Corrective Action Plans

Finding 529670 (2023-001)

Material Weakness 2023

IL

The Management Agent will adequately review the statement of financial position and statement of activity accounts monthly to ensure there are no material misstatements.

View Audit 347577

Finding 529651 (2023-006)

Material Weakness 2023

Town of Lake Lure

NC

Questioned Costs Procurement, Suspension & Debarment HUD Housing Programs

Finding: 2023-006 Name of Contact Person: Stephen Ford, Finance Director Corrective Action: The Town seeks to make the procurement process fair, open, and guided by a legal procurement process and related procedures. In May 2023, a new procurement policy and procedures was developed and adopted by...

Finding: 2023-006 Name of Contact Person: Stephen Ford, Finance Director Corrective Action: The Town seeks to make the procurement process fair, open, and guided by a legal procurement process and related procedures. In May 2023, a new procurement policy and procedures was developed and adopted by Town Council. Prior to the new policy, the prior guiding document was flawed, unclear, and sometimes vague. The new policy addressed those deficiencies and the new policy will be used in subsequent years. Also, in regards to the some major purchases, the Town had to address some purchases that availability, accessibility to services (sole source), extension of services (labor and need), and Council oversight. However management and Town Council confirms the need for safeguarding and adhering to the procurement policy, and has implemented training among staff as well as requiring general contractor oversight. Proposed Completion Date: The Town will implement the above procedure immediately.

View Audit 347541 Questioned Costs: $1

Finding 529634 (2023-002)

Significant Deficiency 2023

Arab American Family Services

IL

AAFS has implemented a procedure assigning class of Restricted or unrestricted to donations when received, along with scanning all documentation (agreement, letter) received from the donor. Restricted funds/donations are reviewed on a monthly basis to determine the status of the funds.

View Audit 347539

Finding 529617 (2023-001)

Material Weakness 2023

Arab American Family Services

IL

All adjusting entries proposed by Ringold have been entered into the accounting systems for the fiscal year ended 12/21/2-23 As of September 2024, all cash accounts were being reconciled on a monthly basis. Moving forward other balance sheet accounts will be reviews and adjusted quarterly. AAFS anti...

All adjusting entries proposed by Ringold have been entered into the accounting systems for the fiscal year ended 12/21/2-23 As of September 2024, all cash accounts were being reconciled on a monthly basis. Moving forward other balance sheet accounts will be reviews and adjusted quarterly. AAFS anticipates having 100% of balance sheet accounts reconciled prior to the 12/31/2024 audit.

View Audit 347539

Finding 529600 (2023-004)

None 2023

Arab American Family Services

IL

Reporting

The AAFS staf is currently under employed by 50%. We are currently working towards having our finance team fully staffed within the next 60 days. We are currently meeting and reviewing all grants on a weekly basis to ensure vouchers and other required documents are submitted by the required due date...

The AAFS staf is currently under employed by 50%. We are currently working towards having our finance team fully staffed within the next 60 days. We are currently meeting and reviewing all grants on a weekly basis to ensure vouchers and other required documents are submitted by the required due date. Estimates Completion Date 12/31/2025

View Audit 347539

Finding 529583 (2023-003)

None 2023

Arab American Family Services

IL

Reporting

AAFS has designated a finance team member to be responsible for completing all general accounting duties, including closing the fiscal year and have all audit documentation available when requested. We have committed to having our 12/31/2024 audit cioplete by 6/30/2025

View Audit 347539

Finding 529561 (2023-003)

Material Weakness 2023

Johnson County, Iowa

IA

Subrecipient Monitoring § 200.303 § 200.331 § 200.333

Finding: 2023-003 Material Weakness in Internal Control over Compliance and Material Noncompliance U.S. Department of Labor Federal Financial Assistance Listing 17.258/17.259/17.278 WIOA Cluster Subrecipient Monitoring Finding Summary: Iowa Workforce Development did not formally communicate subrecip...

