Corrective Action Plans

Finding 519636 (2024-005)

Material Weakness 2024

CA

Subrecipient Monitoring Material Weakness

A comprehensive schedule for all sites for the entire year has been created. Responsible staff are assigned to visit the site on the dates outlined and then submit monitoring forms to the department secretary within 3 days. The Director of Nutrition Services will review all monitoring forms monthly ...

A comprehensive schedule for all sites for the entire year has been created. Responsible staff are assigned to visit the site on the dates outlined and then submit monitoring forms to the department secretary within 3 days. The Director of Nutrition Services will review all monitoring forms monthly with a review of corrective action plans within 45 days. In the event of staff absence or turnover, a backup staff member is assigned to conduct the site visit.

View Audit 338734

Finding 519633 (2024-003)

Material Weakness 2024

Upland Unified School District

CA

Questioned Costs Allowable Costs / Cost Principles

To ensure that federal funds are used appropriately and to correct the unallowable charges, the following will be implemented: 1. In collaboration with California Department of Education (CDE), qualifying expenditures will be transferred in the identified amount. The unqualified expenditure will be ...

To ensure that federal funds are used appropriately and to correct the unallowable charges, the following will be implemented: 1. In collaboration with California Department of Education (CDE), qualifying expenditures will be transferred in the identified amount. The unqualified expenditure will be transferred to another resource. 2. A formal Standardized Operative Procedure will be developed to ensure federal compliance, including expenditure reviews. 3. Staff will be trained on federal requirements and allowable costs. Costs will be reviewed with CDE and our auditing consultant to ensure compliance. 4. Expenditure will be approved by the Senior Fiscal Director and the Director of Equity and Access. 5. The Senior Fiscal Director will ensure accurate posting of Indirect Costs to programs.

View Audit 338734 Questioned Costs: $1

Finding 519631 (2024-001)

Significant Deficiency 2024

Edison Arms Housing Development Fund Co., Inc.

NY

Cash Management HUD Housing Programs Significant Deficiency

Management concurs with the finding. Beginning in fiscal 2025, management will open an interest bearing account insured by the Federal Deposit Insurance Corporation (“FDIC”) and transfer funds to the account to comply with HUD requirements. Our policies and procedures manual will be updated to mor...

Management concurs with the finding. Beginning in fiscal 2025, management will open an interest bearing account insured by the Federal Deposit Insurance Corporation (“FDIC”) and transfer funds to the account to comply with HUD requirements. Our policies and procedures manual will be updated to more clearly specify this HUD compliance requirement. We will continuously monitor HUD’s overall requirements, in order to maintain compliance on an ongoing basis.

View Audit 338733

Finding 519622 (2024-001)

Significant Deficiency 2024

Realife Cooperative of Hibbing South

MN

Reporting Internal Control / Segregation of Duties

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperativ...

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Planned Completion Date: Not Applicable.

View Audit 338711

Finding 519618 (2024-001)

Significant Deficiency 2024

Town of Avon, Connecticut

CT

Procurement, Suspension & Debarment

U.S. Department of the Treasury 2024-001 COVID-19 American Rescue Plan Act Local Fiscal Recovery – Assistance Listing No. 21.027 Recommendation: We recommend that the Town review its formal procurement policies and make necessary revisions to formally include policies and procedures to meet the req...

U.S. Department of the Treasury 2024-001 COVID-19 American Rescue Plan Act Local Fiscal Recovery – Assistance Listing No. 21.027 Recommendation: We recommend that the Town review its formal procurement policies and make necessary revisions to formally include policies and procedures to meet the requirements for verification that an entity with which the Town plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Town has revised the purchasing policies and procedures documented in the Finance Department Policy and Procedures Manual to add the requirement that any entity with which the Town plans to enter into a covered transaction is not debarred, suspended, otherwise excluded. Name(s) of the contact person(s) responsible for corrective action: Tom DiStasio, Director of Finance Planned completion date for corrective action plan: July 1, 2024

View Audit 338707

Finding 519614 (2024-003)

None 2024

Cleary University

MI

Subrecipient Monitoring

Gramm-Leach-Bliley Act (GLBA) Compliance Planned Corrective Action: To address the GLBA finding regarding sufficient vendor management policies and reviews, we are actively enhancing our oversight process by collecting security attestations (SOC or HECVAT) from all vendors. These attestations are ...

