Corrective Action Plans

Finding 1218249 (2026-001)

Material Weakness 2026

MA

Cash Management HUD Housing Programs Subrecipient Monitoring

Remaining balance was deposited on April 16, 2026. In the future management will ensure deposits are made timely or obtain HUD appproval permitting delay if there were cash flows issues.

View Audit 404495

Finding 1241740 (2025-004)

Material Weakness 2025

TUCOEMAS FEDERAL CREDIT UNION

CA

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

Material Weakness and Noncompliance: See Finding 2025-004. Recommendation: Management should establish formal grant acceptance and reporting procedures, including a reporting calendar, assigned preparer and reviewer responsibilities, documented supervisory review, reconciliation of reported amounts ...

Material Weakness and Noncompliance: See Finding 2025-004. Recommendation: Management should establish formal grant acceptance and reporting procedures, including a reporting calendar, assigned preparer and reviewer responsibilities, documented supervisory review, reconciliation of reported amounts to supporting records, and verification of timely submission. Action Taken: Prior to this finding, but subsequent to the audit period, the Credit Union established a formal grant management policy that defines roles, documentation standards, tracking procedures, reporting reconciliations, record retention, review and approval requirements, and periodic monitoring. The Credit Union considers all relevant requirements of Uniform Guidance, as well as specific requirements set forth in grant agreements and contracts. The Credit Union will maintain grant tracking records and reconcile grant activity to the general ledger and required award reports. Completion Date: July 28, 2026

View Audit 415753

Finding 1241739 (2025-003)

Material Weakness 2025

TUCOEMAS FEDERAL CREDIT UNION

CA

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

Material Weakness and Noncompliance: See Finding 2025-003. Recommendation: Management should implement a grant review and approval acceptance process, grant reporting calendar and review process that reconciles reporting periods to the Credit Union's fiscal year, assigns preparer and reviewer respon...

Material Weakness and Noncompliance: See Finding 2025-003. Recommendation: Management should implement a grant review and approval acceptance process, grant reporting calendar and review process that reconciles reporting periods to the Credit Union's fiscal year, assigns preparer and reviewer responsibilities, documents review, and reconciles reported categories to the general ledger and supporting records before submission. Action Taken: Prior to this finding, but subsequent to the audit period, the Credit Union established a formal grant management policy that defines roles, documentation standards, tracking procedures, reporting reconciliations, record retention, review and approval requirements, and periodic monitoring. The Credit Union considers all relevant requirements of Uniform Guidance, as well as specific requirements set forth in grant agreements and contracts. The Credit Union will maintain grant tracking records and reconcile grant activity to the general ledger and required award reports. Completion Date: July 28, 2026

View Audit 415753

Finding 1241738 (2025-002)

Material Weakness 2025

TUCOEMAS FEDERAL CREDIT UNION

CA

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness

Material Weakness: See Finding 2025-002. Recommendation: Management should establish a formal grant management policy defining roles, documentation standards, tracking procedures, report reconciliations, record retention, review and approval requirements, and periodic monitoring. The policy and asso...

Material Weakness: See Finding 2025-002. Recommendation: Management should establish a formal grant management policy defining roles, documentation standards, tracking procedures, report reconciliations, record retention, review and approval requirements, and periodic monitoring. The policy and associated procedures should consider all relevant requirements of Uniform Guidance, as well as specific requirements set forth in grant agreements and contracts. Action Taken: Prior to this finding, but subsequent to the audit period, the Credit Union established a formal grant management policy that defines roles, documentation standards, tracking procedures, reporting reconciliations, record retention, review and approval requirements, and periodic monitoring. The Credit Union considers all relevant requirements of Uniform Guidance, as well as specific requirements set forth in grant agreements and contracts. The Credit Union will maintain grant tracking records and reconcile grant activity to the general ledger and required award reports. Completion Date: July 28, 2026

View Audit 415753

Finding 1241735 (2025-002)

Material Weakness 2025

Shelton School District No. 309

WA

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

The District will strengthen its procedures for documenting time and effort for employees whose salaries or benefits are charged to federal or other restricted funding sources. Employees will be required to complete the appropriate time and effort documentation in a timely manner and in accordance w...