Finding: 2023-003 Material Weakness in Internal Control over Compliance and Material Noncompliance U.S. Department of Labor Federal Financial Assistance Listing 17.258/17.259/17.278 WIOA Cluster Subrecipient Monitoring Finding Summary: Iowa Workforce Development did not formally communicate subrecipient monitoring requirements to the County. Consequently, the County did not formally communicate the required information to the subrecipient. No subrecipient agreement was executed. In addition, no monitoring activities were documented. Responsible Individuals: Dana Aschenbrenner, Finance Director Corrective Action Plan: This finding is due in part to the fiscal agent agreement with Iowa Workforce Development which does not state that subrecipient monitoring has to be done. Recently, Iowa Workforce Development received a finding from the Department of Labor stating that the fiscal agent agreements improperly place the liability of disallowed costs off on the fiscal agent. This was incorrect, the liability was to stay with the local CEOs. In the wake of the finding, IWD is reissuing the contracts out to the regions to create compliant subrecipient entities within each, and then new fiscal agent agreements will be issued. Additionally, Johnson County will be ending it fiscal agent agreement and no longer continue to be the fiscal agent as of June 30, 2023. Anticipated Completion Date: Ongoing

View Audit 347531

Finding 529558 (2023-004)

Significant Deficiency 2023

Johnson County, Iowa

IA

Procurement, Suspension & Debarment § 200.303 § 200.317 § 200.326

Finding: 2023-004 Significant Deficiency in Internal Control over Compliance U.S. Department of Treasury Federal Financial Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension & Debarment Finding Summary: We selected 4 procurements during our review of ...

Finding: 2023-004 Significant Deficiency in Internal Control over Compliance U.S. Department of Treasury Federal Financial Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension & Debarment Finding Summary: We selected 4 procurements during our review of overall grant activity for the year ended June 30, 2023. We noted the following in our testing: 1 of the 4 procurements tested was not purchased prior to publishing bids within the local newspaper as required by the County’s Procurement Policy. Responsible Individuals: Dana Aschenbrenner, Finance Director Corrective Action Plan: The County will be more diligent in following their procurement policy. The Finance Department and Grants Team will provide training and guidance to ensure all the other County Departments/Offices are aware of the requirements. Additionally, the upcoming move to a new financial system will lend itself to policy updates and business process updates to ensure this will be less likely to happen. Anticipated Completion Date: Ongoing

View Audit 347531

Finding 529350 (2023-003)

None 2023

Newark Community Street Team, Inc.

NJ

Period of Performance Reporting Internal Control / Segregation of Duties § 200.512

Finding 2023-003 The reporting package and data collection form for the 2022 audit was not filed by the September 30, 2023 deadline. This is a repeat of Finding 2022-001 from the 2022 audit. Auditors’ Recommendation NCST should ensure that its records are completed and reconciled in a timely manner,...

Finding 2023-003 The reporting package and data collection form for the 2022 audit was not filed by the September 30, 2023 deadline. This is a repeat of Finding 2022-001 from the 2022 audit. Auditors’ Recommendation NCST should ensure that its records are completed and reconciled in a timely manner, so that the single audit can be performed and completed on time, and the reporting package and data collection form can be submitted before the deadline. Corrective Action Taken To prevent future delays, NCST has streamlined financial reporting and established a timeline for federal and grant audit compliance. A Finance Director with extensive nonprofit experience has been hired, and a third-party accounting firm has been contracted for ongoing oversight, improved audit preparedness, and enhanced reporting accuracy. All financial reports are now being prepared and submitted by the deadlines, with continuous support and oversight by the third-party accounting firm and our internal Finance Director. Audit reconciliation and financial compliance processes have been significantly strengthened to ensure future deadlines are met without delay. Responsible Individual Executive Director, Rey Chavis Anticipated Completion Date March 2025.

View Audit 347370

Finding 529340 (2023-103)

Material Weakness 2023

Pinal County, Arizona

AZ

HUD Housing Programs Reporting

Note: Finding noted by other auditors as finding 2023-002. Condition and Context – As of June 30, 2023, the restricted cash for the housing program does not exceed the ending housing assistance payment (HAP) restricted net position. Recommendation – The other auditors recommended management hire a...

Note: Finding noted by other auditors as finding 2023-002. Condition and Context – As of June 30, 2023, the restricted cash for the housing program does not exceed the ending housing assistance payment (HAP) restricted net position. Recommendation – The other auditors recommended management hire and retain competent individuals to calculate the restricted net position, HAP reserves and properly manage spending of funds. Contact Name: Rolanda Cephas, Housing Director Corrective Action Planned: The Housing Authority has recruited a Finance Manager who has demonstrated that she has strong financial skills and has sufficient knowledge and understanding of the factors that determine the Housing Authority's restricted net positions. Anticipated Completion Date: June 30, 2025

View Audit 347356

Finding 529339 (2023-102)

Material Weakness 2023

Pinal County, Arizona

AZ

HUD Housing Programs

Note: Finding noted by other auditors as finding 2023-001. Condition and Context: The U.S. Department of Housing and Urban Development uses the Voucher Management System (VMS) to collect Public Housing Agency’s (PHA) data that enables HUD to fund, obligate, and disburse funding. For the fiscal yea...