Gramm-Leach-Bliley Act (GLBA) Compliance Planned Corrective Action: To address the GLBA finding regarding sufficient vendor management policies and reviews, we are actively enhancing our oversight process by collecting security attestations (SOC or HECVAT) from all vendors. These attestations are being evaluated and translated into our newly developed risk matrix, which aligns with our broader risk management framework. This approach allows us to systematically assess each vendor's security posture and assign corresponding risk levels, ensuring compliance with GLBA requirements and supporting informed decision-making in vendor relationships Person Responsible for Corrective Action Plan: Eric Riddering, Chief Information Officer Anticipated Date of Completion: June 30, 2025

View Audit 338706

Finding 519612 (2024-002)

Significant Deficiency 2024

Cleary University

MI

Student Financial Aid Matching / Level of Effort / Earmarking Eligibility

Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Planned Corrective Action: A new Registrar was hired in late May of 2024. A new process was implemented for the Fall semester of 2024 to ensure timely and accurate processing of official and unofficial withdrawals. Outcom...

Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Planned Corrective Action: A new Registrar was hired in late May of 2024. A new process was implemented for the Fall semester of 2024 to ensure timely and accurate processing of official and unofficial withdrawals. Outcome: All student withdrawal requests both official and unofficial are processed daily and tracked in a shared workbook. This allows information about each individual withdrawal request to be captured and available for both the Business Office and Financial Aid. Date of Determination, Last Date of Attendance, Processed Date, withdrawal type, withdrawal reason, and credits impacted are all captured in the workbook to aid with R2T4 calculations. This workbook also serves as a document that can be audited in real-time to ensure accuracy of each student’s record. A Standard Operating Procedure was developed and used to train the team members effective on 8/12/2024. Person Responsible for Corrective Action Plan: Tonya Troka, University Registrar & Assistant Provost Anticipated Date of Completion: Completed and implemented for Fall 2024 Semester

View Audit 338706

Finding 519609 (2024-001)

Material Weakness 2024

Cleary University

MI

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Incorrect and Untimely Return of Title IV Funds Calculation (R2T4) Planned Corrective Action: See Below Cleary University identified compliance gaps in its Return of Title IV Funds (R2T4) reporting processes during the 2023-2024 award year. These issues stemmed from a lack of timely enforcement of ...

Incorrect and Untimely Return of Title IV Funds Calculation (R2T4) Planned Corrective Action: See Below Cleary University identified compliance gaps in its Return of Title IV Funds (R2T4) reporting processes during the 2023-2024 award year. These issues stemmed from a lack of timely enforcement of procedures and misinterpretation of R2T4 regulatory requirements, necessitating immediate corrective action and leadership changes. The Financial Aid Director was dismissed, and an experienced Assistant Vice President (AVP) of Financial Aid was hired to oversee compliance and ensure accurate implementation of federal regulations. Additional Financial Aid Data Specialists were hired to improve system efficiency and accuracy. An R2T4 Task force was established, meeting weekly to review Last Day of Attendance (LDA) data, monitor student drop processes, and ensure timely R2T4 calculations and funds returned. A structured process for R2T4 calculations was put in place, with cross-referencing from the Records Department, maintaining through documentation, and improving tracking and reporting. Cleary University has taken significant steps to address the issues and ensure compliance with R2T4 regulations. The revised process, implemented in July 2024, aims to prevent future delays and findings. Weekly checks and ongoing training will ensure that R2T4 processing is accurate, timely, and fully complaint with federal requirements, with a target processing completion of 20 days. Person Responsible for Corrective Action Plan: JoAnn Ross, Vice President of Financial Aid Anticipated Date of Completion: December 18, 2024

View Audit 338706

Finding 519608 (2024-005)

Significant Deficiency 2024

Board of Education Baltimore County

MD

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.430

Title III – Assistance Listing No. 84.364 Recommendation: We recommend that the Board reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The Board should not seek federal reimbursement unless it can substantiate that the time an...

Title III – Assistance Listing No. 84.364 Recommendation: We recommend that the Board reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The Board should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Director of Multilingual Achievement will ensure that Time and Effort Statements are completed two times each year. These documents will be completed and signed on January 6 and July 6 of each year. Name of the contact person responsible for corrective action: Sonja Bloetner, Director of Multilingual Achievement Planned completion date for corrective action plan: For immediate implementation and ongoing.

View Audit 338700 Questioned Costs: $1

Finding 519601 (2024-004)

Significant Deficiency 2024

Board of Education Baltimore County

MD

Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Title I – Assistance Listing No. 84.010 Recommendation: We recommend that the Board continue with established policies and procedures implemented in October 2023 to ensure that it obtains documentation to support student withdrawals and that this documentation is available for audit purposes. Explan...

