Action: Lynda P. Goldthwaite, Executive Director and Stacey Matott, Director of Finance Planned Corrective Action: With the debt work out in place, management should continue to follow procedures in place to ensure the timely completion of future audits and submission of the reporting package to the Federal Audit Clearinghouse. Anticipated Completion Date: September 30, 2025

View Audit 370637

Finding 1160258 (2024-002)

Material Weakness 2024

Franklin Home for the Aged D/b/a Peabody Place

NH

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

Condition Found: The Organization did not make the required annual deposits into the debt payment reserve, capital asset replacement reserve, resident asset depletion reserve, and the facility fill reserve. We confirmed the balances of the four reserve accounts and identified that all four reserve a...

Condition Found: The Organization did not make the required annual deposits into the debt payment reserve, capital asset replacement reserve, resident asset depletion reserve, and the facility fill reserve. We confirmed the balances of the four reserve accounts and identified that all four reserve accounts were not funded in accordance with the USDA loan agreement. Individual(s) Responsible for Corrective Action: Lynda P. Goldthwaite, Executive Director and Stacey Matott, Director of Finance Planned Corrective Action: Peabody Place sought a debt work out in 2025 that would allow for deferral of required deposits for six months until January 1, 2026. Anticipated Completion Date: Completed

View Audit 370637 Questioned Costs: $1

Finding 1160257 (2024-003)

Material Weakness 2024

Wyoming Valley Sanitary Authority

PA

Subrecipient Monitoring Cash Management

2024-003 - (Noncompliance) Uniform Guidance Written Policies/Procedures Federal Program: Assistance Listing #21.027, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of Treasury, Passed Through County of Luzerne, Pennsylvania, Pass-Through Entity Identifying Number: not ...

2024-003 - (Noncompliance) Uniform Guidance Written Policies/Procedures Federal Program: Assistance Listing #21.027, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of Treasury, Passed Through County of Luzerne, Pennsylvania, Pass-Through Entity Identifying Number: not available Assistance Listing #66.202, Congressionally Mandated Projects, United States Environmental Protection Agency, Pass-Through Entity Identifying Number: 95339501-0 Criteria: The Uniform Guidance requires written policies and/or procedures in the areas of allowability of costs and cash management. Condition/Context: While the Authority has informal policies and procedures surrounding the administration of its federal programs, these policies and procedures have not been formally documented to ensure compliance with the areas of allowability of costs and cash management as required under the Uniform Guidance. Corrective Action Plan Although the Authority currently follows the requirements of the Uniform Guidance and has informal policies and procedures as it relates to the administration of federal grant activities, the Authority will establish a formal written policy titled Uniform Guidance for Federal Grants by December 31, 2025. WVSA’s Internal Auditor, Comptroller, Purchasing Department and general business staff are overseeing and implementing the corrective actions with oversight of the CFO and CTO.

View Audit 370636

Finding 1160254 (2024-004)

Material Weakness 2024

Esperanza Foster Family Agency

CA

Questioned Costs Allowable Costs / Cost Principles § 200.403

Strengthen compliance efforts and mitigate risk, staff will consult a qualified third-party professional before executing any transaction that may be unallowable, ensuring adherence to funding. If unallowable expenses are identified, staff will quickly coordinate with the appropriate state agency to...

Strengthen compliance efforts and mitigate risk, staff will consult a qualified third-party professional before executing any transaction that may be unallowable, ensuring adherence to funding. If unallowable expenses are identified, staff will quickly coordinate with the appropriate state agency to resolve issue.

View Audit 370633 Questioned Costs: $1

Finding 1160253 (2024-001)

Material Weakness 2024

Methodist Services

PA

Material Weakness § 200.512

Finding 2024-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2023, management was unable to provide timely year end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect ...

