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The Chancellor’s Office established and implemented SLFRF emergency financial assistance grants policies and procedures. The policies and procedures can be found on the following website: State Fiscal Recovery Funds - Emergency Financial Assistance for California Community College Students. These po...
The Chancellor’s Office established and implemented SLFRF emergency financial assistance grants policies and procedures. The policies and procedures can be found on the following website: State Fiscal Recovery Funds - Emergency Financial Assistance for California Community College Students. These policies and procedures included a self-certification process to certify that students met SLFRF eligibility requirements, expenditure tracking and management information system data reporting, a monitoring plan, and state compliance procedures through the annual Contracted District Audit Manual for the 2021-22, 2022-23, and 2023-24 fiscal years. The Chancellor’s Office intends to include SLFRF compliance procedures in the upcoming 2024-25 fiscal year Contracted District Audit Manual. The intent of both the policies and procedures as well as the Audit requirements are intended to address the Chancellor’s Office need to: (1) maintain effective internal controls regarding its use of the applicable SLFRF Federal award funding, (2) assess each community college’s risk of potential noncompliance with SLFRF subaward federal statutes, regulations and terms and conditions, and (3) validate that community colleges expended the SLFRF resources in accordance with federal statutes, regulations and terms and conditions. The Chancellor’s Office will coordinate with the Department of Finance as needed to revise the funding source of expenditures that are determined to be ineligible to be supported by SLFRF resources. The Chancellor’s Office will also work with community college districts to ensure any SLFRF funds awarded to ineligible students are adjusted in districts’ accounting records to the proper state funding source. The Chancellor’s Office will continue to communicate the SLFRF emergency financial assistance grants policies and procedures to California Community districts as needed. Additionally, the Chancellor’s Office will continue to receive copies of each district’s annual audit and audit findings as determined through the Contracted District Audit Manual process. The Chancellor’s Office will also continue to review and revise the SLFRF policies and procedures, and memorandums as needed to ensure the required federal award identification information and retention process information is available to community college districts. In conclusion, the Chancellor’s Office appreciates the focus toward ensuring the successful implementation of the emergency financial assistance grant program and in support of our students’ success. The SLFRF grants provided low-income students who were disproportionately impacted by the COVID-19 pandemic emergency support to continue with their enrollment, improve their economic mobility, complete their educational goals, and contribute to California’s economy in a meaningful way. Estimated Implementation Date: December 15, 2025 Contact: Chris Ferguson Executive Vice Chancellor of Finance and Strategic Initiatives California Community Colleges Chancellor’s Office
California Department of Transportation (Caltrans) has determined that federal award information is not always disseminated to the project managers. Caltrans will review current policies and procedures of each division and revise, if necessary, so that best practices are followed. Caltrans Internal ...
California Department of Transportation (Caltrans) has determined that federal award information is not always disseminated to the project managers. Caltrans will review current policies and procedures of each division and revise, if necessary, so that best practices are followed. Caltrans Internal Audits Office will be working with Local Assistance’s single audit report monitoring process and take on the responsibility to monitor for all Caltrans divisions. Estimated Implementation Date: June 2025 Contact: Ben Shelton, Chief – Caltrans Internal Audits Office Division of Risk and Strategic Management
Finding 554122 (2023-005)
Significant Deficiency 2023
As reported in the prior year’s response, since fiscal year 2020-21, the Employment Development Department (EDD) has implemented dozens of strict anti-fraud measures and has continued to evaluate and enhance its fraud detection. EDD has also developed internal fraud working groups and a multiagency ...