Title I – Assistance Listing No. 84.010 Recommendation: We recommend that the Board continue with established policies and procedures implemented in October 2023 to ensure that it obtains documentation to support student withdrawals and that this documentation is available for audit purposes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: 1. A year-long induction and support program has been established for office professionals including those who serve as records secretaries and liaisons. All office professionals—regardless of job title and specific responsibilities— are strongly encouraged to participate in the induction and support program. Making the training available to all office professionals serves several purposes: a. addresses gaps in learning to maintain student records; b. corrects misunderstandings of enrollment and withdrawal practices and procedures; and c. supports integration of appropriate processes for the withdrawal practices and procedures (addition to training program 2025). Immediately following the training, the presentation, print materials, and video snippets will be made available to reinforce the learning outcomes and to be used throughout the year. 2. A procedural manual for records secretaries and liaisons will be developed, shared during training, and uploaded to Schoology for future reference. 3. Policy and Rule 5130 and 5150 will be shared with principals to support the processes for student withdrawal and the student record verification process. 4. Student Record Reviews will continue to take place. Student Record Reviews are conducted to ensure that students’ cumulative folders include the documentation required by MSDE and Policy/Rule 5150. 5. Policy and Rule 5150 will be reviewed with PPWs, residency investigators and principals to ensure that they are aware of the required documents necessary to approve an initial shared domicile application and renew a shared domicile application. Name of the contact person responsible for corrective action: Patricia Mustipher, Director of Department of Student Support Services Planned completion date for corrective action plan: Various dates beginning in October 2023 through March 2025.

View Audit 338700

Finding 519599 (2024-003)

Significant Deficiency 2024

Board of Education Baltimore County

MD

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.430

Title I – Assistance Listing No. 84.010 Recommendation: We recommend that the Board reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The Board should not seek federal reimbursement unless it can substantiate that the time and ...

Title I – Assistance Listing No. 84.010 Recommendation: We recommend that the Board reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The Board should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Weekly payroll runs will be cross-referenced with Title I position logs. Any discrepancies will be investigated promptly. • Unauthorized Employees: Employees not listed on Title I position logs will be removed from payroll to ensure only sponsored employees are attributed to the grant. • Missing Sponsored Employees: Sponsored employees not appearing on payroll reports will be investigated to determine the cause and appropriate corrective actions will be taken. Names of the contact persons responsible for corrective action: Michele Stansbury, Director of Title I Deanna Ashenfelter, Accounting Manager Brent Harry, Fiscal Supervisor III Planned completion date for corrective action plan: Implemented September 17, 2024

View Audit 338700 Questioned Costs: $1

Finding 519592 (2024-002)

Significant Deficiency 2024

Board of Education Baltimore County

MD

Procurement, Suspension & Debarment § 200.303 § 200.318 § 200.320 § 200.327

Child Nutrition Cluster – Assistance Listing No. 10.553, 10.555, 10.559, and 10.582 Recommendation: We recommend that the Board enhance controls and procedures to ensure that it follows its procurement policies for all goods and services charged to the program. Documentation should be readily availa...

Child Nutrition Cluster – Assistance Listing No. 10.553, 10.555, 10.559, and 10.582 Recommendation: We recommend that the Board enhance controls and procedures to ensure that it follows its procurement policies for all goods and services charged to the program. Documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Purchasing procedures and thresholds were discussed at a leadership meeting of the Department of Food and Nutrition Services. Specifically, the need for at least two quotes for purchases between $15,000 and $50,000 was reiterated. On an ongoing basis, expenditures by vendor will be reviewed to ensure compliance with the procurement policy. Name of the contact person responsible for corrective action: Jaime Hetzler, Director of Food and Nutrition Services Planned completion date for corrective action plan: For immediate implementation and ongoing.

View Audit 338700

Finding 519587 (2024-001)

Significant Deficiency 2024

Desert Community College District

CA

Student Financial Aid Reporting Significant Deficiency

While reviewing the follow up questions along regarding enrollment reporting, a discovery was made that there could have been issues with the query that was used to create the lists to be sent to National Student Clearinghouse. A new version of the query was created mid-July 2023. This query was lac...

While reviewing the follow up questions along regarding enrollment reporting, a discovery was made that there could have been issues with the query that was used to create the lists to be sent to National Student Clearinghouse. A new version of the query was created mid-July 2023. This query was lacking 3 current student statuses that would have prevented them from picked up transmitted/uploaded to National Student Clearinghouse. The original query was missing a status that was introduced in 2023, which was around summer/spring 2023, which is why the second query was created to pull that new status. Moving forward, we will create a new query for all future reports that use all current statuses.