Finding 2024-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2023, management was unable to provide timely year end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. The additional effort needed to reconcile fiscal year 2023 balances resulted in delays in reconciling fiscal year 2024 balances. This finding is was also present in prior year. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization’s current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Management’s Corrective Action Plan There was significant turnovers in the finance department, including the CFO and the finance director. These turnovers affected the ability of the Organization to produce the information on time for the auditors for the fiscal year 2023 audit. The Organization is working with external consultants to improve the timeliness of reconciliations and audit preparation and recruiting vacant positions. We completed accounting policy changes which will correct the issues noted. Management is confident that the issues that have been noted have been rectified. Contact Person: Cynthia Benton, Chief Financial Officer Anticipated Completion Date: December 31, 2025

View Audit 370632

Finding 1160241 (2024-001)

Material Weakness 2024

City of Zillah

WA

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

Corrective action the auditee plans to take in response to the finding: The City will take the following corrective actions: 1. Enforce Policy 2021-05 – Staff will be required to follow existing procurement policy provisions for federally funded contracts. 2. Verification Procedures – For all federa...

Corrective action the auditee plans to take in response to the finding: The City will take the following corrective actions: 1. Enforce Policy 2021-05 – Staff will be required to follow existing procurement policy provisions for federally funded contracts. 2. Verification Procedures – For all federally funded contracts of $25,000 or more, the City will verify and document contractor status through: o Written contractor certifications, and/or o Inclusion of suspension/debarment clauses in contracts, and/or o Review of contractor status in SAM.gov before award. 3. Recordkeeping – The Clerk/Treasurer’s office will maintain centralized records of all verification documentation. 4. Staff Training – Finance and Public Works staff will receive refresher training on Policy 2021-05 and federal procurement requirements. 5. Oversight – The City Administrator will conduct quarterly reviews of procurement files to confirm compliance. Anticipated date to complete the corrective action: • Centralized documentation – Implemented immediately for all new federally funded contracts. • Staff training – To be completed by December 31, 2025 • Quarterly oversight reviews – Beginning Q1 2026.

View Audit 370630

Finding 1160229 (2024-001)

Material Weakness 2024

Aspira INC of Illinois

IL

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.512

ASPIRA will put in place a process for monitoring the certification of the audit reporting package and ensure to submit the audit reporting package before the deadline.

View Audit 370624

Finding 1160222 (2024-001)

Material Weakness 2024

Word of Hope Ministries, Inc.

WI

Internal Control / Segregation of Duties Reporting

The Company does not have the resources and/or staff to prepare the financial statements and notes but will continue to oversee the auditor’s services and review and approve the financial statements and notes.

View Audit 370619

Finding 1160221 (2024-004)

Material Weakness 2024

Transylvania County

NC

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.512

Finding 2024-004: Name of Contact Person: Meagan O’Neal Management Response: The new Finance Director, hired in October 2023, immediately began reviewing staff assignments to analyze for improvements in efficiency while keeping separation of duties secure, while also completing the FY23 audit. This ...

Finding 2024-004: Name of Contact Person: Meagan O’Neal Management Response: The new Finance Director, hired in October 2023, immediately began reviewing staff assignments to analyze for improvements in efficiency while keeping separation of duties secure, while also completing the FY23 audit. This review allowed restructuring tasks to improve efficiency and the ability to set up new processes. The finance director has utilized help from NC Association of County Commissioner staff as well as UNC School of Government courses to continue to update processes and improve upon the quality of data provided. The occurrence of Hurricane Helene and the Spring wildfires in Transylvania County impacted staff capacity to complete the FY24 audit however now that it is complete we will be diligently working to have FY25 information submitted quickly. Notes have been added to the process documents to ensure all steps are taken when submitting the data collection form to the Federal Audit Clearinghouse once future audits are completed by the firm. Proposed Completion Date: Immediately.

View Audit 370605

Finding 1160216 (2024-001)

Material Weakness 2024

Terrell County Board of Education

GA

Questioned Costs Procurement, Suspension & Debarment School Nutrition Programs § 200.303 § 200.318 § 200.320

FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Procurement and Suspension and Debarment Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of E...

FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Procurement and Suspension and Debarment Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: 10.553 - School Breakfast Program 10.555 - National School Lunch Program Federal Award Number: 225GA324N1099 (Year: 2024), 245GA324N1199 (Year: 2024) Questioned Costs: $46,878 Description: A review of expenditures charged to the Child Nutrition Cluster revealed that the School District's internal control procedures were not operating appropriately to ensure that the School District's procurement procedures were followed. Corrective Action Plans: Responsible Parties: Superintendent, School Nutrition Manager, To address this finding and prevent recurrence, the Superintendent and School Nutrition Manager will implement the following corrective measures in accordance with Terrell County Board of Education policy and applicable federal/state guidelines: 1. Staff Training-Provide training for School Nutrition staff on federal procurement requirements, the district's Procurement Plan, and Board policy related to financial management, procurement, and record retention. Training will be documented and updated annually or as requirements or Board policies are revised. 2. Process Monitoring-Establish written procedures aligned with board-approved procurement policies to ensure all required bids and quotes are obtained, documented, and retained. Maintain both electronic and hard-copy procurement files, with oversight responsibilities clearly assigned. 3. Internal Compliance Reviews-Conduct quarterly internal reviews between the Schol Nutrition Department and Finance to verify procurement documentation and adherence to Board policy and the Procurement Plan. Provide review summaries to the Superintendent and report systemic issues to the Board, if necessary. 4. Accountability Measures-Incorporate procurement documentation and retain responsibilities into departmental expectations, evaluations, and supervisory reviews, consistent with Board policies on accountability and internal controls. Noncompliance with documentation procedures will be addressed under established Board personnel and accountability policies. Estimated Completion Date: June 30, 2026 Contact Person: Shereca R. Harvey, Superintendent Telephone: (229) 995-4425 Email: srharvey@terrell.k12.ga.us

View Audit 370604 Questioned Costs: $1

Finding 1160214 (2024-001)

Material Weakness 2024

Bighorn Valley Health Center, Inc.

WA

Special Tests & Provisions Allowable Costs / Cost Principles Material Weakness

Corrective action planned: In reviewing audit finding 2024-001, it was determined that the primary cause for the misapplication of the sliding fee was the need for increased training and oversight. One Health has since taken steps to enhance sliding fee policy and procedure training for all staff, w...

Corrective action planned: In reviewing audit finding 2024-001, it was determined that the primary cause for the misapplication of the sliding fee was the need for increased training and oversight. One Health has since taken steps to enhance sliding fee policy and procedure training for all staff, with a focus on Intake and Patient Financial Services staff. One Health also intends to review individual performance of staff by implementing peer and supervisory audits of sliding fee scale applications and data entry. Identification of consistent errors has led to enacting accountability measures to allow for additional coaching and follow-up. Additionally, One Health has reviewed EMR processes and functionality to ensure ease and clarity of data entry to eliminate opportunities for human error. Anticipated completion date: December 31, 2025 Contact person responsible for corrective action: Emily Faricy Associate Vice President - Finance

View Audit 370598

Finding 1160212 (2024-004)

Material Weakness 2024

Columbus Community School District

IA

Internal Control / Segregation of Duties Reporting

The district continues to find solutions to help segregate duties with our minimally staffed central office (business manager, HR director & nutrition director). This yar we modified duties of our building secretaries due to being short staffed. This eliminated an additional check & balance measure ...

The district continues to find solutions to help segregate duties with our minimally staffed central office (business manager, HR director & nutrition director). This yar we modified duties of our building secretaries due to being short staffed. This eliminated an additional check & balance measure added a few years ago of the secretary entering receipts into WebLink. The building secretaries continue to write deposit slips & post payment to our student information system. The district’s business manager & HR director will work with board members on the finance & negotiations committee to develop a plan to add more checks & balances to our current operation. We will use the segregation of duties handbook to help with this process.

View Audit 370596

Finding 1160210 (2024-001)

Material Weakness 2024

City of Wisconsin Rapids

WI

Procurement, Suspension & Debarment

Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027 Recommendation: Auditors recommend the City revise its policies and procedures to ensure that documentation as to the date of the review of suspension and debarment status is maintained with the procurement history of ...

Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027 Recommendation: Auditors recommend the City revise its policies and procedures to ensure that documentation as to the date of the review of suspension and debarment status is maintained with the procurement history of each transaction that requires such a search. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The City's Grant Management Policy will be revised to mandate documentation of the date that the search for the required suspension and debarment was conducted. Name(s) of the contact person(s) responsible for corrective action: Timothy J Desorcy Planned completion date for corrective action plan: October 31, 2025

View Audit 370594

Finding 1160206 (2024-004)

Material Weakness 2024

Empower 'u', Inc.

