Corrective Action Plans

New procedures have been established to ensure the separation of duties and responsibilities between the individuals who prepare grant reporting and the individuals who review the reports starting FY2024. The accounting manager gathers the data and prepares the grant reporting and then the Finance ...

New procedures have been established to ensure the separation of duties and responsibilities between the individuals who prepare grant reporting and the individuals who review the reports starting FY2024. The accounting manager gathers the data and prepares the grant reporting and then the Finance Director reviews and approves the reporting before it is submitted.

View Audit 340881

Finding 521008 (2023-003)

Material Weakness 2023

City of El Monte

CA

Procurement, Suspension & Debarment

As it pertains to purchases supported by Federal funding, each department is required to obtain supporting documentation that the vendor has not been suspended or disbarred prior to the purchase of the product or service.

View Audit 340881

Finding 521007 (2023-002)

Material Weakness 2023

City of El Monte

CA

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles

This has been corrected. The Contracts and Procurement Manager reviews all RFPs and RFQs and is present during the evaluation review.

View Audit 340881

Finding 521006 (2023-001)

Material Weakness 2023

City of El Monte

CA

Reporting

The City hired an additional accountant on July 1, 2023, to oversee all of the Economic Development grants. This accountant is responsible for the review of all reporting and submission.

View Audit 340881

Finding 520968 (2023-002)

Significant Deficiency 2023

Innovative Health Solutions

CA

IHS will continue to engage an outside public accounting firm to conduct an annual audit of its financial statements. Such audit will begin no later than October 1 of each year to ensure compliance with the Single Audit filing deadline.

View Audit 340857

Finding 520967 (2023-001)

Significant Deficiency 2023

Innovative Health Solutions

CA

IHS will develop compliance policies and procedures by March 2025.

View Audit 340857

Finding 520959 (2023-002)

Material Weakness 2023

Hui No Ke Ola Pono, Inc.

HI

Reporting

During the fiscal year, funding sources or grantors, were not clearly defined by the grantors documents on the type of funding received by HNKOP. Due to the inability to define the funding source, these expenses were not included on the SEFA report. Since January 2023, all awards are verified with...

During the fiscal year, funding sources or grantors, were not clearly defined by the grantors documents on the type of funding received by HNKOP. Due to the inability to define the funding source, these expenses were not included on the SEFA report. Since January 2023, all awards are verified with the grantor if the funds are from a federal award, and has been noted on the SEFA report as such.

View Audit 340855

Finding 520958 (2023-001)

Material Weakness 2023

Hui No Ke Ola Pono, Inc.

HI

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Internal control over payroll and disbursements In January 2023 changes to any pay rates were submitted on a Personnel Action Form (PAF) by the Operations Manager. The PAF included the old pay rate and the new pay rate and was submitted to the Executive Director for review and approval. After app...

Internal control over payroll and disbursements In January 2023 changes to any pay rates were submitted on a Personnel Action Form (PAF) by the Operations Manager. The PAF included the old pay rate and the new pay rate and was submitted to the Executive Director for review and approval. After approval, the form was filed in the employees paper file, as well as uploaded to their electronic record on the ProService platform. In May 2024, we hired a Human Resources Specialist who is responsible for updating and maintaining all personnel files and processing of payroll records. In October 2023, we hired an Accounting Specialist (AS) who is responsible for the processing of all vendor disbursements. Prior to ordering items or services, a Purchase Requisiton (PR) is submitted by the program manager to the Executive Director or Programs Director for review and approval. Upon approval the PR is submitted to the Controller for expense and grant coding. PR is then submitted to the AS to assign a PR number and enter the expenses on the PR tracking log. When the PR has been assigned a PR number it is sent to the Operations Manager for purchasing. When the invoice is received the PR is matched to the invoice indicating proper approvals. If the purchase is over $5,000, a Procurement form is completed to solicit 3 bids and reviewed and approved by the Executive Director. If the purchase is over $20,000, the Procurement form is submitted to the Board of Directors for approval. All Procurement forms are attached to invoices for payment processing. Internal control over account balances During the fiscal year, it was noted that there were credit card entries that were duplicated, and have been corrected as of the date of this report. Due to miscommunication with the previous fiscal staff, payments made by credit card were entered as an invoice and as an adjusting journal entry.

View Audit 340855

Finding 520901 (2023-002)

None 2023

Southwest Intermediary Finance Team

OK

Management will make arrangements to have their records inspected quicker after year-end

View Audit 340790

Finding 520863 (2023-003)

None 2023

Northern Michigan Health Consortium

MI

Allowable Costs / Cost Principles Reporting § 200.512

It is the responsibility of the Finance Supervisor to ensure all contracts entered into includes language indicating if the funding is federal or state. If it is federal funding, the contract must include the federal assistance listing number, which will be reported on the year-end schedule of feder...

It is the responsibility of the Finance Supervisor to ensure all contracts entered into includes language indicating if the funding is federal or state. If it is federal funding, the contract must include the federal assistance listing number, which will be reported on the year-end schedule of federal awards. A single audit will be performed if the federal expenditures reach the maximum allowable per auditing standards. If a single audit is required, it will be completed and submitted to the appropriate grantors within nine months of the end of the fiscal year.