Note: Finding noted by other auditors as finding 2023-001. Condition and Context: The U.S. Department of Housing and Urban Development uses the Voucher Management System (VMS) to collect Public Housing Agency’s (PHA) data that enables HUD to fund, obligate, and disburse funding. For the fiscal year, the Housing Authority did not submit the correct restricted net position amounts. Recommendation: The other auditors recommended management hire and retain competent individuals to handle the monthly VMS submission. Contact Name: Rolanda Cephas, Housing Director Corrective Action Planned: The Housing Authority has recruited a Finance Manager who has demonstrated that she has strong financial skills and has sufficient knowledge and understanding of the factors that determine the Housing Authority's restricted net positions to accurately report in the Voucher Management System. Anticipated Completion Date: June 30, 2025

View Audit 347356

Finding 529336 (2023-101)

Significant Deficiency 2023

Pinal County, Arizona

AZ

Reporting

Condition and Context: Pinal County’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse by the required deadline of March 31, 2024. Recommendation: The auditors recommended that Pinal County devote the necessary resources t...

Condition and Context: Pinal County’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse by the required deadline of March 31, 2024. Recommendation: The auditors recommended that Pinal County devote the necessary resources to the accounting function to meet its reporting obligations. Doing so will improve the timeliness of Pinal County’s submittal to the Federal Audit Clearinghouse. Contact Name: Randee Stinson, Deputy Director Budget and Finance Corrective Action Planned: Historically, the Office of Budget and Finance was trying to complete all reconciliations and corrections centrally. County departments were not expected to, and did not have the training and resources needed to complete their accounting work correctly or reconciliation timely. In the last two years, the focus has been on educating, training, and providing tools for departments to accurately record and reconcile the general ledger for grants. This has had the effect of more accurate reporting, even though it has taken longer to complete financial statements. Some of the tools and resources that have been implemented include: 1. Utilizing outside accounting services to enhance the accounting and reporting team. 2. Adding additional accountants to the accounting and reporting team. 3. Creating a grants policy that requires monthly reconciliation for all grants. 4. Creating a position of grants manager to monitor and standardize grant compliance. 5. Monthly meetings with departments specifically discussing grant compliance and reconciliation. 6. Departmental education and training. This includes adding additional resources to educate newly hired staff members that have limited experience with governmental accounting. 7. Creation of a year-end closing check list. 8. Creation of a timeline to identify when closing tasks need to be completed in order to report timely. 9. Communication between the central accounting team and department leadership occurs to educate, inform and follow-up on closing tasks with the purpose of holding those responsible for the completion of tasks accountable. 10. Job duties and classifications for central accounting positions were reviewed and updated to ensure the proper level of expertise is assigned to the work. 11. Constant communication with management to ensure improvement and support is optimal. The Office of Budget and Finance has implemented the above and will need to continue to collaborate with county departments until we can achieve timely reconciliations and year end closeout. Anticipated Completion Date: June 30, 2026

View Audit 347356

Finding 529247 (2023-001)

Significant Deficiency 2023

The Health Care Authority of the City of Huntsville

AL

Reporting Internal Control / Segregation of Duties § 200.303 § 200.512

The Authority strives always to meet all regulatory deadlines. This particular deadline for the Single Audit was complicated by the unprecedented nature of the COVID-19 pandemic (which, for many organizations such as ours, triggered a Single Audit requirement for the first time, and overwhelmed the...

The Authority strives always to meet all regulatory deadlines. This particular deadline for the Single Audit was complicated by the unprecedented nature of the COVID-19 pandemic (which, for many organizations such as ours, triggered a Single Audit requirement for the first time, and overwhelmed the audit profession with a surge of new Single Audits to conduct that did not exist previously). In the Authority’s case, the situation was further complicated by the fact that we were changing external audit firms moving into the prior reporting period (Fiscal 2022). By the time the incumbent audit firm had issued its Single Audit report for Fiscal 2021, and the successor audit firm could therefore begin the Fiscal 2022 and Fiscal 2023 Single Audits, it was already beyond the reporting deadline of March 31, 2023 for Fiscal 2022. By the time the Single Audit was issued by the successor audit firm for Fiscal 2022, the March 31, 2024 reporting deadline for the Fiscal 2023 Single Audit (this reporting period) had also lapsed. We are hoping to be able to work successfully with the successor audit firm in order to file our Single Audit for Fiscal 2024 timely on or before March 31, 2025 and also have timely filings thereafter.

