Corrective Action Plans

Finding 1216505 (2025-002)

Material Weakness 2025

OR

Allowable Costs / Cost Principles Significant Deficiency

Wild Salmon Center management will require all program staff with federal grant responsibilities or with credit card expense and timesheet approval responsibilities to attend an internal training session which will include training regarding what documentation and approvals are required under govern...

Wild Salmon Center management will require all program staff with federal grant responsibilities or with credit card expense and timesheet approval responsibilities to attend an internal training session which will include training regarding what documentation and approvals are required under government grant guidelines. The Financial Controller will conduct a review of credit card expenses before charging expenses to a government grant and will review that all timesheets have been approved before submission.

View Audit 402998

Finding 1216500 (2025-003)

Material Weakness 2025

City of Seal Beach

CA

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.318 § 200.403 § 200.405

The City has taken steps to strengthen internal controls over the CDBG program. The City will additionally implement formalized procedures requiring, centralized project files containing procurement documentation, cost support, and project eligibility records, document procurement procedures consist...

The City has taken steps to strengthen internal controls over the CDBG program. The City will additionally implement formalized procedures requiring, centralized project files containing procurement documentation, cost support, and project eligibility records, document procurement procedures consistent with Uniform Guidance requirements, including cost/price analysis and justification for contractor selection, collection and review of Davis-Bacon documentation, including wage determinations and certified payrolls, when applicable, verification that required permits are obtained prior to construction and retention of inspection and completion documentation, and secondary review by City staff to ensure all required documentation is complete prior to project closeout. Additionally, the City will provide training to staff involved in CDBG program administration. Responsible Persons: Community Development Director Date of Implementation: Initiate FY 2025-26 with ongoing monitoring into FY 2026-27

View Audit 402990

Finding 1216497 (2025-003)

Material Weakness 2025

Aurora East School District 131

IL

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility

2025-003: Allocating Funds to Eligible School Attendance Areas and Schools Condition: The district’s approved Title I application established school-level building allocations under Title I Targeting Step 5 using a per-pupil allocation methodology based on low-income counts. The district should docu...

2025-003: Allocating Funds to Eligible School Attendance Areas and Schools Condition: The district’s approved Title I application established school-level building allocations under Title I Targeting Step 5 using a per-pupil allocation methodology based on low-income counts. The district should document school-level expenditures to verify that the per-pupil allocation is followed. The district does not have effective controls to monitor school-level expenditures for compliance with approved Title I building allocations. Six of the 20 schools overspent their allocation by approximately $554,000. The other schools were under their allocations as a result. Corrective Action Planned: The district is working with ISBE to ensure that our site-based resource allocations align with the district’s budget. Name of the Contact Person Responsible for Corrective Action: Mr. Daniel Ulrich, Executive Direct of Finance/ District Accountants/Auditor, Judy Freeman, District Accounts Grant Auditor, Chanbopha Loera Anticipated Completion Date: July 1st 2026.

View Audit 402987

Finding 1216495 (2025-002)

Material Weakness 2025

La Clinica Tepeyac

CO

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303

Consolidated Health Centers Grant – Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditor’s recommended the Organization update their termination procedures to verify that final payrolls are being calculated correctly and update their grant allocation process to ensure accurate wage rat...

Consolidated Health Centers Grant – Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditor’s recommended the Organization update their termination procedures to verify that final payrolls are being calculated correctly and update their grant allocation process to ensure accurate wage rates are used to calculate the allocations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has updated the payroll termination process to include a documented review before payroll is finalized. The finance team will review final payroll calculations for terminated employees after HR provides the termination details and payout calculation. Payroll changes and review steps are documented as part of the bi-weekly payroll update emails.

View Audit 402985

Finding 1216487 (2025-003)

Material Weakness 2025

Habilitative Systems, Inc.

IL

Allowable Costs / Cost Principles Reporting

Finding 2025-003 Material Weakness in Internal Control Over Allowable Costs/Cost Principles Criteria HSI is responsible for keeping adequate supporting documentation of salaries and wage expense charged to federally funded grants. Required documentation includes personnel activity reports, electroni...

