Corrective Action Plans

Finding 1215533 (2025-002)

Material Weakness 2025

Tuerk House, Inc.

MD

Allowable Costs / Cost Principles Reporting

Tuerk House, Inc. recognizes the importance of maintaining compliance with federal grant requirements related to allowable costs and documentation standards. The Organization acknowledges the continued deficiencies identified in the areas of time and effort reporting and supporting documentation for...

Tuerk House, Inc. recognizes the importance of maintaining compliance with federal grant requirements related to allowable costs and documentation standards. The Organization acknowledges the continued deficiencies identified in the areas of time and effort reporting and supporting documentation for expenditures charged to grant programs and reaffirms its commitment to achieving full compliance. To address this repeat finding, Tuerk House has implemented or is continuing to implement the following corrective actions: • Implemented a formal time and effort certification process requiring employees to certify actual time worked on federal grant activities on a regular basis, rather than relying on budgeted allocations. • Developed a standardized cost allocation methodology that aligns with actual grant activity and is supported by verifiable documentation. • Required that all expenditures charged to federal awards be supported by complete and accurate source documentation, including vendor invoices, timesheets, and approvals. • Established a document retention policy consistent with 2 CFR § 200.334 to ensure all supporting records are retained for the required period and readily accessible for audit or review. Training sessions for program and finance staff have been conducted, and ongoing training will continue to ensure consistent understanding and application of these updated policies and procedures. Organization Contact Person Responsible for Corrective Action – Kisun Peters, Director of Finance Anticipated Completion Date – June 30, 2026

View Audit 402190

Finding 1215515 (2025-001)

Material Weakness 2025

Association of Diabetes Care & Education Specialists

IL

Allowable Costs / Cost Principles Significant Deficiency

Delivering Evidence-Led inTerventions in Arkansas to Advance Healthy Equity and Access in Diabetes Care (DELTA AHEAD) Recommendation: We recommend the Organization review its policies and procedures during the check signing process to ensure all approvals are obtained as required by the Organization...

Delivering Evidence-Led inTerventions in Arkansas to Advance Healthy Equity and Access in Diabetes Care (DELTA AHEAD) Recommendation: We recommend the Organization review its policies and procedures during the check signing process to ensure all approvals are obtained as required by the Organization's internal control policy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Accounting staff will review the policies, procedures, and workflow with ADCES and grant-focused staff to ensure there is a common understanding across the organization. Name of the contact person responsible for corrective action: Matthew Biecker, Chief Financial Officer Planned completion date for corrective action plan: Immediately

View Audit 402177

Finding 1215463 (2025-006)

Material Weakness 2025

Delta Research and Educational Foundation

DC

Allowable Costs / Cost Principles Material Weakness Matching / Level of Effort / Earmarking § 200.430

Views of Responsible Officials: All the Foundation's employees now complete an excel timesheet that is then submitted to their supervisor for review and approval. Payroll is processed only after all employee timesheets are approved and received by the Senior Accountant who processes payroll.

View Audit 402102

Finding 1215451 (2025-002)

Material Weakness 2025

Charles Drew Health Center, Inc.

NE

Allowable Costs / Cost Principles § 200.430

Allowable Costs/Cost Principles Finding Summary: During the testing performed, it was noted that the Organization transferred payroll costs between programs, however, no time and effort certification or equivalent documentation was updated to reflect the changes. Additionally, the transfer of payrol...

Allowable Costs/Cost Principles Finding Summary: During the testing performed, it was noted that the Organization transferred payroll costs between programs, however, no time and effort certification or equivalent documentation was updated to reflect the changes. Additionally, the transfer of payroll costs between grants was not properly reflected within the accounting system records by grant. Responsible Individuals: Andre Stringfellow, Chief Financial Officer Corrective Action Plan: Procedures were in progress towards the end of the current year. Staff will be trained to ensure future changes in payroll costs are updated timely within the system and documentation maintained. Staff will be trained to ensure future changes in payroll costs are updated timely within the system and documentation maintained. Anticipated Completion Date: August 2026

View Audit 402069

Finding 1215439 (2025-001)

Material Weakness 2025

New York Blood Center, Inc.

NY

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.430

Blood Diseases and Resources Research (ALN 93.839) Recommendation: We recommend that the Organization reviews their calculations around payroll costs before drawdowns and that evidence of this review is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit...