As reported in the prior year’s response, since fiscal year 2020-21, the Employment Development Department (EDD) has implemented dozens of strict anti-fraud measures and has continued to evaluate and enhance its fraud detection. EDD has also developed internal fraud working groups and a multiagency fraud task force that reviews fraud data and fraud reports on a continual basis and recommends adjustments to filters and tools as necessary. EDD has successfully halted two large fraud scheme attempts over the previous two years and continues to work towards immediate detection and prevention of fraud attempts. EDD will continue to analyze and assess our processes to stay ahead of the ever-evolving fraud landscape. As previously described, EDD implemented the following measures to address the nationwide fraud attempts perpetrated against the new emergency federal benefit programs in 2020-21: • Implemented additional cross-matches in September 2020 to detect multiple claims per address. • Ceased automatically backdating PUA claims under federal rules in September 2020. • Strengthened identity verification procedures in October 2020 by implementing ID.me. • Implemented additional cross-matches in November 2020 against state inmate information. • Vetted applications against law enforcement databases and other tools provided by Thomson Reuters in December 2020 to further curb identity and non-identity fraud. • Established a 1099-G call center to help victims of identity theft deal with any tax-related questions. • Ceased printing Social Security numbers on mailed documents to reduce identity theft risk. • Enhanced benefit card security with Bank of America. • Partnered with state, local and federal law enforcement agencies to support thousands of criminal investigations, arrests, prosecutions and convictions. Estimated Implementation Date: Completed September 2024 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department
View Audit 352774 Questioned Costs: $1
As reported in the prior year’s response, given the unprecedented volume of unemployment insurance claims during the federal disaster—approximately 20 million claims compared to 3.8 million during the Great Recession—EDD took action to speed payments to eligible claimants whenever possible. For exam...
As reported in the prior year’s response, given the unprecedented volume of unemployment insurance claims during the federal disaster—approximately 20 million claims compared to 3.8 million during the Great Recession—EDD took action to speed payments to eligible claimants whenever possible. For example, EDD launched in July 2021 a Conditional Payment Program to speed payments to claimants who certified for benefits and already received at least one week of benefits in the past but whose payments were later pending for more than two weeks. EDD also boosted its capacity to process workloads, prioritized timely payments, and employed automation among other measures. EDD began automatically cross-matching EDD wage records and Franchise Tax Board records in November 2020 to assist in verifying the income of PUA claimants who could not be automatically verified through these procedures. Such claimants were required to submit additional documentation to EDD for a manual review. Regarding the manual processing of the income documents to substantiate the PUA weekly benefit amounts that have been increased above the minimum California WBA of $167, and the verification of employment or self-employment substantiation (known in California as “Self-employment/Employment Substantiation” or “SEES”), based on the U.S. Department of Labor’s (DOL) guidance in Unemployment Insurance Program Letter 05 24, EDD notified DOL on February 6, 2024, that California Unemployment Insurance Code (CUIC) section 1376 bars EDD from resolving the wage verification and self-employment verification items. Section 1376 provides that EDD cannot establish overpayments more than one year after the close of the benefit year in which the overpayment was made unless the overpayment is found to be a result of fraud, misrepresentation, or willful nondisclosure. Given that there is no fraud in creating these overpayments on the part of the individuals identified in these populations, EDD is no longer able to establish overpayments for these populations. On May 31, 2024, DOL notified EDD that the February 6, 2024, submission regarding how California’s finality laws affect the actions required to correct the wage verification and self-employment findings is sufficient to close these findings. Estimated Implementation Date: Completed May 2024 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department
View Audit 352774 Questioned Costs: $1
Finding 554120 (2023-003)
Significant Deficiency 2023
Reference No. 2023-003: The EDD resumed adjudicating all potential eligibility issues as of January 2021 and completed the retroactive determination workload on April 30, 2023. Estimated Implementation Date: Completed April 2024 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch ...
Reference No. 2023-003: The EDD resumed adjudicating all potential eligibility issues as of January 2021 and completed the retroactive determination workload on April 30, 2023. Estimated Implementation Date: Completed April 2024 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department
View Audit 352774 Questioned Costs: $1
Finding 554119 (2023-002)
Significant Deficiency 2023
Public Health’s WIC Division will strengthen its procedures for verifying the suspension and debarment status of vendors with option “(c) Adding a clause or a condition to the covered transactions with that person” provided above, to not include vendors in the contracting process as part of an exist...
Public Health’s WIC Division will strengthen its procedures for verifying the suspension and debarment status of vendors with option “(c) Adding a clause or a condition to the covered transactions with that person” provided above, to not include vendors in the contracting process as part of an existing Public Health exhibit that incorporates the required suspension and debarment clause or condition. For the remaining procurements not covered by the existing Public Health exhibit, the WIC Division will utilize option “(a) Checking SAM Exclusions” provided above and attach to the procurement a printout of the appropriate page from the SAM Exclusion website at the time the package is submitted into Public Health’s Contract and Purchasing System (CAPS). Estimated Implementation Date: January 2025 Contact: William Welch, Assistant Division Director, Operations Center for Family Health, WIC Division California Department of Public Health
Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Admi...
Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Corrective Action Plan: In response to FY21 Corrective Action Plan, CFSC implemented an updated Subrecipient Monitoring Policy in June 2024 to ensure compliance with Uniform Guidance, including subrecipient risk assessment and audit review requirements. To further strengthen compliance and eliminate inconsistencies in subrecipient risk assessments, CFSC will implement the following corrective actions: 1.Mandatory Pre-Award Risk Assessment & Documentation: a.The Grants Manager will have the responsibility to ensure that a Subrecipient Risk Assessment Form is completed and documented for all subawards before execution. b.Risk assessment findings will be stored in the subrecipients grant file and reviewed during routine monitoring. c.Any subrecipients classified as high risk will be subject to enhanced monitoring procedures to be carried out by the assigned Grant Specialist, which may include additional financial oversight and/or more frequent reporting. 2.Systematic Audit review & compliance tracking: a.The Grants Manager will be responsible for ensuring timely collection and review of subrecipient audit reports. 3.Quarterly Compliance Audits of Risks Assessments & Audit Reviews: a.The Grants Manager will conduct quarterly internal audits to confirm: i.All subrecipients have undergone documented risk assessments before receiving funds. ii.All subrecipient audits have been collected, reviewed, and properly documented. iii.Any identified audit findings have been addressed with documented corrective actions. Anticipated Completion Date: These corrective actions will be fully implemented by the end of Quarter 2 of FY25.
Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Admi...
Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Corrective Action Plan:In response to the FY21 Corrective Action Plan, CFSC implemented a Subrecipient Monitoring Policy in June 2024 to ensure compliance with the Uniform Guidance for monitoring subrecipients of federal funding, including audit requirements and the verification of suspension and debarment status. To further strengthen compliance and ensure timely verification, CFSC will implement the following actions: 1.Mandatory Pre-Award Verification Timing & Documentation: a.Suspension and debarment status must be verified on SAM.gov by the assigned Grant Specialist before the execution of any subaward agreements. b.The verification data and results will be documented by the assigned Grant Specialist and included in the Risk Assessment process prior to award issuance. c.Any subrecipients flagged as high risk due to past audit findings will undergo enhanced pre-award due diligence before subaward execution to be carried out by the assigned Grant Specialist. 2.Grant Compliance Oversight & Approval: a.The Grants Manager (or designee) will review and approve all subrecipient compliance checks before final award execution. b.Any exceptions or delays in verification must be documented and approved by the CFAO & Deputy Director before proceeding. 3.Quarterly Compliance Audits: a.The Grants Manager (or designee) will conduct quarterly internal audits of subrecipient monitoring files to confirm that suspension & debarment verification was completed timely before subaward execution. b.The Grants Manager will be responsible for reporting any identified deficiencies to senior management and ensuring timely correction for policy reinforcement. Anticipated Completion Date: These corrective actions will be fully implemented by the end of Quarter 2 of FY25, with ongoing monitoring and enforcement thereafter.
The purchase in question is related to the LSC Disaster funding. One of the primary purposes of this funding was to purchase a vehicle to enable OILS to provide quick response to disasters in Oklahoma. Due to LSC guidelines, OILS was required to receive prior approval from LSC for the purchase, whic...
The purchase in question is related to the LSC Disaster funding. One of the primary purposes of this funding was to purchase a vehicle to enable OILS to provide quick response to disasters in Oklahoma. Due to LSC guidelines, OILS was required to receive prior approval from LSC for the purchase, which OILS did request and receive. Additionally, the purchase of the vehicle was included in the annual budget approved by the Board of Directors. Clarifying language will be added to the Finance Manual under Section 6.1 Purchases to indicate that the Executive Director is authorized to execute all purchases in any amount, wherein the Board of Directors has provided prior approval and/or the funds for the activity have been appropriated in the adopted annual budget, including any contingency budget. Additionally, the management team collectively will work to ensure that purchases within the policy approval limits are brought to the Board for review and approval and that the approval is reflected in the meeting minutes. Anticipated Date of Conpletion: Revisions to teh Finance Manual, including the clarifying language in Section 6.1, will be submitted to the Board of Directors for adoption no later than the November 12, board meeting.