Finding 2025-003 Material Weakness in Internal Control Over Allowable Costs/Cost Principles Criteria HSI is responsible for keeping adequate supporting documentation of salaries and wage expense charged to federally funded grants. Required documentation includes personnel activity reports, electronic or manual time sheets, pay records integrated with grant codes, certification statements, budget-to-actual reconciliations, and activity descriptions and reports. Views of Responsible Officials and Planned Corrective Actions Management agrees with the auditor’s finding and will implement the auditor’s recommendation. Person responsible: Jason House Anticipated date of implementation: June 2026

View Audit 402980

Finding 1216442 (2025-009)

Material Weakness 2025

Ajo Unified School District No. 15

AZ

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

2025-009: ALLOWABLE COSTS/COST PRINCIPLES Program: Education Stabilization Fund Federal Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESIII-111427-01A Questioned Costs: $909.10 Type of Finding: ...

2025-009: ALLOWABLE COSTS/COST PRINCIPLES Program: Education Stabilization Fund Federal Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 21FESIII-111427-01A Questioned Costs: $909.10 Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: B. Allowable Costs/Cost Principles Condition: During testing of payroll disbursements charged to the Education Stabilization Fund (ESSER III) program, we noted that for two of 9 transactions tested, the District was unable to provide documentation demonstrating that extra duty stipends were properly approved and allowable under the grant. The total amount associated with these transactions was $909.10. Action planned in response to finding: The District will implement procedures to ensure all payroll expenditures charged to federal programs are properly authorized, supported, and allowable prior to processing, including requiring documented approval for all stipends and maintaining adequate supporting documentation. The District will also strengthen oversight over grant management by assigning responsibility for reviewing grant expenditures and monitoring grant budgets on an ongoing basis to ensure costs are appropriate, within approved budgets, and charged to the correct program. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Roman Soltero, Superintendent

View Audit 402951

Finding 1216437 (2025-001)

Material Weakness 2025

Highlands County, Florida

FL

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303

Disaster Grants - Public Assistance (Presidentially Declared Disasters) – Assistance Listing No. 97.036 Recommendation: We recommend the County implement a formal review and reconciliation process to ensure that employees' hours reported on Activity Logs are verified against the reimbursement reques...

Disaster Grants - Public Assistance (Presidentially Declared Disasters) – Assistance Listing No. 97.036 Recommendation: We recommend the County implement a formal review and reconciliation process to ensure that employees' hours reported on Activity Logs are verified against the reimbursement request prior to submitting it to the grantor. This review should be performed by personnel knowledgeable of the grant requirements and documented to evidence the review was completed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will establish a process to maintain effective internal controls to ensure that the documentation is complete and accurately reflected in the reimbursement requests. An internal review and reconciliation process for employee activity logs will be performed prior to submitting to the grantor. Name of the contact person responsible for corrective action: Tanya Cannady, Business Services Director Planned completion date for corrective action plan: June 2026

View Audit 402949

Finding 1216370 (2025-004)

Material Weakness 2025

Village of Bellevue

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.303 § 200.305 § 200.318

VILLAGE OF BELLEVUE 201 N. Main St. Bellevue, MI 49021 269-763-9571 • Fax 269-763-9998 manager@bellevuemi.net • www.bellevuemi.net treasurer@bellevuemi.net 69 CORRECTIVE ACTION PLAN Certain matters were brought to our attention as a result of the audit process. These are described more fully in the ...

VILLAGE OF BELLEVUE 201 N. Main St. Bellevue, MI 49021 269-763-9571 • Fax 269-763-9998 manager@bellevuemi.net • www.bellevuemi.net treasurer@bellevuemi.net 69 CORRECTIVE ACTION PLAN Certain matters were brought to our attention as a result of the audit process. These are described more fully in the Schedule of Findings and Questioned Costs. We evaluated the matters as noted below and have described our planned actions as a result. 2025-001 MATERIAL JOURNAL ENTRIES PROPOSED BY AUDITORS Views of Responsible Officials: Management agrees with the finding and will take appropriate steps to remedy noted finding. Corrective action plan response: The Village will take steps to ensure that material journal entries are not necessary at the time future audit analysis is performed. Responsible Party: Nicole Roberts (Village Manager) and Michelle Pennington (Assistant Village Manager). Date of Planned Corrective Action: December 31, 2026 2025-002 SEGREGATION OF DUTIES OVER KEY FINANCIAL PROCESSES Views of Responsible Officials: Management agrees with the finding and has taken appropriate action to remedy the bank reconciliation portion of the finding during fiscal year 2025. Corrective action plan response: The Village will take steps to actively seek ways to strengthen its internal control structure. This may include requiring as much independent review, reconciliation, and approval of journal entries and bank reconciliations by qualified members of management and documenting such review as part of the Village’s control procedures. Responsible Party: Nicole Roberts (Village Manager) and Michelle Pennington (Assistant Village Manager). Date of Planned Corrective Action: December 31, 2026 2025-003 BANK RECONCILIATIONS Views of Responsible Officials: Management agrees with the finding and will take appropriate steps to remedy noted finding. Corrective action plan response: The Village will take steps to ensure that bank reconciliations are documented as reviewed and reconciliating items are properly documented. Responsible Party: Nicole Roberts (Village Manager) and Michelle Pennington (Assistant Village Manager). Date of Planned Corrective Action: December 31, 2026