Blood Diseases and Resources Research (ALN 93.839) Recommendation: We recommend that the Organization reviews their calculations around payroll costs before drawdowns and that evidence of this review is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is in the process of implementing an upgraded grants payroll allocation costs software (Paas 2.0) that contains system controls that will detect payroll changes and automatically update, thus preventing such errors in the future. In addition to these automated software controls, management will implement review procedures in parallel as a secondary measure of control to detect and prevent such errors. Management anticipates the implementation and completion of the software project and related procedures in July 2026. Name of the contact person responsible for corrective action: Mahtab Khan Planned completion date for corrective action plan: July 2026

View Audit 402060

Finding 1215405 (2025-003)

Material Weakness 2025

Association House of Chicago

IL

Allowable Costs / Cost Principles Material Weakness Matching / Level of Effort / Earmarking

MATERIAL WEAKNESS Finding 2025-003 – Allocation and Documentation of Payroll Costs Recommendation: Management should develop a process whereby payroll costs allocated to federal grants; are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, ...

MATERIAL WEAKNESS Finding 2025-003 – Allocation and Documentation of Payroll Costs Recommendation: Management should develop a process whereby payroll costs allocated to federal grants; are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated, reasonably reflect the total activity for which the employee is compensated and support the distribution of the employee’s wages among specific activities or cost objectives if the employee woks on more than one federally funded program. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As corrective action, management implemented a new system to track time and effort effective July 1, 2025, using the Forms Assembly platform for federally funded DHS programs. For other grants, the Agency has continued to maintain supporting time and effort documentation through Excel-based records. Management recognizes that the implementation of the Forms Assembly system has presented operational challenges, particularly due to the need to reconcile information separately with the payroll system. As a result, since October 2025, management has been evaluating and vetting alternative systems that can fully integrate time and effort reporting with payroll processing. Beginning in fiscal year 2027, the Agency plans to implement a new integrated software solution that will record employee time, grant allocations, and payroll information within a single system integrated directly with payroll processing. Management believes this integrated approach will strengthen internal controls, improve the accuracy and timeliness of reporting, reduce manual reconciliation processes, and enhance compliance with federal time and effort requirements. Name of contact person responsible for corrective action: Margarita Rosas, Chief Financial Officer Planned completion date for corrective action plan: June 30, 2026

View Audit 401983

Finding 1215393 (2025-002)

Material Weakness 2025

Council of Spanish Speaking Organizations, Inc.

PA

Allowable Costs / Cost Principles Student Financial Aid Material Weakness

Material Weakness in Internal Control over Compliance and Compliance - Allowable Costs Condition: During our testing of allowable costs, we identified IT-related expenses totaling $111,669 that were charged to the major program for services that were not performed by the vendor and for which the ent...

Material Weakness in Internal Control over Compliance and Compliance - Allowable Costs Condition: During our testing of allowable costs, we identified IT-related expenses totaling $111,669 that were charged to the major program for services that were not performed by the vendor and for which the entity did not receive any benefit. These costs were subsequently reimbursed to Concilio by the funder. Recommendation: We recommend that management strengthen internal controls over vendor payments and grant billings to ensure that only costs for services actually rendered and properly supported are charged to federal awards. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has initiated corrective actions to strengthen internal controls over vendor payments, procurement, and grant billing processes. Upon discovery of the issue, management reviewed the affected transactions and ensured reimbursement of the questioned costs to the funding agency. Procedures have been enhanced to require appropriate documentation and supervisory approval confirming that services are properly rendered prior to payment and charging of costs against awards. In addition, management has strengthened vendor oversight and contract monitoring processes, including improved verification of invoices against contractual deliverables and supporting documentation. The Compliance functions have been enhanced to include periodic reviews of program expenditures, and additional staff training will be provided on allowable cost requirements, compliance standards, and documentation expectations to prevent recurrence of similar issues. Name of the contact person responsible for corrective action: Asif Mehmood, Chief Financial Officer asif.mehmood@elconcilio.net (215)627-3100 Planned completion date for the corrective action plan: June 30, 2026

View Audit 401940

Finding 1215390 (2025-001)

Material Weakness 2025

Council of Spanish Speaking Organizations, Inc.