View Audit 338695

Finding 519584 (2024-001)

Material Weakness 2024

The Edinburg Center, Inc.

MA

Questioned Costs Material Weakness Reporting

U.S. Department of Mental Health 2024-001 Block Grants for Community Mental Health Services – Assistance Listing No. 93.958 Recommendation: It is recommended that the Organization design controls to ensure time and effort spent on programs are properly documented in accordance with Uniform Guidance...

U.S. Department of Mental Health 2024-001 Block Grants for Community Mental Health Services – Assistance Listing No. 93.958 Recommendation: It is recommended that the Organization design controls to ensure time and effort spent on programs are properly documented in accordance with Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Edinburg will be implementing procedures in accordance with 2 CFR 200.430(i) by collecting effort reports for exempt employees who are split across multiple federally funded contracts for each payroll period. Non-exempt employees will be required to complete their time and effort reporting within our payroll module, which will maintain the record and electronic signatures. Any corrections will be collected and reconciled before the contract period is closed. Name(s) of the contact person(s) responsible for corrective action: Debra Veth, Planned completion date for corrective action plan: 6/30/2025 If the U.S. Department of Mental Health has questions regarding this plan, please call Debra Veth at 781-761-5139 or email dveth@edinburgcenter.org

View Audit 338692 Questioned Costs: $1

Finding 519583 (2024-001)

None 2024

Creative Living Housing Corporation

OH

Questioned Costs HUD Housing Programs Cash Management

The Corporation concurs that they did not deposit surplus cash for the year ended September 30, 2023 into the residual receipts account within 60 days after year-end. The Corporation has deposited surplus cash into the residual receipts account as of September 30, 2024 and has implemented procedures...

The Corporation concurs that they did not deposit surplus cash for the year ended September 30, 2023 into the residual receipts account within 60 days after year-end. The Corporation has deposited surplus cash into the residual receipts account as of September 30, 2024 and has implemented procedures to ensure any future surplus cash deposits into the residual receipts account are made within 60 days after year-end.

View Audit 338684 Questioned Costs: $1

Finding 519564 (2024-001)

Significant Deficiency 2024

San Diego Biomedical Research Institute

CA

Cash Management

CORRECTIVE ACTION PLAN San Diego Biomedical Research Institute respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Leaf & Cole, LLP 2810 Camino Del Rio South, Suite 200 San Diego, California 92108 A...

CORRECTIVE ACTION PLAN San Diego Biomedical Research Institute respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Leaf & Cole, LLP 2810 Camino Del Rio South, Suite 200 San Diego, California 92108 Audit period: June 30, 2024 The findings from the June 30, 2024 comments are discussed below. The findings are numbered consistently with the numbers assigned in the Schedule of Findings and Questions Cost (“Schedule”). Section II of the Schedule does not include findings and is not addressed. Section III - Federal Award Findings and Questioned Costs: Finding 2024-001: Cash Management - Research and Development Cluster Condition Funds were drawn down by the Institute in excess of the three-day period recommended by its funding agency and did not minimize the time elapsing between the transfers of funds from the grantor to the issue of payment by the recipient during the year ended June 30, 2024. Criteria Cash management under 2 CFR 215.22 states that payment methods shall minimize the time elapsing between the transfers of funds from the grantor to the issue of payment by the recipient Cause The Institute’s preparation and review procedures over the draw down of funds were insufficient to minimize the time elapsing between the transfers of funds from the grantor to the issue of payments by the Institute. Effect The Institute was not in compliance with the cash management compliance requirements stated in 2 CFR 215.22 during the year and the Institute had an overdrawn balance of $481,959 at June 30, 2024. Recommendation The Institute should improve its procedures over advances of federal funds. Management Response Establish a reserve amount to avoid drawing down all available funds, ensuring that there is always sufficient cash flow to meet operational needs. This reserve is intended to cover unexpected expenses, emergencies, or fluctuations in cash flow. Actions Taken The institute has subsequently obtained a $900,000 loan, to support its daily cash flow needs, and to eliminate the conditions leading to the FY’24 audit findings.

View Audit 338662

Finding 519563 (2024-004)

None 2024

Village of Angel Fire

NM

Reporting

Village will submit package within the time requirements.