The District will strengthen its procedures for documenting time and effort for employees whose salaries or benefits are charged to federal or other restricted funding sources. Employees will be required to complete the appropriate time and effort documentation in a timely manner and in accordance with applicable grant requirements and District procedures. Financial Services, in coordination with the grant administrator and supervisors, will establish a process to monitor the submission and completion of time and effort records. Supervisors will review documentation for completeness and accuracy, and Financial Services will follow up on missing or late records. The District will provide guidance to employees and supervisors regarding time and effort requirements, including when documentation is required, who is responsible for completing and approving it, and the importance of submitting records timely. Documentation will be retained in an organized manner and made available for audit or monitoring purposes. Responsible Party: Financial Services Manager, Grant Administrator, and Supervisors Monitoring: Financial Services will periodically review time and effort records to ensure required documentation has been submitted, approved, and retained. Missing or untimely documentation will be followed up on and corrective action taken as necessary.

View Audit 415745

Finding 1241720 (2025-005)

Material Weakness 2025

City of Atlanta

GA

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.332 § 200.403

In response to this finding, management will take the following actions. 1. Establish a process to review significant or uncertain compliance recommendations with the grantor and document the guidance received before implementation or reimbursement submission, as applicable. 2. Train applicable City...

In response to this finding, management will take the following actions. 1. Establish a process to review significant or uncertain compliance recommendations with the grantor and document the guidance received before implementation or reimbursement submission, as applicable. 2. Train applicable City personnel on grant requirements and revised compliance procedures.

View Audit 415738

Finding 1241719 (2025-004)

Material Weakness 2025

City of Atlanta

GA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

In response to this finding, management will take the following actions. 1. Adoption of the De Minimis Rate: The City will apply the 15% de minimis indirect cost rate, as permitted under Uniform Guidance, to applicable federal awards where a federally negotiated indirect cost rate agreement is not i...

In response to this finding, management will take the following actions. 1. Adoption of the De Minimis Rate: The City will apply the 15% de minimis indirect cost rate, as permitted under Uniform Guidance, to applicable federal awards where a federally negotiated indirect cost rate agreement is not in place. This approach will provide consistency in the recovery of indirect costs and ensure compliance with federal requirements. 2. Formalize Procedures: The Controller's Office will develop and document procedures governing the application of indirect cost rates, including guidance on when the de minimis rate may be used, calculation methodologies, required documentation, and approval requirements. 3. Training: Training will be provided to grants management, accounting, and program staff responsible for grant budgeting, financial reporting, and reimbursement requests to ensure a clear understanding of indirect cost rate requirements and the application of the minimis rate. 4. Management Oversight: The Controller's Office will establish a periodic review process to ensure the de minimis indirect cost rate is applied consistently, calculations are accurate, and adequate supporting documentation is maintained. Any discrepancies identified during the review process will be addressed timely to ensure compliance with Uniform Guidance requirements related to Indirect Cost Recovery.

View Audit 415738

Finding 1241704 (2025-002)

Material Weakness 2025

City of Atlanta

GA

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

The City of Atlanta’s Department of Grants and Community Development (DGCD) will establish and implement internal controls to ensure all relevant first-tier subawards are reported timely and accurately in accordance with FFATA requirements. Effective immediately, FFATA applicability will be evaluate...