A list of critical system access for the Controller and/or CFO has been developed. When a planned or unplanned departure is to occur, the incoming or remaining staff can ensure access is gained to those systems. Responsible Person Contact - Mary Lou Tate, CFO Anticipated Completion Date - June 2024
A list of critical system access for the Controller and/or CFO has been developed. When a planned or unplanned departure is to occur, the incoming or remaining staff can ensure access is gained to those systems. Responsible Person Contact - Mary Lou Tate, CFO Anticipated Completion Date - June 2024
A meeting is held prior to audit with all accountants, Controller and CFO prior to audit to review total amount of grants awarded and/or funds received or spent. Responsible Contact Person - Mary Lou Tate, CFO Anctipated Completion Date - June 2024
A meeting is held prior to audit with all accountants, Controller and CFO prior to audit to review total amount of grants awarded and/or funds received or spent. Responsible Contact Person - Mary Lou Tate, CFO Anctipated Completion Date - June 2024
Finding 554028 (2023-001)
Significant Deficiency 2023
The deficiency occurred due to such documentation not received or forwarded from former personnel, and perhaps inadequate training by former personnel on compliance requirements. Mana Maoli plans to facilitate increased training for all personnel using debit cards to increase competency and complian...
The deficiency occurred due to such documentation not received or forwarded from former personnel, and perhaps inadequate training by former personnel on compliance requirements. Mana Maoli plans to facilitate increased training for all personnel using debit cards to increase competency and compliance under 2 CFR § 200.302(b)(3) and 2 CFR § 200.403(g). Prior to and during the course of the FY2023 audit, Mana Maoli has already taken steps to train our personnel before issuing debit cards to better ensure staff understand the importance of receipt retention. Staff training focuses on how to implement and comply with federal documentation retention policies. As our new training protocols continue to be implemented, we will monitor for more comprehensive receipt retention and approvals. Mana Maoli’s management will evaluate and monitor the training’s effectiveness in producing more timely receipt retention. The responsible persons for training staff are Ruth Faioso Leau, Finance Manager, and Erik Yoshimoto, Office Manager. We will assess, monitor, and verify ongoing compliance for the second half of FY2025 and will have the new training protocol fully implemented by the first half of FY2026. Each quarter, the Finance Director will review a sample of federal disbursements that supporting documentation is maintained. The results will be reported to senior management. In conclusion, we will be taking steps immediately to address the findings in the audit. If additional information is needed, please contact Ruth Faioso Leau, Finance Director at faioso@manamaoli.org or 808-753-8746.
Abrupt transitions in management caused a lapse in organizational knowledge, but new leadership has taken the proper steps to be audit-ready at all times. An in house bookkeeper position is in the process of being filled and an outside bookkeeper has been hired.
Abrupt transitions in management caused a lapse in organizational knowledge, but new leadership has taken the proper steps to be audit-ready at all times. An in house bookkeeper position is in the process of being filled and an outside bookkeeper has been hired.
Finding Number: 2023-010 Planned Corrective Action: The Treasurer will use the district’s general ledger to complete Final Expenditure Reports. The Treasurer will also reconcile the General Ledger Budget for each individual grant to the CCIP budget. This process will assure accurate data is provi...