FL

Questioned Costs

Client Response - During FY 2024 and part of FY 2025, the organization experienced front desk personnel turnover and operational disruptions due to facility remodeling, which required multiple relocations of staff and records. These factors contributed to gaps in the availability of supporting docum...

Client Response - During FY 2024 and part of FY 2025, the organization experienced front desk personnel turnover and operational disruptions due to facility remodeling, which required multiple relocations of staff and records. These factors contributed to gaps in the availability of supporting documentation needed to validate certain patient billing amounts. Management acknowledges the importance of retaining complete and accurate documentation to support billing, particularly for services subject to the sliding fee scale. While only a portion of the tested items were impacted, we recognize that missing documentation created the appearance of errors that could not be recalculated during audit testing. To address this, the organization is implementing corrective measures, including: • Strengthening record retention procedures to ensure all supporting documentation for billing and sliding fee scale adjustments is readily available for review. • Enhancing training for staff on billing documentation requirements tied to federal program compliance. • Establishing periodic internal reviews to confirm that billing aligns with program rules and is fully supported.

View Audit 370586 Questioned Costs: $1

Finding 1160203 (2024-002)

Material Weakness 2024

City of Manhattan, Kansas

KS

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency § 200.318

Management’s Response/Corrective Action Plan (Unaudited): Management acknowledges the finding. For the transaction tested, the original contract was approved in 2021, and we initially intended to use the general fund as a source of payment. The City has reviewed and updated its procedures to require...

Management’s Response/Corrective Action Plan (Unaudited): Management acknowledges the finding. For the transaction tested, the original contract was approved in 2021, and we initially intended to use the general fund as a source of payment. The City has reviewed and updated its procedures to require that documentation behind the analysis of the type of procurement steps be saved in the contract file. Staff will be retrained on these requirements to ensure documentation is consistently maintained for all covered transactions in accordance with federal guidelines. Planned Completion Date: These modifications are being implemented immediately. Contact Person Responsible for Correction Action: Finance Director

View Audit 370568

Finding 1160202 (2024-001)

Material Weakness 2024

City of Manhattan, Kansas

KS

Procurement, Suspension & Debarment

Management’s Response/Corrective Action Plan (Unaudited): Management acknowledges the finding. For the transaction tested, the suspension and debarment check was in fact performed prior to the start of the procurement contract, and no issues were identified; however, the supporting documentation was...

Management’s Response/Corrective Action Plan (Unaudited): Management acknowledges the finding. For the transaction tested, the suspension and debarment check was in fact performed prior to the start of the procurement contract, and no issues were identified; however, the supporting documentation was not retained. The City plans to update its procedures to require that evidence of suspension and debarment checks is maintained. The City plans to update the purchasing policy to reference the federal suspension and debarment compliance requirements for all contracts over $25,000 by requiring a certification from the entity and adding that clause or condition to the contracts. All certifications should be saved in the City Clerk’s official contract file at the time of verification. Staff will be retrained on these requirements to ensure documentation is consistently maintained for all covered transactions in accordance with federal guidelines. Planned Completion Date: These modifications are being implemented immediately. Contact Person Responsible for Correction Action: Finance Director

View Audit 370568

Finding 1160201 (2024-001)

Material Weakness 2024

Town of Salem

NH

Reporting Significant Deficiency Internal Control / Segregation of Duties

DATE: September 29, 2025 TO: CBIZ FROM: CC: Nicole McGee Finance Director Joseph Devine Town Manager RE: Corrective Action for FY 2024 Finding 1 Corrective Action Plan for Finding 2024-001 “Improve Controls Over Reporting” Policies and procedures were enacted at the end of calendar year 2024 to ensu...

DATE: September 29, 2025 TO: CBIZ FROM: CC: Nicole McGee Finance Director Joseph Devine Town Manager RE: Corrective Action for FY 2024 Finding 1 Corrective Action Plan for Finding 2024-001 “Improve Controls Over Reporting” Policies and procedures were enacted at the end of calendar year 2024 to ensure there is a second person involved in the reporting process. Since then, all grant submissions must be reviewed by a second person. Expected Completion Date: December 31, 2024. Contact Person: Nicole McGee, Finance Director

View Audit 370566

Finding 1160194 (2024-001)

Material Weakness 2024

N L Resort, INC

VI

Special Tests & Provisions HUD Housing Programs

The funds were subsequently returned to the account.