PA

Allowable Costs / Cost Principles Student Financial Aid Subrecipient Monitoring

Material Weakness in Internal Control over Compliance Condition: During our eligibility assessment, we examined 60 files from Community Umbrella Agency 3 (CUA) foster care children to ensure they contained required documents by the City of Philadelphia and Pennsylvania's Department of Human Services...

Material Weakness in Internal Control over Compliance Condition: During our eligibility assessment, we examined 60 files from Community Umbrella Agency 3 (CUA) foster care children to ensure they contained required documents by the City of Philadelphia and Pennsylvania's Department of Human Services (DHS). Our review found missing documents, time gaps between submissions, or untimely paperwork, including the following: (a) 43 CUA Safety Assessments, (b) 38 CUA Safety Plans, (c) 15 CUA PA Model Risk Assessments, (d) 8 CUA Documented Client Visits (Structure Case Notes), (e) 21 FAST Family Advocacy Forms, (f) 21 Life Skills Assessment/ Biopsychosocial Evaluation/ IEP or Ages & Stages Questionnaire (ASQ), (g) 15 School Aged Report Cards, (h) 23 CUA Authorization to Release Information, (i) 12 CUA Immunizations, (j) 22 DHS Court Order Sheets, (k) 11 Child’s Photo, (l) 9 Initial CUA Single Case Plan, (m) 11 6-Month Updates to CUA Single Case Plan, (n) 2 Initial CUA Case Service Conference Summary Report, and (o) 2 Six Month Ongoing CUA Services Conference Summary Report. Furthermore, each child's file needed to contain specific documents from the DHS, which had to be supplied by the department or shown evidence of request by the CUA. Missing documents consisted of: (a) 23 DHS Service Authorization Forms, (b) 25 DHS CUA Provider Referral Forms, and (c) 20 DHS CUA In-Home Services Referral Forms. Recommendation: We recommend that management continue to develop policies and procedures in order to properly include all pertinent documentation within each client file as required by the City of Philadelphia, Department of Human Services. In addition, we recommend that program leadership and/or quality control department performs periodic audits of the client files to ensure all required documentation is included. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. Action taken in response to finding: 1. Hiring of Chief Compliance Officer to oversee Concilio Quality Assurance and Compliance process 2. Enhancement of the Quality Assurance Department to strengthen oversight, monitoring activities, and internal review processes across programmatic and administrative functions. 3. Implementation of monthly reviews of client files and supporting documentation to ensure accuracy, completeness, and compliance with contractual and funding requirements. 4. Provision of enhanced staff training focused on the review of audit findings, identification of control deficiencies, and timely implementation of corrective actions. Name of the contact person responsible for corrective action: Asif Mehmood, Chief Financial Officer asif.mehmood@elconcilio.net (215) 627-3100 Planned completion date for corrective action plan: June 30, 2026

View Audit 401940

Finding 1215382 (2025-002)

Material Weakness 2025

Prosser School District No. 116

WA

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

The Prosser School District is in agreement with the finding. We have a new Director, a new fiscal specialist and controls in place to double check allowable expenses. These include following the accounting manual and double checking with the program director, if there is any question whether an exp...

The Prosser School District is in agreement with the finding. We have a new Director, a new fiscal specialist and controls in place to double check allowable expenses. These include following the accounting manual and double checking with the program director, if there is any question whether an expense is allowable or not. In the event that the program director is uncertain they will reach out to ESD123 for additional support.

View Audit 401938

Finding 1215377 (2025-002)

Material Weakness 2025

Southampton Housing for the Elderly

MA

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility

Responsible Official Nichelle Brown, Senior Vice President of Property and Asset Management Plan Detail Management concurs with the audit finding related to untimely tenant recertifications and missing income documentation. Management reviewed the circumstances that contributed to the delayed comple...