Finding Number: 2023-010 Planned Corrective Action: The Treasurer will use the district’s general ledger to complete Final Expenditure Reports. The Treasurer will also reconcile the General Ledger Budget for each individual grant to the CCIP budget. This process will assure accurate data is provided. Anticipated Completion Date: September 30, 2025 Responsible Contact Person: Ashley Miller
Finding Number: 2023-009 Planned Corrective Action: The Treasurer will monitor future grants for this requirement. At the writing of this response ARP ESSER grants for the district have been completely expended. Anticipated Completion Date: March 1, 2025 Responsible Contact Person: Ashley Miller
Finding Number: 2023-009 Planned Corrective Action: The Treasurer will monitor future grants for this requirement. At the writing of this response ARP ESSER grants for the district have been completely expended. Anticipated Completion Date: March 1, 2025 Responsible Contact Person: Ashley Miller
View Audit 352599 Questioned Costs: $1
Finding Number: 2023-008 Planned Corrective Action: The district will review their records to determine when the last physical inventory was completed and devise a plan to bring the district into compliance. Anticipated Completion Date: June 30, 2025 Responsible Contact Person: Ashley Miller
Finding Number: 2023-008 Planned Corrective Action: The district will review their records to determine when the last physical inventory was completed and devise a plan to bring the district into compliance. Anticipated Completion Date: June 30, 2025 Responsible Contact Person: Ashley Miller
Finding Number: 2023-007 Planned Corrective Action: The District will follow the requirements of the Davis Bacon Act in the future when using federal grant dollars for construction. Anticipated Completion Date: March 1, 2025 Responsible Contact Person: Ashley Miller
Finding Number: 2023-007 Planned Corrective Action: The District will follow the requirements of the Davis Bacon Act in the future when using federal grant dollars for construction. Anticipated Completion Date: March 1, 2025 Responsible Contact Person: Ashley Miller
Finding Number: 2023-006 Planned Corrective Action: The corrective action in 2023-005 will assist in providing accurate financial information when completing the Schedule of Expenditures of Federal Awards. Anticipated Completion Date: March 1, 2025 Responsible Contact Person: Ashley Miller
Finding Number: 2023-006 Planned Corrective Action: The corrective action in 2023-005 will assist in providing accurate financial information when completing the Schedule of Expenditures of Federal Awards. Anticipated Completion Date: March 1, 2025 Responsible Contact Person: Ashley Miller
Finding 553879 (2023-006)
Material Weakness 2023
Consortium’s Fiscal Agent Executive Director and Chief Fiscal Officer shall review and approve each invoice/payment in order to determine that expenditures are in accordance with grant requirements and Federal laws and such approval should be documented on each invoice/payment.
Consortium’s Fiscal Agent Executive Director and Chief Fiscal Officer shall review and approve each invoice/payment in order to determine that expenditures are in accordance with grant requirements and Federal laws and such approval should be documented on each invoice/payment.
Finding 553873 (2023-005)
Material Weakness 2023
Consortium shall implement procedures to ensure quarterly reports are filed no later than the tenth calendar day of the second month following the quarter the report represents. In addition, all data reported thru these quarterly reports should be supported by the accounting system of the Fiscal Age...
Consortium shall implement procedures to ensure quarterly reports are filed no later than the tenth calendar day of the second month following the quarter the report represents. In addition, all data reported thru these quarterly reports should be supported by the accounting system of the Fiscal Agent and County Financial Information System (CFIS). This practice was put into place on April 10, 2024.
Finding 553867 (2023-004)
Material Weakness 2023
Consortium’s Fiscal Agent will ensure that supporting documentation will be maintained for all expenditures to ensure that each expenditure charged to the program is for an allowable activity/cost.
Consortium’s Fiscal Agent will ensure that supporting documentation will be maintained for all expenditures to ensure that each expenditure charged to the program is for an allowable activity/cost.
Finding 553823 (2023-004)
Significant Deficiency 2023
FINDING #2023-004: Written Uniform Guidance Policies Responsible Individuals: Jessicca McKeown, Finance Officer Corrective Action Plan: The City is working on developing written Uniform Guidance policies. Anticipated Completion Date: Ongoing
FINDING #2023-004: Written Uniform Guidance Policies Responsible Individuals: Jessicca McKeown, Finance Officer Corrective Action Plan: The City is working on developing written Uniform Guidance policies. Anticipated Completion Date: Ongoing
FIDNING #2023-001: Financial Statement and Schedule of Expenditure of Federal Awards (SEFA) Preparation Responsible Individuals: Jessicca McKeown, Finance Officer Corrective Action Plan: The City Finance Officer reviews the financial statements and SEFA in detail each year. It is more cost effective...
FIDNING #2023-001: Financial Statement and Schedule of Expenditure of Federal Awards (SEFA) Preparation Responsible Individuals: Jessicca McKeown, Finance Officer Corrective Action Plan: The City Finance Officer reviews the financial statements and SEFA in detail each year. It is more cost effective and efficient for a public accounting firm to prepare the financial statements during the audit process. The City will continue to have the auditor prepare the annual financial statements. Anticipated Completion Date: Ongoing
Develop external reporting matrix/schedule and report it to the Board of Directors by March 2025
Develop external reporting matrix/schedule and report it to the Board of Directors by March 2025
Develop external reporting matrix/schedule and report it to the Board of Directors by March 2025
Develop external reporting matrix/schedule and report it to the Board of Directors by March 2025
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