View Audit 338652

Finding 519561 (2024-002)

Significant Deficiency 2024

Franklin County, North Carolina

NC

Eligibility Significant Deficiency Equipment & Real Property Management

Finding: 2024-2 Name of contact person: Amanda Murphy, Economic Programs Administrator Corrective Action: Corrections to the proper verifications, documentation or computation, income and policy findings have been completed. Supervisors have reviewed with individual staff the errors along with condu...

Finding: 2024-2 Name of contact person: Amanda Murphy, Economic Programs Administrator Corrective Action: Corrections to the proper verifications, documentation or computation, income and policy findings have been completed. Supervisors have reviewed with individual staff the errors along with conducting collective unit training on correct policy and keying procedures to ensure future accuracy. The Medicaid Supervisors. Lead Workers, and Quality Assurance team will continue to conduct monthly second party reviews as well as monthly policy/system training to improve quality in all areas. Proposed Completion Date: June 2025

View Audit 338641

Finding 519557 (2024-002)

Significant Deficiency 2024

Northeast Iowa Food Bank

IA

Eligibility School Nutrition Programs

Lack of documentation surrounding TEFAP eligibility. Responsible Individuals: Barbara Prather, Executive Director Corrective Action Plan: The Food Bank has implemented procedures to ensure TEFAP forms are updated annually and proper documentation is kept. Date of Completion: ...

Lack of documentation surrounding TEFAP eligibility. Responsible Individuals: Barbara Prather, Executive Director Corrective Action Plan: The Food Bank has implemented procedures to ensure TEFAP forms are updated annually and proper documentation is kept. Date of Completion: December 31, 2024

View Audit 338638

Finding 519556 (2024-002)

Significant Deficiency 2024

McSherrystown Interfaith Housing Corporation

PA

HUD Housing Programs Significant Deficiency

McSherrystown Interfaith Housing Corporation 40 E. High Street, Gettysburg, PA 17325 Phone (717) 334-1518 • Fax (717) 334-8326 TDD/TTY Relay Service: 1-800-654-5984 www.adamscha.org CORRECTIVE ACTION PLAN JANUARY 8, 2025 McSherrystown Interfaith Housing Corporation respectfully submits the followin...

McSherrystown Interfaith Housing Corporation 40 E. High Street, Gettysburg, PA 17325 Phone (717) 334-1518 • Fax (717) 334-8326 TDD/TTY Relay Service: 1-800-654-5984 www.adamscha.org CORRECTIVE ACTION PLAN JANUARY 8, 2025 McSherrystown Interfaith Housing Corporation respectfully submits the following corrective action plan for the year ended September 30, 2024. Cognizant or Oversight Agency for Audit: Mortgage Insurance Rental Housing, ALN #14.134 Name and address of independent public accounting firm: Hamilton & Musser, PC 176 Cumberland Parkway Mechanicsburg, PA 17055 Audit Period: October 1, 2023 - September 30, 2024 The finding from the September 30, 2023 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings and Questioned Costs - Major Federal Award Programs Audit: #2024-002 - Significant Deficiency-Reconciliation of Escrow Accounts Mortgage Insurance Rental Housing, ALN #14.134 Recommendation We recommend that McSherrystown Interfaith Housing Corporation request a revised PUPM rate from HUD as the management fee expensed has not reached the maximum of 6.04% outlined in the management agreement with the management agent, but is capped below this level due to the original PUPM rate agreed upon. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement. We will work with HUD to increase the PUPM rate going forward and implement controls to ensure the management fees stay within the agreed upon limits. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call McSherrystown Interfaith Housing Corporation Executive Director, Stephanie McIIwee at (717) 334-1518.

View Audit 338629

Finding 519549 (2024-002)

Significant Deficiency 2024

Independent School District 701

MN

Internal Control / Segregation of Duties Subrecipient Monitoring

Inadequate Segregation of Duties Actions Planned - The school district has implemented a process for federal programs by distributing duties, and adding additional oversight. Program managers are assigned to monitor and give oversigh...