Responsible Official Nichelle Brown, Senior Vice President of Property and Asset Management Plan Detail Management concurs with the audit finding related to untimely tenant recertifications and missing income documentation. Management reviewed the circumstances that contributed to the delayed completion of tenant recertifications and incomplete documentation and determined that existing internal monitoring procedures did not consistently ensure tenant recertifications were completed within required timeframes. To address these issues, management has implemented corrective actions designed to strengthen oversight and improve the timeliness and completeness of tenant recertifications. These actions include reinforcing internal tracking procedures for recertification due dates, enhancing supervisory review of tenant eligibility files, and providing additional training to staff responsible for tenant eligibility determinations and income verification. Management expects these corrective actions to be fully implemented and operating effectively for all tenant recertifications going forward, thereby improving compliance with federal award requirements and reducing the risk of future untimely tenant recertifications or missing documentation. Anticipated Completion Date The corrective action is in the process of being implemented and expected to be completed in fiscal year 2026.

View Audit 401931

Finding 1215374 (2025-002)

Material Weakness 2025

Seattle School District No. 1

WA

Allowable Costs / Cost Principles

The District concurs with the audit finding. The District acknowledges that one of the invoices reviewed during the audit did not include the required approval steps. The District would like to note, however, that this issue was identified through internal review and self-reported to the auditor upo...

The District concurs with the audit finding. The District acknowledges that one of the invoices reviewed during the audit did not include the required approval steps. The District would like to note, however, that this issue was identified through internal review and self-reported to the auditor upon discovery. The District has several internal controls in place to mitigate the risk of unallowable purchases; however, no control process is entirely preventative. The District will reinforce existing requirements by reminding all District users that after-the-fact changes are not permitted. Any instances identified in the future will be addressed individually as they are discovered.

View Audit 401923

Finding 1215370 (2025-003)

Material Weakness 2025

Edcouch-Elsa Independent School District

TX

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.403

Finding 2025-003 Duplicate expenditures charged to same grant Recommendation: We recommend the District establish and maintain proper review procedures for expenditures charged to grants prior to submission for reimbursement. Management’s View: The District will strengthen internal controls over pay...

Finding 2025-003 Duplicate expenditures charged to same grant Recommendation: We recommend the District establish and maintain proper review procedures for expenditures charged to grants prior to submission for reimbursement. Management’s View: The District will strengthen internal controls over payroll expenditures charged to federal grants by implementing a standard operating procedure that will be conducted by the Payroll Specialist of verifying payroll distribution reports, funding codes, and supporting documentation prior to submission for payment. Before each payroll is finalized, the payroll specialist will run a payroll report that will be generated and sorted by employee to verify that no duplicate charges have been applied to the same grant within the same payroll period. This review will ensure that all costs charged to federal grants during the pay period are accurate, allowable, properly coded, and not duplicated. No payroll adjustments will be keyed until timesheets have been verified against previously submitted timesheets and that they are reviewed to confirm that prior entries have not already been charged to the same grant. Additionally, a secondary review by the accountant will be conducted prior to finalizing grant-related payrolls. Effective March 1, 2026, the Payroll Accountant and Chief Financial Officer will review grant-related payroll transactions to ensure accuracy, proper funding allocation, and compliance with applicable federal requirements. Effective Date: March 1, 2026 Contact Person: Sylvia Garza, Chief Financial Officer, Edcouch-Elsa Independent School District

View Audit 401915

Finding 1215173 (2025-001)

Material Weakness 2025

The Geological Society of America

CO

Allowable Costs / Cost Principles Reporting

Finding: 2025-001 - Late Submission of Reporting Package to the Federal Audit Clearinghouse Compliance Requirement: Reporting – 2 CFR 200.512(a) Condition: The reporting package for the year ended June 30, 2025 was not submitted to the Federal Audit Clearinghouse by the required deadline of March 31...

Finding: 2025-001 - Late Submission of Reporting Package to the Federal Audit Clearinghouse Compliance Requirement: Reporting – 2 CFR 200.512(a) Condition: The reporting package for the year ended June 30, 2025 was not submitted to the Federal Audit Clearinghouse by the required deadline of March 31, 2026. Views of Responsible Officials: Management acknowledges that the reporting package was not submitted within the required timeframe and recognizes the importance of timely compliance with federal reporting requirements. Corrective Action Plan • Implementation of Formal Audit Timeline: Management will establish a formal annual audit timeline that includes key milestones for audit preparation, fieldwork, report issuance, and submission to the Federal Audit Clearinghouse. • Assignment of Responsibility: A specific individual will be designated as responsible for monitoring the audit timeline and ensuring timely submission. • Enhanced Coordination with External Auditors: Management will engage with the external auditors earlier in the fiscal year and hold regular status meetings to avoid delays. • Internal Preparedness Improvements: The organization will implement a prepared-by-client (PBC) checklist with internal deadlines. • Pre-Submission Review Process: Management will implement a final review step to confirm readiness for submission immediately upon receipt of the auditor’s reports. Anticipated Completion Date: These corrective actions will be implemented for the fiscal year ending June 30, 2026 audit cycle, with full compliance expected by the applicable Federal Audit Clearinghouse submission deadline. Responsible Party: Finance Director