View Audit 402917

Finding 1216365 (2025-001)

Material Weakness 2025

American Samoa Medical Center Authority Lbj Medical Center

AS

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.514

Corrective actions were delayed due to the anticipated implementation of a new system that ws expected to address access and segregation of duties concerns. Since the new system will not be imiplemented immediately, management is proceeding with corrective action under the current system. Management...

Corrective actions were delayed due to the anticipated implementation of a new system that ws expected to address access and segregation of duties concerns. Since the new system will not be imiplemented immediately, management is proceeding with corrective action under the current system. Management is working to define and separate HR and Payroll rolls and access responsibilities so that employee information, pay rates, and payroll related functions are restricted to authorized personnel based on job duties. In the interim, periodic reviews of employee information, user access, and payroll related transactions will be performed. Any unauthorized changes will be documented and retained.

View Audit 402905

Finding 1216310 (2025-001)

Material Weakness 2025

The Carter Center, Inc.

GA

Subrecipient Monitoring Allowable Costs / Cost Principles

The Center will perform a thorough review of its subaward management process in response to this finding to ensure that this remains an isolated instance caused by the extenuating circumstances of the federal funding shutdown.

View Audit 402804

Finding 1216258 (2025-003)

Material Weakness 2025

Pembroke Housing for the Elderly, Inc.

NH

Allowable Costs / Cost Principles Reporting Significant Deficiency

Plan: The Director of Affordable Housing will ensure that her staff submit allocation sheets each pay period. The Director will review the allocation sheets for accuracy, and the Director will approve the allocation sheets before submitting to Payroll for processing. The Chief Operating Officer will...

Plan: The Director of Affordable Housing will ensure that her staff submit allocation sheets each pay period. The Director will review the allocation sheets for accuracy, and the Director will approve the allocation sheets before submitting to Payroll for processing. The Chief Operating Officer will ensure that the Director of Affordable Housing submits an allocation sheet each pay period. The COO will check the allocation sheet for accuracy before approving the allocation sheet and submitting to Payroll for processing. The allocation sheet submitted will include detailed information on the job duties performed during that pay period by the staff member submitting the allocation sheet. Additionally, the Director of Affordable Housing will document job duties for each position in the department. Anticipated Completion Date: 7/1/2026 Contact: Jill Lesmerises, CFO

View Audit 402757

Finding 1216252 (2025-003)

Material Weakness 2025

Newbury Elderly Housing, Inc.

NH

Allowable Costs / Cost Principles Reporting Significant Deficiency

Finding 2025-003 Plan: The Director of Affordable Housing will ensure that her staff submit allocation sheets each pay period. The Director will review the allocation sheets for accuracy, and the Director will approve the allocation sheets before submitting to Payroll for processing. The Chief Opera...

Finding 2025-003 Plan: The Director of Affordable Housing will ensure that her staff submit allocation sheets each pay period. The Director will review the allocation sheets for accuracy, and the Director will approve the allocation sheets before submitting to Payroll for processing. The Chief Operating Officer will ensure that the Director of Affordable Housing submits an allocation sheet each pay period. The COO will check the allocation sheet for accuracy before approving the allocation sheet and submitting to Payroll for processing. The allocation sheet submitted will include detailed information on the job duties performed during that pay period by the staff member submitting the allocation sheet. Additionally, the Director of Affordable Housing will document job duties for each position in the department. Anticipated Completion Date: 7/1/2026 Contact: Jill Lesmerises, CFO

View Audit 402751

Finding 1216209 (2025-001)

Material Weakness 2025

Pittsfield Charter Township

MI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

2025-001 - Lack of Independent Review and Approval of Reporting Auditor Description of Condition and Effect: During our audit procedures over the Township's reporting process, we noted that the annual financial report selected for testing did not include documentation that it was subject to an indep...