View Audit 347275

Finding 529227 (2023-003)

Material Weakness 2023

City of Jamestown, New York

NY

Subrecipient Monitoring Period of Performance Reporting

The City will update amounts and descriptions within the Department of Treasury’s reporting portal to ensure all amounts expended are properly reported and proper revenue loss amounts are recognized.

View Audit 347241

Finding 529207 (2023-005)

Significant Deficiency 2023

Ruby's Place

CA

Subrecipient Monitoring Reporting

RP has developed a Subrecipient Monitoring Checklist and will consistently complete it for each subrecipient organization. The checklist will document required oversight activities including financial and programmatic reviews and compliance verification. RP will require all subrecipient monitoring r...

RP has developed a Subrecipient Monitoring Checklist and will consistently complete it for each subrecipient organization. The checklist will document required oversight activities including financial and programmatic reviews and compliance verification. RP will require all subrecipient monitoring reports to be signed and reviewed by designated personnel to ensure accountability. Documentation will be saved in a centralized location to maintain complete and organized records of all subrecipient oversight activities. RP will develop a formalized communication process to ensure all subrecipients receive and acknowledge reporting timelines in accordance with federal grant requirements. Reminders and follow-ups will be scheduled to ensure timely submission and review of required reports.

View Audit 347196

Finding 529192 (2023-002)

Material Weakness 2023

City of Cupertino

CA

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.303

Beginning with the March 2024 reporting period, the City implemented a formal control framework designed to segregate the duties associated with the preparation, review, and submission of ARPA Project and Expenditure reports, in alignment with SEFA (Schedule of Expenditures of Federal Awards) report...

Beginning with the March 2024 reporting period, the City implemented a formal control framework designed to segregate the duties associated with the preparation, review, and submission of ARPA Project and Expenditure reports, in alignment with SEFA (Schedule of Expenditures of Federal Awards) reporting requirements. This enhanced control structure ensures that no single individual is responsible for all stages of the reporting process, thereby strengthening the City's internal control over federal awards. Furthermore, the City has adopted a strict reporting schedule to guarantee the timely submission of all ARPA-related reports. Responsible Person: Finance Manager Expected Implementation Date: April 2024

View Audit 347168

Finding 529165 (2023-001)

Material Weakness 2023

Regional Office of Education #21

IL

Reporting Internal Control / Segregation of Duties

To prevent the recurrence of financial statement inaccuracies that occurred in FY23, ROE#21 has implemented the following actions to be carried out during the preparation of FY24 financial statements: - Implementing new financial statement reconciliation procedures - Hiring local accounting consult...

To prevent the recurrence of financial statement inaccuracies that occurred in FY23, ROE#21 has implemented the following actions to be carried out during the preparation of FY24 financial statements: - Implementing new financial statement reconciliation procedures - Hiring local accounting consulting services with expertise in Illinois Regional Office of Education financial and operational guidelines - Expanding ROE#21 Professional Development opportunities through collaboration with professional governmental accounting trainers to provide continuing education to internal and regional bookkeepers.

View Audit 347149

Finding 529157 (2023-001)

Significant Deficiency 2023

The Center: Resources for Teaching and Learning

IL

Reporting Internal Control / Segregation of Duties

The Organization will submit the current year and subsequent year audit reporting packages and data collection forms as soon as the audits are complete and available. The Organization is reviewing its procedures to file and submit audits timely beginning in the fiscal year ending June 30, 2024. The ...

The Organization will submit the current year and subsequent year audit reporting packages and data collection forms as soon as the audits are complete and available. The Organization is reviewing its procedures to file and submit audits timely beginning in the fiscal year ending June 30, 2024. The Organization accepts the recommendation.

View Audit 347131

Finding 528946 (2023-003)

Material Weakness 2023

Northwest Native Development Fund

WA

Allowable Costs / Cost Principles

Recommendation: We recommend management implement procedures to ensure that unallowable costs are not charged to federal grants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will provide supplementary trainin...