View Audit 401844

Finding 1215171 (2025-001)

Material Weakness 2025

Cheney School District No. 360

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Cheney School District No. 360 September 1, 2024 through August 31, 2025 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regul...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Cheney School District No. 360 September 1, 2024 through August 31, 2025 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with federal Title I assessment system security and eligibility requirements.Name, address, and telephone of District contact person: Jamie Reed, Director of Finance and Operations 12414 S. Andrus Road (509) 559-4501 Corrective action the auditee plans to take in response to the finding: Assessment system security: Assessment Administration Procedures have been reviewed for the 2025-2026 school year by Building Assessment Coordinators (BAC). They will ensure a Test Security Building Plan (TSBP) will be provided for the WIDA assessment administered in their building this school year. BAC Assessment Google folders for 2026-2027 school year are currently being adjusted to provide additional organization to ensure all required documents are completed by BAC's then submitted to the District Assessment Coordinator (DAC) upon completion of the assessment window. Eligibility: The District has already begun corrective actions to address these concerns. District staff have reviewed federal Title I ranking and allocation requirements, including OSPI guidance related to poverty ranking methodology and the 75 percent rule. The District will implement additional review procedures during the annual Title I application and budgeting process to verify poverty calculations, school rankings, and allocation methodologies prior to submission. The District will also document comparability and supplemental funding determinations for any qualifying schools not directly served with Title I funds. Additionally, the District will provide targeted training for staff responsible for federal program administration and budgeting to ensure ongoing compliance with federal and OSPI Title I requirements. Anticipated date to complete the corrective action: Corrective review for the end of the 25-26 school year and full corrective action for the 26-27 school year.

View Audit 401839

Finding 1215148 (2025-009)

Material Weakness 2025

Friends Alliance Housing Ii,inc D/b/a Friendship House

LA

Allowable Costs / Cost Principles

Management will perform a line-item review of all exceptions identified, obtain missing documentation to support allowability and allocability, reclassify costs to non-federal cost centers where appropriate, or reimburse the program for unsupported costs. A reconciliation schedule will be prepared i...

Management will perform a line-item review of all exceptions identified, obtain missing documentation to support allowability and allocability, reclassify costs to non-federal cost centers where appropriate, or reimburse the program for unsupported costs. A reconciliation schedule will be prepared identifying each exception and resolution method. Controls will be strengthened by requiring complete documentation, implementing a multi-level review process, establishing property-specific coding procedures, and training staff on federal allowability requirements.

View Audit 401818

Finding 1215071 (2025-002)

Material Weakness 2025

McLeod Health

SC

Reporting Allowable Costs / Cost Principles § 200.400 § 200.510

Condition: The Organization lacked effective controls over the review of the SEFA to ensure that only federal expenditures were included for fiscal year 2025 and to ensure that expenditures were appropriately tracked and recorded to the correct grant period. Planned Corrective Action: The Organizati...

Condition: The Organization lacked effective controls over the review of the SEFA to ensure that only federal expenditures were included for fiscal year 2025 and to ensure that expenditures were appropriately tracked and recorded to the correct grant period. Planned Corrective Action: The Organization will enhance its reviews around SEFA preparation and federal expenditure tracking to accommodate the lack of an integrated system as well as to ensure cut-off, completeness, and classification of federal expenditures. Contact person responsible for corrective action: David Anderson Anticipated Completion Date: September 30, 2026

View Audit 401785

Finding 1215069 (2025-001)

Material Weakness 2025

Lee County, Florida

FL

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency § 200.302 § 200.303 § 200.403

Community Development Block Grants Cluster Entitlements/Special Purpose – Assistance Listing No. 14.218 Recommendation: It is recommended the County modify its procedure to include: • Improve reconciliation procedures to verify hours per pay period recorded in quarterly spreadsheet agrees to hours r...