View Audit 370562

Finding 1160193 (2024-019)

Material Weakness 2024

Town of Jonesboro

LA

Internal Control / Segregation of Duties Material Weakness Reporting

The Town of Jonesboro acknowledges this audit finding and concurs that, for the reporting period ending June 30, 2024, performance and financial reports required under the State and Local Fiscal Recovery Funds (SLFRF) program were not submitted to the appropriate oversight authorities nor made avail...

The Town of Jonesboro acknowledges this audit finding and concurs that, for the reporting period ending June 30, 2024, performance and financial reports required under the State and Local Fiscal Recovery Funds (SLFRF) program were not submitted to the appropriate oversight authorities nor made available to the audit team. This lapse was due in part to a lack of understanding of the federal reporting requirements and the absence of internal procedures to track and manage SLFRF reporting obligations. The Town acknowledges that this noncompliance impeded the auditor’s ability to verify program expenditures and compliance with the applicable provisions of 2 CFR Part 200 and guidance issued by the U.S. Department of the Treasury and the Office of Management and Budget (OMB). To correct and prevent future occurrences of this issue, the Town will implement the following corrective action plan: 1. Immediate Remedial Action: The Town will submit any required SLFRF reports for the 2024 program year as soon as possible, even if past the original deadline. We will also reach out to the U.S. Department of the Treasury or its designated agency to formally communicate the reason for the delay and request guidance on next steps, including potential extensions or waivers. 2. Establishment of Formal Reporting Procedures: The Town is developing internal procedures and deadlines to ensure timely submission of all future federal grant reports. These procedures will include: o A reporting calendar with submission deadlines aligned to OMB and Treasury guidance; o Assigned personnel responsibilities for data collection, performance metrics, and narrative preparation; and o Review protocols by finance and grants administration officials prior to submission. 3. Staff Training and Capacity Building: The Town will seek appropriate training from federal or state agencies or through official SLFRF guidance webinars and 116 documentation to ensure staff are fully informed of compliance and reporting responsibilities under the program.

View Audit 370560

Finding 1160192 (2024-018)

Material Weakness 2024

Town of Jonesboro

LA

Questioned Costs Procurement, Suspension & Debarment § 200.320

The Town of Jonesboro acknowledges the audit finding and appreciates the opportunity to provide clarification regarding the cited payment of $85,476 to a contractor for water and sewer system repairs. This particular contractor had a long-standing relationship with the previous administration and co...

The Town of Jonesboro acknowledges the audit finding and appreciates the opportunity to provide clarification regarding the cited payment of $85,476 to a contractor for water and sewer system repairs. This particular contractor had a long-standing relationship with the previous administration and continued to submit invoices for services claimed to have been performed under prior authorizations. Upon assuming office, the current administration encountered a backlog of such invoices and, in many cases, limited to no documentation supporting the scope, schedule, or verification of the work that was allegedly completed. Due to the lack of transparency, inconsistent billing, and insufficient oversight, the current administration determined that it was not in the best financial or operational interest of the Town to continue any further engagement with this contractor. It became clear that the pattern of invoicing presented a risk of noncompliance and potentially unsupported expenditures. As a corrective measure, the Town took the following actions: 1. Final Settlement and Termination of Relationship: The Town made a one-time payment to settle the outstanding invoice history. This was done to clear any disputed or lingering financial obligations associated with the contractor’s services under the previous administration. 2. Legal Closure with Notarized Certification: The Town required and obtained a notarized letter from the contractor affirming that no additional payments are owed and that all contractual or informal claims have been resolved in full. This was done to ensure finality and mitigate any future risk or liability. 115 3. Policy Reaffirmation: The Town affirms its commitment to federal procurement regulations, specifically those set forth under 2 CFR § 200.320. Current procedures now mandate that all purchases exceeding the micro-purchase threshold undergo proper procurement documentation, including solicitation of price or rate quotations from multiple qualified vendors. Moving forward, the Town has ensured all vendors and contractors are engaged under transparent, documented, and compliant procurement procedures. This administration remains dedicated to restoring public trust and operating under full compliance with federal, state, and local purchasing regulations.