Recommendation: We recommend management implement procedures to ensure that unallowable costs are not charged to federal grants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will provide supplementary training focused on the accurate allocation of costs to federal awards, as well as the identification and separation of unallowable costs from allowable costs. Name(s) of the contact person(s) responsible for corrective action: Jordan Ruiz, Executive Director Planned completion date for corrective action plan: March 31, 2025

View Audit 346931

Finding 528944 (2023-002)

Material Weakness 2023

Northwest Native Development Fund

WA

Allowable Costs / Cost Principles Material Weakness

Recommendation: We recommend that the Organization implements policies and procedures to properly calculate and allocate payroll, including review and approval of time and effort. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in respons...

Recommendation: We recommend that the Organization implements policies and procedures to properly calculate and allocate payroll, including review and approval of time and effort. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Although they were not documented, checks and balances were in place for approval and time allocation. We have implemented formal policies and procedures to be in compliance with proper time and effort federal regulations over wages. We have also implemented a formal review and approval process for payroll and allocations with a new payroll software. Name(s) of the contact person(s) responsible for corrective action: Jordan Ruiz, Executive Director Planned completion date for corrective action plan: December 01, 2024

View Audit 346931

Finding 528850 (2023-009)

Material Weakness 2023

Iliff School of Theology

CO

Student Financial Aid Matching / Level of Effort / Earmarking Material Weakness

Condition: The School does not have evidence that exit counseling was provided to students who withdrew or graduated as required by 34 CFR 682.604. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student ai...

Condition: The School does not have evidence that exit counseling was provided to students who withdrew or graduated as required by 34 CFR 682.604. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. The school has also ensured that this third-party processor is properly coordinated with the registrar’s office to meet federal requirements for exit counseling when status changes are processed. Contact person responsible for corrective action: Jason Warr, VP for Business, Controller Anticipated Completion Date: May 2024

View Audit 346899

Finding 528849 (2023-008)

Material Weakness 2023

Iliff School of Theology

CO

Material Weakness Matching / Level of Effort / Earmarking Special Tests & Provisions

Condition: The School does not have written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. Al...

Condition: The School does not have written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. All verification procedures are established, and documentation will be maintained to demonstrate compliance. Contact person responsible for corrective action: Jason Warr, VP for Business, Controller Anticipated Completion Date: May 2024

View Audit 346899

Finding 528848 (2023-007)

Material Weakness 2023

Iliff School of Theology

CO

Student Financial Aid Material Weakness Matching / Level of Effort / Earmarking

Condition: The School does not have a documented Direct Loan quality assurance program. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. The school will coordinate with this third-party...

Condition: The School does not have a documented Direct Loan quality assurance program. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. The school will coordinate with this third-party processor to ensure that there is a documented quality assurance program that is regularly exercised for compliance purposes. All documentation will be maintained. Contact person responsible for corrective action: Jason Warr, VP for Business, Controller Anticipated Completion Date: May 2024

View Audit 346899

Finding 528847 (2023-006)

Material Weakness 2023

Iliff School of Theology

CO

Questioned Costs Student Financial Aid Material Weakness

Condition: Our audit procedures identified an instance where the School could not locate evidence that the required R2T4 calculation under federal regulation was completed and another instance whereas the calculation was inaccurate. Planned Corrective Action: The Iliff School of Theology has contr...

Condition: Our audit procedures identified an instance where the School could not locate evidence that the required R2T4 calculation under federal regulation was completed and another instance whereas the calculation was inaccurate. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. This third-party processor is adequately skilled to complete Return of Title IV calculations and includes an established review process for quality control. All documentation will be maintained. Contact person responsible for corrective action: Jason Warr, VP for Business, Controller Anticipated Completion Date: May 2024

View Audit 346899 Questioned Costs: $1

Finding 528846 (2023-005)

Material Weakness 2023

Iliff School of Theology

CO

Student Financial Aid Material Weakness Matching / Level of Effort / Earmarking

Condition: The School does not reconcile institutional records with Direct Loan funds received from the Secretary of the U.S. Department of Education and the Direct Loan disbursement records submitted to and accepted by the Secretary of the U.S. Department of Education. Planned Corrective Action: T...

Condition: The School does not reconcile institutional records with Direct Loan funds received from the Secretary of the U.S. Department of Education and the Direct Loan disbursement records submitted to and accepted by the Secretary of the U.S. Department of Education. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs who will ensure that direct loan reconciliations are conducted on a monthly basis in coordination with the business office. Contact person responsible for corrective action: Jason Warr, VP for Business, Controller Anticipated Completion Date: May 2024

View Audit 346899

Corrective Action Plans

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