The City of Atlanta’s Department of Grants and Community Development (DGCD) will establish and implement internal controls to ensure all relevant first-tier subawards are reported timely and accurately in accordance with FFATA requirements. Effective immediately, FFATA applicability will be evaluated during DGCD’s subrecipient contracting process. After the final action legislation but prior to contract execution, DGCD Program and Fiscal Operations staff will review all subawards to determine if FFATA reporting thresholds are applicable and document applicability in subaward files. DGCD staff will complete required FFATA submissions through SAM.gov by the end of the month following the month in which the subaward contract is executed. Additionally, DGCD Program and Fiscal Operations managers will conduct quarterly reviews of all active subrecipient agreements to verify compliance with FFATA requirements. Supporting documentation will be properly maintained in subrecipient files. DGCD will document reporting status, due dates, and completion dates in a standardized FFATA tracking log and checklist. DGCD’s Compliance Division will perform periodic oversight reviews to verify adherence to FFATA requirements and ensure corrective action is taken promptly if reporting deficiencies are identified. Additionally, the Controller’s Office will establish a periodic review process to ensure all City Departments are adhering to FFATA requirements.

View Audit 415738

Finding 1241661 (2025-003)

Material Weakness 2025

Center for Land-Based Learning

CA

Allowable Costs / Cost Principles § 200.334

Finding #2025-3 Planned Corrective Action and Status Update CLBL agrees with the finding regarding records retention and documentation controls. However, CLBL does not agree with the refence to a missing “Federal grant agreement.” The documentation in question consisted of two amendments associated ...

Finding #2025-3 Planned Corrective Action and Status Update CLBL agrees with the finding regarding records retention and documentation controls. However, CLBL does not agree with the refence to a missing “Federal grant agreement.” The documentation in question consisted of two amendments associated with staff changes at USDA and did not materially affect the grant funding, allowable costs, or expenditures. CLBL will strengthen its records retention procedures by maintaining centralized electronic copies of grant agreements, amendments, and supporting documentation. As full system migration was completed in December 2025, supporting documentation is fully intact for future audits. a) Anticipated completion date: December 31, 2026; ongoing thereafter b) Responsible Contact Person: IsaMarie McIntyre

View Audit 415728

Finding 1241627 (2025-003)

Material Weakness 2025

Crosspurpose

CO

Allowable Costs / Cost Principles Reporting § 200.403 § 200.404 § 200.405 § 200.413

Finding 2025-003 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 202955 Questioned costs: None Torch Technology Solutions, a subsidiary of CrossPurpose, and charged amounts to the FFY 2026 SNA...

Finding 2025-003 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 202955 Questioned costs: None Torch Technology Solutions, a subsidiary of CrossPurpose, and charged amounts to the FFY 2026 SNAP Employment and Training Program for compliance and reporting, finance and cost allocation, program delivery, technology infrastructure, and participant-support functions. The Organization did not retain sufficient documentation to demonstrate that the amounts billed represented actual costs incurred during the applicable periods, were necessary and reasonable for the federal award, were directly attributable to program administration or participant services, or were allocated using a reasonable and documented methodology. Torch Technology Solutions also lacked sufficient documentation for certain subcontractor and service-provider expenditures. Available records did not adequately demonstrate the services provided, when they were performed, the benefit to the federal program, or the allocation methodology. Certain gift card payments also lacked documentation showing participant need, redemption, and allowable program-related use. The Colorado Department of Human Services identified similar concerns in its fiscal management evaluation. Management recorded a liability for the repayment obligation, reversed the related program revenue, and excluded the associated costs from the Schedule of Expenditures of Federal Awards. The Organization subsequently terminated its Employment First Program contract with Torch Technology Solutions, terminated the staff, and ceased operations. The Organization returned $283,425 requested in connection with the State's findings. Corrective Action Plan Management agrees with the finding. CrossPurpose has developed a process to review any future reimbursement requests submitted by subsidiaries and require supporting documentation showing that the costs are allocable, reasonable, necessary, and connected to benefits provided to eligible participants. For Torch Technology Solutions, all employees were terminated effective May 15, 2026, and the Organization terminated the subsidiary's contract with the Department. The Organization fulfilled the Department's requests arising from the fiscal management evaluation, returned $283,425, and ceased all operations of the subsidiary.The closure of Torch Technology Solutions is disclosed as a subsequent event in the notes to the financial statements. As of now, there are no existing grant awards held by subsidiaries. Anticipated completion date: May 15, 2026

View Audit 415691

Finding 1241626 (2025-002)

Material Weakness 2025

Crosspurpose

CO

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.403 § 200.404 § 200.405

Finding 2025-002 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 206885 Questioned costs: $412,100 The Department-approved Employment First Program Operator Plan incorporated into Contract No....

