August 31, 2024
To: Clausell & Associates, P.C.
From: Tabirus Lockhart, Chief Financial Officer of Enrichment Services Programs, Inc.
Below is the Agency’s corrective action plan as it relates to the findings for the fiscal year ending July 31, 2023, Single Audit Act audit.
Comment #2023-001
INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE-OUT, AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED
GENERAL
(Repeat)
Views of Responsible Officials and Planned Corrective Actions:
We concur with this finding - Management is in the process of assessing the organizational structure, capacity to provide adequate financial reporting. With Board review and approval of the Agency’s financial funding sources, the Agency will hire additional fiscal clerk to further support financial requirements and segregation of duties to ensure adequate internal controls are fully implemented. The CFO will have the overall responsibility of properly reconciling and closing out the accounting system and grant activity each month in an efficient and timely manner to eliminate the risk of significant errors occurring. Budget-to-actual schedules will be an integral part of the grant accountant analyst’s basic responsibilities. The fiscal policies and procedures will be updated with the enhancements implemented within the fiscal department. Staff will be trained on revised policies and procedures and Uniform Guidance regulations. The new automated financial systems, will support financial reporting to meet GAAP requirements and to provide informative reports for Board and Management. All enhancements will be implemented by December 31, 2024.
Implementation Date: The plan correction date will be completed no later than December 31, 2024.
Responsible Person: Tabirus Lockhart, CFO, will be responsible for the corrective action.
Comment #2023-002
INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE-OUT, AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED
HEAD START AND EARLY HEAD START, LIHEAP, LIHWAP, CSBG, ASTHO
FAL # 93.600, 93.568, 93.499, 93.569, 93.185
(Questioned Costs - Undetermined)
Views of Responsible Officials and Planned Corrective Actions:
We concur with the finding. Management and staff are in the process of assessing and updating the policies and procedures over the accounting and reporting of federal and state grants and contracts. In connection with training staff on the new and updated accounting system, we are providing on-going training on the requirements of the Uniform Guidance and the specific requirements for each individual grant award as outlined in each applicable Compliance Supplement issued by Office of Management and Budget (OMB). We are currently reconciling all cash accounts, completing and amending, were necessary, all SF-425 reports and other external reports required by each funding source (state and federal). We anticipate completing this corrective action by December 31, 2024. See also the response to Comment #2023-01.
Implementation Date: The plan correction date will be completed no later than December 31, 2024.
Responsible Person: Tabirus Lockhart, CFO, will be responsible for the corrective action.