Community Development Block Grants Cluster Entitlements/Special Purpose – Assistance Listing No. 14.218 Recommendation: It is recommended the County modify its procedure to include: • Improve reconciliation procedures to verify hours per pay period recorded in quarterly spreadsheet agrees to hours recorded in the KRONOS system. • Record grant wages using the pay rate at the beginning of the quarter if recorded on a quarterly basis or use pay rates for each pay period if recorded on a pay period basis. Explanation of disagreement with audit finding: Management concurs with the auditor’s recommendations. Action taken in response to finding: • Document the audit process in a formalized SOP and cross train all reviewers from SRGA Admin, Budget, and Fiscal. • Create a checklist to accompany each personnel draw to ensure that after rates are verified that SRGA Admin certify that no RPAs or pay adjustments were approved during the pay periods reported and if there were, a second pay rate is entered for that draw and hours are split according to accurate rates/dates. • Document the cure process in the SOP to ensure that any errors found after the fact will be corrected with HUD to remain compliant and to ensure that no funds drawn in error are retained. • Include a date verification process prior to submission of the draw to ensure that staff did not duplicate any dates. This verification will be an audit of the Time Tracking Review completed by Admin staff. Ongoing training and coaching will be administered should duplicate entries be found on final draw reports. • Audit of all personnel draws for both allocations of CDBG-DR grants will be completed using the new SOP and verification tools before the end of FY2026. Name of the contact person responsible for corrective action: Nicole Turner, Director Planned completion date for corrective action plan: The above action plan will be implemented immediately; an audit of all personnel draws will be conducted using new process and checklists by the end of FY2026.

View Audit 401782

Finding 1215066 (2025-001)

Material Weakness 2025

Central Valley School District No. 356

WA

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

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Central Valley School District No. 356 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Central Valley School District No. 356 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal eligibility requirements. Name, address, and telephone of District contact person: Mathew Knott, Director of Business Services 2218 N. Molter Road Liberty Lake, WA 99019 509-558-5437 Corrective action the auditee plans to take in response to the finding: The District does agree that one school with a poverty rate above 75% was not served. However, OSPI reviewed and approved the District’s Title I application, including our proposed ranking and allocation methodology, and no concerns or comments were raised during that review process. Additionally, the District was able to provide alternative snapshot dates demonstrating that no individual school was truly above the 75% threshold. Once the District became aware of the issue, we proactively contacted OSPI to determine whether any corrective action was necessary for the current year. OSPI’s guidance was that no changes or corrections were required for the current year and that adjustments should instead be implemented in the following year if a school exceeded the 75% threshold. Based on that direction from OSPI, the District did not make current-year corrections. Given these circumstances, including OSPI’s prior approval of the application and subsequent guidance that no corrective action was required, the District respectfully disagrees with the State Auditor’s Office conclusion that this matter rises to the level of a Finding rather than being addressed through a Management Letter. We consider this matter to be resolved as no school going into the 2025-2026 fiscal year was above the 75% threshold. Anticipated date to complete the corrective action: 8/31/2025

View Audit 401770

Finding 1215059 (2025-002)

Material Weakness 2025

Los Angeles Homeless Services Authority

CA

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties § 200.303 § 200.430

Continuum of Care Assistance Listing No. 14.267 Payroll Disbursements Recommendation: We recommend that LAHSA implement procedures to ensure that timesheet approval is documented timely. Explanation of disagreement with audit finding: There is no disagreement withthe audit finding. Action taken in r...

Continuum of Care Assistance Listing No. 14.267 Payroll Disbursements Recommendation: We recommend that LAHSA implement procedures to ensure that timesheet approval is documented timely. Explanation of disagreement with audit finding: There is no disagreement withthe audit finding. Action taken in response to finding: LAHSA has enhanced its internal controls over timesheet approvals to ensure timely documentation. Timesheet approval status reports are reviewed on a weekly basis during Chief level meetings to monitor compliance. Timesheets not approved within two days of the established deadline are escalated to the respective Chief and Deputy Chief for immediate follow-up. If timesheets remain unapproved after an additional two days, the matter is further escalated to the CEO, for prompt resolution. These procedures establish clear accountability and escalation protocols to ensure timely approval of timesheets Names of the contact persons responsible for corrective action: Gita O'Neill, Keshia Douglas, Christopher Williams, and Paul Rubenstein. Planned completion date for corrective action plan: Implemented

View Audit 401769

Finding 1215054 (2025-006)

Material Weakness 2025

Central Minnesota Jobs and Training Services

MN

Allowable Costs / Cost Principles

Finding 2025-006: Lack of Proper Updating and Reviewing of Agency Administration Allocations Recommendation: The Organization should ensure agency administration allocation schedules are updated and reviewed monthly to reflect current operations. Management should document the review and approval of...