View Audit 370560 Questioned Costs: $1

Finding 1160191 (2024-017)

Material Weakness 2024

Town of Jonesboro

LA

Questioned Costs Allowable Costs / Cost Principles

The Town of Jonesboro acknowledges this audit finding and concurs with the conclusion that a duplicate payment occurred in connection with the use of $53,786 in funds from the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. The duplicate payment resulted from the same expenditure ...

The Town of Jonesboro acknowledges this audit finding and concurs with the conclusion that a duplicate payment occurred in connection with the use of $53,786 in funds from the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. The duplicate payment resulted from the same expenditure being reimbursed by a second federal program that was not designated as a major program. While this incident was unintentional and due to a lack of centralized grant tracking at the time, the Town has taken corrective action to prevent such issues from occurring in the future. Specifically: 1. Implementation of a Grant Award Management System: The Town is currently deploying a formal grant tracking and reconciliation system that will provide centralized oversight of all grant awards, expenditures, and reimbursements. This system is designed to prevent overlapping or duplicative claims across funding sources and will be supported by enhanced documentation and review protocols. 2. Internal Controls and Policy Enhancements: In response to this finding, the Town has updated its grant management policies and internal accounting procedures to include specific verification steps prior to submitting reimbursement requests. These policies now require: o Cross-checking all grant reimbursements against prior or pending claims, o Documenting funding source allocation for each expenditure, o Requiring dual review by finance and grants administration staff. 3. Staff Training and Grant Oversight: Personnel involved in grant administration and finance have received and will continue to receive training on federal allowable cost principles under 2 CFR Part 200, Subpart E. The Town is committed to maintaining compliance with all federal funding requirements and is actively working to reinforce accountability and transparency in its use of public funds. The Town will coordinate with the appropriate federal and state authorities to resolve any remaining discrepancies and, if necessary, return funds that have been deemed ineligible or duplicated.

View Audit 370560 Questioned Costs: $1

Finding 1160190 (2024-016)

Material Weakness 2024

Town of Jonesboro

LA

Procurement, Suspension & Debarment Material Weakness Special Tests & Provisions

The Town of Jonesboro respectfully disagrees with the characterization of this finding. While the Build America, Buy America Act (BABA) has been in effect since November 2021, the Town has not received any prior audit findings or notices of noncompliance related to BABA in previous grant cycles or d...

The Town of Jonesboro respectfully disagrees with the characterization of this finding. While the Build America, Buy America Act (BABA) has been in effect since November 2021, the Town has not received any prior audit findings or notices of noncompliance related to BABA in previous grant cycles or during past administrations. To date, there has been no formal 113 notification or technical assistance provided by federal or state agencies to guide the Town in implementing these requirements in its procurement policies. Nevertheless, the Town fully understands the intent and importance of the BABA provisions, which aim to promote domestic manufacturing and ensure compliance in the use of materials for federally funded infrastructure projects. In light of this finding, the Town will take the following corrective actions: 1. Policy and Procedure Updates: The Town will revise its existing procurement policies to explicitly include compliance requirements for the Build America, Buy America Act, including the use of U.S.-produced iron, steel, manufactured products, and construction materials in all federally funded infrastructure projects. 2. Training and Awareness: Staff involved in procurement, grant administration, and capital infrastructure will undergo appropriate training to ensure a clear understanding of BABA regulations and documentation requirements. The Town will also coordinate with the Louisiana Department of Environmental Quality and the Environmental Protection Agency to obtain relevant training materials and compliance tools. 3. Future Audit Integration: Although the Town has not previously received findings related to BABA, this issue will now be incorporated into internal compliance checklists and future audit procedures to ensure consistent adherence going forward. The Town of Jonesboro is committed to full compliance with federal funding regulations and will implement all necessary improvements to ensure that future federally funded projects align with BABA requirements.