Inadequate Segregation of Duties Actions Planned - The school district has implemented a process for federal programs by distributing duties, and adding additional oversight. Program managers are assigned to monitor and give oversight approval for federal fund expenses and budgets. Program managers sign off on all receipts and disbursements. Monthly reports given to program managers to assist in the oversight. The Special Education Director acts as a program manager for special ed funds, a Principal acts as a program manager for Title funds, and the Superintendent acts as program manager for all other federal funds. Request for reimbursement and receipting is completed by the Administrative Assistant with oversight by the Business Manager and Superintendent. The key action to eliminate inadequate segregation of duties is developing strong controls over the review and approval of adjusting journal entires. This involves detailed review by the program manager and the Superintendent. Adjusting journal entries are discussed and signed off on each month to timely detect misstatements. Official Responsible - Business Manager and Superintendent of Schools Planned Completion Date - December 31, 2024 Disagreement with Finding - None - ISD #701 - Hibbing concurs with the finding. Plan to monitor - The District is aware of the situation and will monitor, as it deems appropriate. Monitoring will include educating program managers to provide additional oversight fo the interim and year end reportin. This finding will like be ongoing due to limited resources.

View Audit 338628

Finding 519547 (2024-004)

Significant Deficiency 2024

Dugger Union Community Schools CORP

IN

Procurement, Suspension & Debarment § 200.318

Criteria: According to 2CFR 200.318(i) the recipient or subrecipient must maintain records sufficient to detail the history of each procurement transaction. The records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis fo...

Criteria: According to 2CFR 200.318(i) the recipient or subrecipient must maintain records sufficient to detail the history of each procurement transaction. The records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. Condition: The School did not maintain records for a food vendor that met the simplified acquisition threshold for the year. Cause: The School's procurement policies do not address the frequency of which vendors should be evaluated. In addition, the policies also do not address records retention. Potential Effect: The procurement may not have been proper under the grant requirements. Recommendation: We recommend that the School follow federal procurement guidelines for each of the different purchase thresholds for each vendor. We further recommend that the School retain any documentation created related to the procurement selection and vetting process. Action: As of the date of this exit conference, we will adopt the above recommendations, securing and retaining the appropriate documentation of vendor selection and retention.

View Audit 338615

Finding 519544 (2024-001)

Material Weakness 2024

Dugger Union Community Schools CORP

IN

Reporting § 200.510

Criteria: According to 2CFR 200.510(b), the auditee must repare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the financial stat ments that includes all amounts spent on federal programs subject to single audit during the reporting period. Condition: The client prepar...

Criteria: According to 2CFR 200.510(b), the auditee must repare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the financial stat ments that includes all amounts spent on federal programs subject to single audit during the reporting period. Condition: The client prepared Schedule of Federal Expen itures of Federal Awards (SEFA) unde stated the Child Nutrition Cluster 10.555/10.553 expenses by $19,651 and understated Education Stabilization Fund 84.425U expenditures by $81,428. Lastly, the client prepared SEFA overstated federal expenditures by $69,851 for a federal award that is not subject to single audit requirements. Cause: The School reported 2024 program revenue rather than expenditures for the Child Nutrit on Cluster 10.555/10.553. The School's review procedures did not catch a federal award that was excluded from the SEFA, nor a federal award that was included in the SEFA that should not have been. Effect: Audit adjustments were made to increase the Child Nutrition Cluster 10.555/10.553 expenses by $19,651 and increase the Education Stabilization Fund 84.425U expenditures by $81,428. Lastly, an audit adjustment was made to reduce federal expenditures b $69,851 for a federal award that is nit subject to single audit requirements. Recommendation: We recommend the School prepare the SEFA utilizing federal award expenfitures, rather than revenue. In addition, we recommend that he school's SEFA review procedures in 1ude a comparison to the prior year audited SEFA for awards that may have been excluded. Lastly, we recommend that the school research each new federal award on SAM.gov to determine whetlher Single audit requirements apply. Action Taken: As of the date of the exit conference, we have adopted the above recommendations.

View Audit 338615

Finding 519543 (2024-001)

None 2024

Board of Control for Southern Regional Education

FL

Questioned Costs Reporting § 200.302 § 200.328

As part of the 2023-2024 FY audit, there was a finding of non-compliance on financial reporting for a late filing. The corrective action plan is to implement new policies to ensure timely financial compliance with all grant requirements. For questions, please contact Katie Harris, the Director of Fi...

As part of the 2023-2024 FY audit, there was a finding of non-compliance on financial reporting for a late filing. The corrective action plan is to implement new policies to ensure timely financial compliance with all grant requirements. For questions, please contact Katie Harris, the Director of Finance. The board plans to enact these new policies as of June 30th, 2025.

View Audit 338605 Questioned Costs: $1

Finding 519542 (2024-001)

Significant Deficiency 2024

Colony Square Cooperative

MN

Reporting Internal Control / Segregation of Duties

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperativ...

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Planned Completion Date: Not Applicable.

View Audit 338604

Corrective Action Plans

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