View Audit 340690

Finding 520848 (2023-006)

Material Weakness 2023

Municipality of Ceiba

PR

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

We concur with the finding. During the fiscal year 2024-2025, all participant files will be revised to include all missing documents referred to in the finding.

View Audit 340664

Finding 520847 (2023-005)

Material Weakness 2023

Municipality of Ceiba

PR

HUD Housing Programs Reporting

We concur with the finding. During the fiscal year 2024-2025, both reports for fiscal years 2021 and 2022 will be filed. Therefore, the conditions of the findings have been corrected.

View Audit 340664

Finding 520813 (2023-005)

Material Weakness 2023

County of Trinity

CA

Questioned Costs Matching / Level of Effort / Earmarking Subrecipient Monitoring

Federal program title – Home Partnership Investment Program – HOME loan – CFDA 14.239 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance...

Federal program title – Home Partnership Investment Program – HOME loan – CFDA 14.239 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the HOME grant loan provision. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Grants department had two employees in FY 22/23. The Grant coordinator and assistant both terminated county employment in fiscal year 22/23 and left virtually no records. Information and materials, they did leave behind were stuffed in boxes and tracking in the electronic workbook was not fully completed. Admin staff trained the Grant employees but was unaware they were not following the process and procedures, and only saving information to their personal computer. Current admin staff requested the documents from prior staff members and they were received, though we are unsure if all were sent. Staff is doing their due diligence and working diligently to get back on track in monitoring activities, and train the newly hired staff. There is insufficient budget to hire the staff needed to fully monitor the Home Program loan efforts. Name(s) of the contact person(s) responsible for corrective action: Under direction of the County Administrative Officer, the Senior Financial Analyst Suzie Hawkins. Planned completion date for correcting action plan: Undetermined at this time as the staff continues their current minimal Home Program loan efforts while still maintaining all other duties, and being short staffed. Existing Home Program workload is being closed out as fast as possible.

View Audit 340608 Questioned Costs: $1

Finding 520808 (2023-004)

Material Weakness 2023

County of Trinity

CA

Questioned Costs Matching / Level of Effort / Earmarking Subrecipient Monitoring

Federal program title – Community Development Block Grant – CDBG – CFDA 14.228 Recommendation: CLA recommends the County develop procedures, such as including a compliance check list in the receivables listing sent to auditor’s office, to ensure that outstanding loan continuing compliance is perfor...

Federal program title – Community Development Block Grant – CDBG – CFDA 14.228 Recommendation: CLA recommends the County develop procedures, such as including a compliance check list in the receivables listing sent to auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Grants department had two employees in FY 22/23. The Grant coordinator and assistant both terminated county employment in fiscal year 22/23 and left virtually no records. Information and materials, they did leave behind were stuffed in boxes and tracking in the electronic workbook was not fully completed. Admin staff trained the Grant employees but was unaware they were not following the process and procedures, and only saving information to their personal computer. Current admin staff requested the documents from prior staff members and they were received, though we are unsure if all were sent. Staff is doing their due diligence and working diligently to get back on track in monitoring activities, and train the newly hired staff. There is insufficient budget to hire the staff needed to fully monitor the CDBG efforts. Name(s) of the contact person(s) responsible for corrective action: Under direction of the County Administrative Officer, the Senior Financial Analyst Suzie Hawkins Planned completion date for correcting action plan: Undetermined at this time as the staff continues their current minimal CDBG efforts while still maintaining all other duties, and being short staffed. Existing CDBG workload is being closed out as fast as possible.

View Audit 340608 Questioned Costs: $1

Finding 520803 (2023-003)

Material Weakness 2023

County of Trinity

CA

Subrecipient Monitoring Reporting Program Income

Federal program title – Community Development Block Grant – CDBG – CFDA 14.228 Recommendation: CLA recommends the County develop procedures, such as reporting checklist to ensure that reporting requirements are tracked and met. Additionally, CLA recommends that the County perform cross training wi...

Federal program title – Community Development Block Grant – CDBG – CFDA 14.228 Recommendation: CLA recommends the County develop procedures, such as reporting checklist to ensure that reporting requirements are tracked and met. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Action taken in response to finding: The Grants department had two employees in FY 22/23. The Grant coordinator and assistant both terminated county employment in fiscal year 22/23 and left virtually no records. Information and materials, they did leave behind were stuffed in boxes and tracking in the electronic workbook was not fully completed. Admin staff trained the Grant employees but was unaware they were not following the process and procedures, and only saving information to their personal computer. Current admin staff requested the documents from prior staff members and they were received, though we are unsure if all were sent. Staff is doing their due diligence and working diligently to get back on track in monitoring activities, and train the newly hired staff. There is insufficient budget to hire the staff needed to fully monitor the CDBG efforts. Name(s) of the contact person(s) responsible for corrective action: Under direction of the County Administrative Officer, the Senior Financial Analyst Suzie Hawkins Planned completion date for correcting action plan: Undetermined at this time as the staff continues their current minimal CDBG efforts while still maintaining all other duties, and being short staffed. Existing CDBG workload is being closed out as fast as possible.