Finding 2025-006: Lack of Proper Updating and Reviewing of Agency Administration Allocations Recommendation: The Organization should ensure agency administration allocation schedules are updated and reviewed monthly to reflect current operations. Management should document the review and approval of allocation updates properly made in the system. Action Taken: When migrating to the new accounting system, CMJTS did not originally have a process to ensure allocations were updated appropriately. We have since implemented a review process to ensure that all allocations are updated accurately and timely.

View Audit 401763

Finding 1215053 (2025-005)

Material Weakness 2025

Central Minnesota Jobs and Training Services

MN

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

Finding 2025-005: Documentation of Allocations for Certain Costs Recommendation: The Organization should reinforce its existing allocation documentation procedures by ensuring they are consistently applied to all disbursements charged to federal programs. Management should enhance oversight and moni...

Finding 2025-005: Documentation of Allocations for Certain Costs Recommendation: The Organization should reinforce its existing allocation documentation procedures by ensuring they are consistently applied to all disbursements charged to federal programs. Management should enhance oversight and monitoring controls to verify that required documentation is completed and retained for every applicable transaction. Action Taken: CMJTS has since worked with DEED to update our cost allocation policy, and DEED approved our new policy. In this policy, the CMJTS fiscal team will work with CMJTS program managers to update allocations for the upcoming month. Changes to allocations will be documented and saved for record retention. CMJTS also migrated to a new accounting system in February 2025 which makes it easier to track allocations and ensure required documentation is completed and retained.

View Audit 401763

Finding 1215052 (2025-004)

Material Weakness 2025

Central Minnesota Jobs and Training Services

MN

Allowable Costs / Cost Principles Eligibility

Finding 2025-004: Inadequate Approval Controls Over Adjusting Journal Entries and Invoices Recommendation: We recommend following documented controls to enforce approval for adjusting journal entries. We also recommend ensuring invoice processing workflows include mandatory approvals before payment....

Finding 2025-004: Inadequate Approval Controls Over Adjusting Journal Entries and Invoices Recommendation: We recommend following documented controls to enforce approval for adjusting journal entries. We also recommend ensuring invoice processing workflows include mandatory approvals before payment. We further recommend conducting periodic audits to verify compliance with approval policies. Action Taken: CMJTS migrated to a new accounting software in February of 2025. This software has systematic approval workflows built in to ensure approvals are done on journal entries before they are posted and invoices before they can be paid.

View Audit 401763

Finding 1214917 (2025-002)

Material Weakness 2025

City of Sergeant Bluff, Iowa

IA

Allowable Costs / Cost Principles Cash Management Eligibility § 200.403

Criteria: The Uniform Guidance requires the City to establish and maintain effective internal control over compliance for federal awards, including controls to reasonably ensure that costs charged to federal programs are allowable, properly supported, and comply with applicable federal requirements ...