View Audit 370560

Finding 1160189 (2024-015)

Material Weakness 2024

Town of Jonesboro

LA

Questioned Costs Subrecipient Monitoring Cash Management

The Town of Jonesboro respectfully disagrees with this finding as presented. While the audit notes delays between the receipt of federal funds and their disbursement, the Town asserts that it is not responsible for managing or operating the federal financial system that governs the authorization, di...

The Town of Jonesboro respectfully disagrees with this finding as presented. While the audit notes delays between the receipt of federal funds and their disbursement, the Town asserts that it is not responsible for managing or operating the federal financial system that governs the authorization, disbursement, or scheduling of funds related to the referenced grant. The Louisiana Department of Environmental Quality (LDEQ) and other relevant governmental entities manage the disbursement platform used for this grant, and Town personnel do not have direct administrative control over its structure or scheduling capabilities. Furthermore, Town staff have not received adequate training or guidance from state or federal administrators regarding the procedural requirements or compliance timelines for the Clear Water State Revolving Fund (CWSRF) program. Despite these limitations, the Town remains fully committed to compliance with federal cash management standards and the Uniform Guidance (2 CFR § 200.305), which requires recipients to minimize the time elapsing between the receipt and disbursement of federal funds. To that end, the Town will take the following corrective actions: 1. Formal Communication with Program Administrators: The Town will engage the appropriate contacts at the Louisiana Department of Environmental Quality and relevant federal partners to clarify disbursement protocols, timelines, and responsibilities under the CWSRF program. 2. Staff Training and Coordination: The Town will coordinate with the LDEQ and/or EPA to request or arrange formal training for municipal staff involved in the administration of federal grant funds, with a focus on cash management and financial compliance procedures. 3. Procedure Development: Following training and clarification from the funding agencies, the Town will develop internal procedures and documentation protocols to ensure that federal funds are disbursed as promptly as administratively possible upon receipt. The Town of Jonesboro affirms its commitment to fiscal transparency, accountability, and compliance with all applicable state and federal grant management requirements. We look forward to working collaboratively with our state and federal partners to improve administrative performance in all future program years.

View Audit 370560 Questioned Costs: $1

Finding 1160188 (2024-014)

Material Weakness 2024

Town of Jonesboro

LA

Procurement, Suspension & Debarment Eligibility

Policy Implementation: The Town is developing and implementing a written internal policy and checklist to ensure full compliance with suspension and debarment requirements for all federally funded projects. This policy will include procedures for: o Conducting and documenting searches in the SAM.gov...

Policy Implementation: The Town is developing and implementing a written internal policy and checklist to ensure full compliance with suspension and debarment requirements for all federally funded projects. This policy will include procedures for: o Conducting and documenting searches in the SAM.gov Exclusions system, o Requiring written certifications from all contractors and subcontractors, and o Ensuring that federal compliance clauses are incorporated in all future contracts funded with federal dollars. 2. Engineering Oversight Coordination: The Town acknowledges that coordination with its contracted engineering firm(s) is essential in maintaining federal compliance. Moving forward, we will work closely with our engineers to verify and document that all contractors and subcontractors meet federal eligibility requirements prior to award and contract execution. 3. Training and Compliance Awareness: The Town will ensure that applicable municipal personnel, as well as project managers working with federal grant funds, receive training or instruction on Uniform Guidance procurement standards, including suspension and debarment protocols.

View Audit 370560

Finding 1160187 (2024-007)

Material Weakness 2024

McLeod County

MN

Reporting § 200.303 § 200.502 § 200.510

Finding Number: 2024-007 Finding Title: Reporting Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Colleen Robeck, Finance Director Corrective Action Planned: McLeod County recognizes the importance of internal con...

Finding Number: 2024-007 Finding Title: Reporting Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Colleen Robeck, Finance Director Corrective Action Planned: McLeod County recognizes the importance of internal controls over federal awards to be in compliance with federal statutes, regulations, and terms and conditions of the federal award. McLeod County has corrected the misstatements of contracts payments that should have been originally charged to the COVID-19 Coronavirus State and Local Fiscal Recovery Funds expenditures. Anticipated Completion Date: This issue will be resolved by December 31, 2025.

View Audit 370557

Corrective Action Plans

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