View Audit 340608

Finding 520798 (2023-002)

Material Weakness 2023

County of Trinity

CA

Subrecipient Monitoring

Federal program title – Community Development Block Grant – CDBG – CFDA 14.228 Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cro...

Federal program title – Community Development Block Grant – CDBG – CFDA 14.228 Recommendation: CLA recommends the County develop procedures, such as including a checklist for each subrecipient to ensure all monitoring activities are performed. In addition, CLA recommends that the County conduct cross training to ensure that knowledge is shared among team members. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Grants department had two employees in FY 22/23. The Grant coordinator and assistant both terminated county employment in fiscal year 22/23 and left virtually no records. Information and materials, they did leave behind were stuffed in boxes and tracking in the electronic workbook was not being completed. Admin staff trained the Grant employees but was unaware they were not following the process and procedures and only saving information to their personal computer. Current admin staff requested the documents from prior staff members and they were received, though we are unsure if all were sent. Staff is doing their due diligence and working to get back on track in monitoring activities, and train the newly hired staff. There is insufficient budget to hire the staff needed to fully monitor the CDBG efforts. Name(s) of the contact person(s) responsible for corrective action: Under direction of the County Administrative Officer, the Senior Financial Analyst Suzie Hawkins Planned completion date for correcting action plan: Undetermined at this time as the staff continues their current minimal CDBG efforts while still maintaining all other duties, and being short staffed. Existing CDBG workload is being closed out as fast as possible.

View Audit 340608

Finding 520791 (2023-001)

Material Weakness 2023

City of Sumner

WA

Procurement, Suspension & Debarment Subrecipient Monitoring

Finding caption: The City did not have adequate internal controls for ensuring compliance with federal requirements for suspension and debarment. Name, address, and telephone of City contact person: Kassandra Raymond, Chief Financial Officer 1104 Maple Street Sumner, WA 98390 253-299-5541 kassandrar...

Finding caption: The City did not have adequate internal controls for ensuring compliance with federal requirements for suspension and debarment. Name, address, and telephone of City contact person: Kassandra Raymond, Chief Financial Officer 1104 Maple Street Sumner, WA 98390 253-299-5541 kassandrar@sumnerwa.gov Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). The City of Sumner’s standard contract templates already include self-certification language for suspension and debarment. The City will be adding similar language to the standard purchase order template in the Tyler ERP software. Additionally, the City will continue providing guidance and requiring training for all staff with regard to federal compliance requirements. Anticipated date to complete the corrective action: 01/29/2025 (scheduled consult day with Tyler ERP support)

View Audit 340589

Finding 520779 (2023-003)

Significant Deficiency 2023

Progress House Inc.

CA

Reporting Allowable Costs / Cost Principles

Views of responsible officials and corrective action: We have adopted a SEFA worksheet to track federal award expenditures for each individual federal program to include the CFDA or other identifying number when the CFDA information is not available. Included in the SEFA worksheet, tracking of feder...

Views of responsible officials and corrective action: We have adopted a SEFA worksheet to track federal award expenditures for each individual federal program to include the CFDA or other identifying number when the CFDA information is not available. Included in the SEFA worksheet, tracking of federal awards received as a subrecipient, including the name of the pass-through entity and the identifying number assigned by the pass-through entity. All federal expenditures will be categorized per our contract statement on allowable cost expenses. Responsible Individual: Brangwyn Foley, Office Manager Implementation Date: July 2023

View Audit 340574

Finding 520778 (2023-002)

Material Weakness 2023

Progress House Inc.

CA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Views of responsible officials and corrective action: Payroll Tax administration integration through ADP automats tax deposits and filings – quarterly/annually for federal, state and local jurisdictions. Conducting continual balancing to ensure that tax filing data matches payroll data. ADP identifi...

Views of responsible officials and corrective action: Payroll Tax administration integration through ADP automats tax deposits and filings – quarterly/annually for federal, state and local jurisdictions. Conducting continual balancing to ensure that tax filing data matches payroll data. ADP identifies and corrects reconciliation mistakes throughout the year to help save time and ensure an easier year-end tax audit. expense and accounts payable payroll policy Progress House Inc. contracts with an external company for payroll services. payroll preparation and approval Protocol Payroll Records-Employees are paid on a bi-monthly basis. The payroll company is responsible for preparing payroll checks and maintaining the records in a payroll journal. deductions Progress House Inc. is responsible for providing the external payroll company accurate employee information, and providing changes or corrections as needed. The external payroll company is responsible for ensuring deductions including the appropriate social security taxes (FICA), federal income taxes, state income taxes and state disability insurance. Responsible Individual: Cindy Carlson, Executive Director Implementation Date: September 2023

View Audit 340574 Questioned Costs: $1

Corrective Action Plans

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