2025-001 - Lack of Independent Review and Approval of Reporting Auditor Description of Condition and Effect: During our audit procedures over the Township's reporting process, we noted that the annual financial report selected for testing did not include documentation that it was subject to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. As a result of this condition, the Township was exposed to an increased risk that the report filed could contain errors and not be detected and corrected on a timely basis. Auditor Recommendation: We recommend that the Township establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. Corrective Action: We acknowledge the finding of significant deficiency in internal controls over compliance. While the matter is not considered to be material to the overall compliance requirements, we recognize the importance of maintaining robust internal controls to ensure full adherence to applicable regulations and policies. The Township has completed training sessions with relevant personnel on the updated compliance process. The Township has also designated an employee as grants manager to provide additional oversight over grant awards to ensure sustained compliance and timely identification of potential issues. Responsible Person: Corey Schmidt, Finance Director Anticipated Completion Date: December 31, 2026

View Audit 402689

Finding 1216178 (2025-001)

Material Weakness 2025

Los Angeles Jewish Home for the Aging

CA

Period of Performance Allowable Costs / Cost Principles Cash Management § 200.403 § 200.430

As required by the OMB Uniform Guidance, we have provided our response and corrective action plan addressing the finding in the Schedule of Findings and Questioned Costs for the year ended August 31, 2025. Finding 2025-001: Allowable Costs – Significant Deficiency in Internal Control Over Compliance...

As required by the OMB Uniform Guidance, we have provided our response and corrective action plan addressing the finding in the Schedule of Findings and Questioned Costs for the year ended August 31, 2025. Finding 2025-001: Allowable Costs – Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Management’s Views – Management agrees with the finding. LAJH acknowledges that payroll reimbursement calculations submitted under the federal program were prepared using subsequent employee pay rates rather than the contemporaneous pay rates applicable during the grant performance period and that certain duplicative expenditures were included in error. Management recognizes that these errors resulted in overstated costs totaling $79,825. Corrective Action Plan – LAJH will implement enhanced internal control procedures over the preparation and review of payroll costs charged to federal awards. Specifically, management will require all payroll reimbursement calculations to be supported by contemporaneous payroll registers and employee pay rate documentation applicable to the period during which services were performed. Person Responsible for Corrective Action: Robin Ray, Corporate Controller Anticipated Completion Date: May 31, 2026

View Audit 402659

Finding 1216119 (2025-001)

Material Weakness 2025

Michigan Works! Southeast Consortium

MI

Allowable Costs / Cost Principles § 200.405

April 30, 2026 Finding Number: 2025-001: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs Finding Condition: Allowable costs charged to the grant were coded to an incorrect functional expense within the grant. Planned Corrective Action: Altho...

April 30, 2026 Finding Number: 2025-001: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs Finding Condition: Allowable costs charged to the grant were coded to an incorrect functional expense within the grant. Planned Corrective Action: Although the allowable cost sampled was charged to the correct federal cost category, it was inadvertently charged to the incorrect internal functional account code. We have instituted more rigorous reviews of all elements of account coding during the invoice review process prior to posting invoices to the Accounts Payable ledger. We also note that the cost was reported to the correct cost category on quarterly reports. Responsible Contact Person: Shamar Herron (Executive Director) Sherron@mwse.org Anticipated Completion Date: Effective Immediately Respectfully, Shamar Herron

View Audit 402596

Finding 1216066 (2025-002)

Material Weakness 2025

Baptist Health Deaconess Madisonville, Inc.

KY

Allowable Costs / Cost Principles Period of Performance Significant Deficiency § 200.303

Finding 2025-002 Federal Agency Name: Department of the Health and Human Services Program Name: Rural Healthcare Services Program Federal Financial Assistance Listing #93.912 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Period of Performance Finding...