Criteria: The Uniform Guidance requires the City to establish and maintain effective internal control over compliance for federal awards, including controls to reasonably ensure that costs charged to federal programs are allowable, properly supported, and comply with applicable federal requirements and the terms and conditions of the award. Under 2 CFR 200.403, costs charged to a federal award must be allowable, including that they be adequately documented and not be included as a cost or used to meet cost-sharing requirements of any other federally financed program in the current or a prior period. Condition: The City did not have adequately designed and implemented review controls over certain material project costs included in reimbursement requests submitted to the pass through agency. Our testing identified that the city submitted the same eligible project cost for reimbursement under two different federal grant awards, of which one was denied for reimbursement Cause: The City lacked sufficiently designed or effectively operating controls over the preparation, review, and approval of reimbursement requests for federal awards. In particular, the City's controls did not include an effective reconciliation of expenditure detail by invoice, pay application, or other unique transaction identifier across open grant awards before submission of reimbursement requests. Effect: The absence of effective review controls over material project costs increases the risk that ineligible, unsupported, or incorrectly costs could be included in reimbursement requests without timely detection and correction. The duplicate submission was not reimbursed from both federal awards and therefore does not require repayment or adjustment of reimbursement requests. This deficiency is considered a material weakness in internal control over compliance for the Department of Transportation program. Recommendation: We recommend that the City design and implement formal, documented review procedures over material project costs included in reimbursement requests. These procedures should include defined review responsibilities, documentation of the review performed, review of other federal funding reimbursement request, and supervisory oversight to ensure that all high-dollar or complex transactions are reviewed for eligibility, accuracy, and adequate supporting documentation before submission.Management Response: Management acknowledges the finding and will continue to review and controls to ensure all costs included in reimbursement requests are allowable.

View Audit 401683

Finding 1214890 (2025-002)

Material Weakness 2025

HOMER ELECTRIC ASSOCIATION, INC

AK

Allowable Costs / Cost Principles § 200.302

Description of Finding: Management should develop written procedures as required by 2 CFR Part 200.302(b)(7) Management Response: Management of Homer Electric Association concurs with the auditors’ finding regarding the absence of written procedures for determining the allowability of costs in accor...

Description of Finding: Management should develop written procedures as required by 2 CFR Part 200.302(b)(7) Management Response: Management of Homer Electric Association concurs with the auditors’ finding regarding the absence of written procedures for determining the allowability of costs in accordance with 2 CFR Part 200.302(b)(7). Corrective Action: While the Association applies applicable federal cost principles when administering grant-funded activities and no unallowable costs were identified, these practices were not formally documented in written procedures during the audit period. Management acknowledges that written procedures are required to ensure consistency, continuity, and clear guidance for personnel involved in federal grant administration. To address this matter, management will develop and implement written procedures for determining the allowability of costs charged to federal programs. These procedures will reference applicable Uniform Guidance cost principles and outline review and approval responsibilities to ensure compliance prior to costs being charged to federal awards. The procedures will be communicated to appropriate staff and incorporated into the Association’s grant administration practices. Management believes these corrective actions will strengthen internal controls over federal financial management and support continued responsible stewardship of grant funds for the benefit of the Association’s members. Projected Completion: A Federal Awards Management Policy has been drafted for executive review with formal adoption anticipated prior to June 1, 2026 Responsible Official(s): Chief Financial Officer

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Finding 1214889 (2025-001)

Material Weakness 2025

HOMER ELECTRIC ASSOCIATION, INC

AK

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting

Description of Finding: The Association did not have proper review procedures in place to document that an individual other than the one who prepared the reports are reviewing them. Management Response: Management of the Cooperative concurs with the auditors’ finding related to documentation of inde...

Description of Finding: The Association did not have proper review procedures in place to document that an individual other than the one who prepared the reports are reviewing them. Management Response: Management of the Cooperative concurs with the auditors’ finding related to documentation of independent review over federal grant reporting. Corrective Action: Reports submitted under the Community Wildfire Defense Grants program included a required certification signature by an authorized official; however, the state-provided reporting form did not include a separate preparer signature line. As a result, while management review and approval occurred prior to submission, documentation distinguishing report preparation from certification was not evident on the submitted forms. Management recognizes the importance of clearly documenting segregation of preparation and review responsibilities to evidence effective internal controls. To address this matter, the Cooperative will revise its grant reporting process to include documented identification of both the preparer and reviewer for all federal grant reports. When state-provided forms do not include a preparer acknowledgment, the Cooperative will supplement the form with an internal preparer certification or signature line that is retained with the grant file. Management believes these actions will strengthen documentation of internal controls over reporting while continuing to comply with state and federal reporting requirements. The Cooperative remains committed to responsible oversight and stewardship of federal grant funds for the benefit of its members. This change was implemented beginning with the first quarterly reporting period under the Grant Agreement in 2026. Projected Completion: A second signature line for the preparer was added to the Community Wildfire Defense Financial Progress Reports to document HEA’s review procedure. This was instituted with the First Quarterly Report submitted on 4/15/26. Responsible Official(s): Chief Financial Officer

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Corrective Action Plans

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