Finding 2025-002 Federal Agency Name: Department of the Health and Human Services Program Name: Rural Healthcare Services Program Federal Financial Assistance Listing #93.912 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Period of Performance Finding Summary: BHD, LLC did not retain documentation of the review and approval of all direct expenditures allocated to the program. Responsible Individuals: Valarie Howard, CFO Corrective Action Plan: We have begun generating a report each pay period identifying any timecards that remain unapproved at the processing deadline. Payroll will proactively follow up with the responsible managers to obtain approval for any outstanding timecards identified in the report. Payroll will disburse a document to the responsible managers who must document why the approval was not made by the payroll deadline and that they approve the time that was presented on the timecard and paid out. Anticipated Completion Date: Action plan has been implemented immediately after finding was communicated to management (May 2026).

View Audit 402591

Finding 1216064 (2025-001)

Material Weakness 2025

Baptist Health Deaconess Madisonville, Inc.

KY

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.303

Finding 2025-001 Federal Agency Name: Department of the Health and Human Services Program Name: Rural Healthcare Services Program Federal Financial Assistance Listing #93.912 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Finding Summary: For a portion of...

Finding 2025-001 Federal Agency Name: Department of the Health and Human Services Program Name: Rural Healthcare Services Program Federal Financial Assistance Listing #93.912 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Finding Summary: For a portion of the year, BHD, LLC calculated their indirect cost rate based on the total grant budget and took an equal amount of that per month instead of calculating the indirect cost rate per direct expenditures for each month. When they started to calculate the indirect cost rate per direct expenditures for each month, they used the wrong cost pool per the budget and award. Responsible Individuals: Valarie Howard, CFO Corrective Action Plan: Historically, the indirect cost received by this grant has not been dependent of the direct expenditures. Based on verbal conversations with the HRSA grant project manager, requesting reimbursement for the indirect costs evenly over the year based on the budget submitted was acceptable. Therefore, the accounting treatment has been reflective of that. However, management agrees that recording the indirect cost based on the direct cost expenditures monthly is reasonable and appropriate and will make the change accordingly. The action plan was implemented immediately upon communication of the finding. Due to the timing of the prior year audit and communication of findings, the implementation of the action plan was mid- year during the current fiscal year resulting in a repetitive finding. Anticipated Completion Date: Action plan was implemented directly after issuance of prior year audit and communication of finding to management (March 2025).

View Audit 402591

Finding 1216062 (2025-002)

Material Weakness 2025

Town of Westerly, Rhode Island

RI

Subrecipient Monitoring Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Audit Finding Reference: 2025-002 Document Policies and Procedures Over Federal Awards Planned Corrective Action: - Perform a comprehensive review of existing federal award policies and procedures - Develop and formally document policies covering federal award administration, allowable costs, procur...

Audit Finding Reference: 2025-002 Document Policies and Procedures Over Federal Awards Planned Corrective Action: - Perform a comprehensive review of existing federal award policies and procedures - Develop and formally document policies covering federal award administration, allowable costs, procurement, cash management, subrecipient monitoring, reporting, and record retention Planned Implementation Date of Corrective Action: 1/1/2026 Person Resposible for Corrective Action: Finance Director/Senior Accountant Grant Administrator

View Audit 402590

Finding 1216048 (2025-001)

Material Weakness 2025

Wenatchee School District No. 246

WA

Allowable Costs / Cost Principles Subrecipient Monitoring

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort and eligibility requirements. Name, address, and telephone of District contact person: Karen Walters 235 Sunset Ave Wenatchee, WA 98801 (509) 663-8161 Corrective...

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort and eligibility requirements. Name, address, and telephone of District contact person: Karen Walters 235 Sunset Ave Wenatchee, WA 98801 (509) 663-8161 Corrective action the auditee plans to take in response to the finding: Time-and-Effort The district will update time-and-effort forms to reflect actual work time. During this audit, the district implemented a regular time-and-effort review schedule to ensure the district is complying with requirements. Eligibility The district will allocate school funding based on the grant application’s school eligibility ranking. Additionally, the district will allocate carryover funding based on the ranking allocation. During the school year, the district will periodically review budget aligns with the eligibility ranking. Anticipated date to complete the corrective action: Summer 2026

View Audit 402585

Finding 1216047 (2025-004)

Material Weakness 2025

Communities in Schools of the Dallas Region, Inc.

TX

Allowable Costs / Cost Principles Cash Management Material Weakness

Finding 2025-004: Allowable Costs – Material Weakness in Internal Controls Over Compliance and Compliance Finding Summary of Finding: Duplicate charges were identified within grant reimbursement submissions across reimbursement periods. Management Response During FY2025, grant reimbursement review p...

Finding 2025-004: Allowable Costs – Material Weakness in Internal Controls Over Compliance and Compliance Finding Summary of Finding: Duplicate charges were identified within grant reimbursement submissions across reimbursement periods. Management Response During FY2025, grant reimbursement review procedures were not sufficiently standardized to consistently identify duplicate charges submitted across reimbursement periods. Management is currently evaluating and formalizing enhanced grant reimbursement review workflows designed to improve consistency of review and reduce the risk of duplicate charges within reimbursement submissions. Planned procedures include reconciliation of reimbursement schedules to the general ledger, review of previously submitted reimbursement activity prior to submission of subsequent requests, and clarification of review responsibilities between management and the outsourced accounting team. Management is in the process of documenting these procedures and plans to implement the enhanced review workflow as soon as practicable. Separately, as part of ongoing remediation and compliance monitoring efforts, management has implemented a recurring quarterly Grant Utilization Review process intended to improve oversight of reimbursement activity, grant utilization, and reconciliation procedures across reimbursement periods. The first review meeting is scheduled for June 2026.

View Audit 402576

Finding 1216046 (2025-002)

Material Weakness 2025

Communities in Schools of the Dallas Region, Inc.

TX

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Material Weakness

Summary of Finding: Supporting documentation for certain grant-related expenditures could not be located during compliance testing. Management Response The Organization maintained procedures requiring supporting documentation for grant-related expenditures during FY2025; however, supporting document...

Summary of Finding: Supporting documentation for certain grant-related expenditures could not be located during compliance testing. Management Response The Organization maintained procedures requiring supporting documentation for grant-related expenditures during FY2025; however, supporting documentation was not consistently centralized or retained in a manner that allowed for efficient retrieval during audit testing. Management has since implemented centralized electronic document retention procedures for invoices, grant support, reimbursement documentation, and related approvals. Responsibilities for maintaining and reviewing grant documentation have been clarified between management and the outsourced accounting team to improve accountability and consistency of execution. In addition, grant reimbursement support is now reviewed prior to submission and retained electronically to strengthen ongoing compliance monitoring and audit support procedures. Management has also developed and implemented a recurring Grant Utilization Review meeting process designed to support periodic review of grant activity, supporting documentation, reimbursement status, and compliance-related matters. The first quarterly review meeting is scheduled for June 2026.

View Audit 402576

Finding 1216045 (2025-001)

Material Weakness 2025

Communities in Schools of the Dallas Region, Inc.

TX

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties

Summary of Finding: Documentation evidencing management approval was not available for certain expenditures selected during compliance testing. Management Response The Organization maintained procedures requiring management approval of invoices and expenditures during FY2025; however, documentation ...

Summary of Finding: Documentation evidencing management approval was not available for certain expenditures selected during compliance testing. Management Response The Organization maintained procedures requiring management approval of invoices and expenditures during FY2025; however, documentation evidencing approval was not consistently retained during periods of staffing transition and operational change. Management has since enhanced and centralized invoice approval workflows within Accounting Seed to improve consistency of approval documentation retention. Approval responsibilities have been clarified by department and management level, and supporting approval documentation is now maintained electronically within the accounting workflow system. Management has also reinforced approval and documentation retention expectations with department leadership and accounting personnel and implemented periodic review procedures to improve ongoing compliance with internal policies and grant requirements.

View Audit 402576

Finding 1216037 (2025-006)

Material Weakness 2025

Kilgore Junior College District

TX

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Student Financial Aid Cluster – Assistance Listing No.: Various Recommendation: We recommend that management strengthen and formalize internal control procedures over federal awards, including documented reviews, approvals, and reconciliations. We also recommend management provide training to staff ...

Student Financial Aid Cluster – Assistance Listing No.: Various Recommendation: We recommend that management strengthen and formalize internal control procedures over federal awards, including documented reviews, approvals, and reconciliations. We also recommend management provide training to staff responsible for federal program administration to ensure understanding of Uniform Guidance requirements. Lastly, management should establish periodic internal reviews to verify that control activities are consistently performed and documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the finding: Due to staff turnover, the loan reconciliation process was performed by the Director of Financial Aid. While the design of the internal controls over the Title IV loan reconciliation process remain accurate, timely, and compliant with federal requirements, Management will formalize procedures to ensure appropriate independent review when the Director completes the reconciliation in the event of staff absences or turnover. Specifically, internal control procedures will require that all reconciliations be reviewed and approved by a qualified supervisor, with documentation retained to evidence both the performance and review of the control. Additionally, the policy will designate appropriate backup personnel to perform the review function in situations where the primary supervisor is unavailable due to absence or staffing changes. Name of the contact person responsible for corrective action: Jackie Kelley, Director of Financial Aid & Scholarship Planned completion date for corrective action plan: June 2026

View Audit 402570

Finding 1215950 (2025-004)

Material Weakness 2025

Neighborhood Defender Service, Inc.

NY

Allowable Costs / Cost Principles § 200.403

Contact Persons Responsible: Primary – Anthonia Ibe, CFO In Absence (Alternative): – Jesus Infante, CAO Management acknowledges this finding and has developed a corrective action plan to strengthen the underlying control, assign clear ownership, and ensure timely implementation. The Agency is develo...

Contact Persons Responsible: Primary – Anthonia Ibe, CFO In Absence (Alternative): – Jesus Infante, CAO Management acknowledges this finding and has developed a corrective action plan to strengthen the underlying control, assign clear ownership, and ensure timely implementation. The Agency is developing a time-tracking and documentation system to capture the actual time spent by allocable staff on federal programs, ensuring that charges to federal awards reflect the actual work performed in compliance with 2 CFR Part 200.403. Concurrently, HR is implementing a standardized pay rate approval and documentation process to ensure all approved salaries are formally recorded and retained by the human resources department. As an interim measure, manual time attestation will be in place by August 31, 2026, while the longer-term system is finalized. The CFO and CAO will work jointly to implement and monitor corrective actions in cross-functional areas, including timekeeping, payroll documentation, record retention, lease tracking, IT access controls, vendor onboarding, procurement documentation, and personnel training. This shared structure is intended to ensure that policy revisions are supported by clear workflows, staff training, documentation standards, and periodic compliance review. By October 31, 2026, the Agency will complete communication and training related to payroll approval controls.

View Audit 402512

Finding 1215939 (2025-001)

Material Weakness 2025

South Kitsap School District No. 402

WA

Subrecipient Monitoring Eligibility Allowable Costs / Cost Principles

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with federal eligibility requirements. Name, address, and telephone of District contact person: Heather Korten, Director of Business Services 2689 Hoover Ave SE Port Orchard, WA 9836...

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with federal eligibility requirements. Name, address, and telephone of District contact person: Heather Korten, Director of Business Services 2689 Hoover Ave SE Port Orchard, WA 98366 (360) 874-7015 Corrective action the auditee plans to take in response to the finding: 1. Documented Eligibility Review The District will require a documented eligibility review for each student included on any future CWSD application. This review will verify that each student is both: A dependent of active-duty military personnel; and A student with a qualifying severe disability under CWSD program requirements. 2. Comparison to Impact Aid Source Data Prior to submission, the Business Department will compare the students included on the CWSD application to the District’s source documentation for military-connected students, including data maintained through the U.S. Department of Education Impact Aid process. 3. Secondary Review by Business Services The Business Department will perform an independent secondary review of the CWSD application before submission. The application will not be submitted until Business Services has reviewed and documented agreement between the application data and the District’s supporting eligibility records. 4. Special Services Review of Disability Eligibility and Costs The Special Services Department will remain responsible for identifying students with disabilities who may meet the CWSD criteria and for supporting the special education cost information included in the application. 5. Written Procedures and Sign-Off Requirements The District will establish written procedures identifying the staff responsible for preparing, reviewing, approving, and retaining documentation for the CWSD application. The procedures will require documented review and approval by both Special Services and Business Services prior to submission. 6. Documentation Retention The District will retain supporting documentation for each student included on the application, including military-connected status, disability eligibility support, cost documentation, review checklists, and final application approval. 7. Training and Annual Review Staff involved in preparing or reviewing the CWSD application will review applicable program requirements annually before the application is prepared. Anticipated date to complete the corrective action: June 30, 2026

View Audit 402505

Corrective Action Plans

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