Finding 2025-002 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 206885 Questioned costs: $412,100 The Department-approved Employment First Program Operator Plan incorporated into Contract No. 26 IHGA 201182 included a Launch licensing materials cost of $2,600 per participant. The plan described the participantbased fee and related services, and the executed contract incorporated the methodology. Related budget documents also contemplated billing at established component rates rather than reimbursement based solely on actual costs incurred. The Organization billed $412,100 under the participant-based licensing methodology. Based on the approved plan, supporting budget schedules, and executed contract, management believed the methodology was approved by the Department, was reasonable and necessary, and complied with program requirements.After the program began, the Organization engaged with a reputable independent firm to perform a transferpricing and fair value study to evaluate and support the methodology and contribute the technology to a separate legal entity. The Colorado Department of Human Services later questioned whether the retained documentation adequately supported the participant-based fee and the allocation of charges to the federal program. The Department had approved invoices and reimbursed these costs before raising concerns during its fiscal management evaluation. Management recorded a liability for the amounts identified by the State pending final resolution. Corrective Action Plan Management has established a separate legal entity to hold the technology associated with these charges. On May 4, 2026, before the fiscal management evaluation, management engaged an accounting firm to benchmark the fee and independently evaluate the participant-based pricing methodology. Management is also working to value the developed technology for contribution to the separate legal entity. Although documentation was retained, management has developed a plan to enhance the documentation supporting the methodology under federal cost principles. The enhanced records will describe the basis for the participant fee, the supporting assumptions and analyses, and the benefit received by the federal program. Anticipated completion date: October 30, 2026

View Audit 415691

Finding 1241625 (2025-001)

Material Weakness 2025

Crosspurpose

CO

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.403 § 200.404 § 200.405

Finding 2025-001 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 206885 Questioned costs: $155,141 During the audit, the Organization reported $155,141 of contractual expenditures under the FF...

Finding 2025-001 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 206885 Questioned costs: $155,141 During the audit, the Organization reported $155,141 of contractual expenditures under the FFY 2026 SNAP Employment and Training Program. The expenditures primarily related to technology, outsourced IT support, operations, consulting, and other program support provided by third-party service providers and contractors. The Organization retained invoices and supporting records, but the documentation did not provide enough detail to demonstrate how certain contractual costs were allocated to eligible participants of the federal program, and whether time-and-effort records, utilization metrics, or other records supported the charges. Management submitted an Employment First Program Operator Plan to the Department at the beginning of the contract including the estimated contractual costs, but did not retain documentation showing whether the selected contractors were communicated to or approved by the Department as modifications to the approved plan. The Department had approved invoices and reimbursed these costs before raising concerns during its fiscal management evaluation. Management recorded a liability for the amounts identified by the State pending final resolution. Corrective Action Plan CrossPurpose has implemented a revised cost allocation plan consistent with federal cost principles. Because the Organization serves people throughout Denver neighborhoods regardless of eligibility for government benefits, certain shared costs cannot always be tied directly to eligible participants. The revised plan pools those costs and allocates them based on eligible participants as a proportion of total participants served, using participant data the Organization already tracks. CrossPurpose has also implemented a process to review contractors whose costs are charged to grants and confirm that each contractor has completed the applicable approval process required by the grant before reimbursement requests are submitted. Anticipated completion date: August 1, 2026

View Audit 415691

Finding 1241620 (2025-005)

Material Weakness 2025

Wagoner County

OK

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

Upon OSAI's recommendations, we are putting into place protocols in an official policy and procedures manual specific to all federal grants. With their guidance, future federal grants will be better documented and monitoed in accordance with this policy.

View Audit 415664

Finding 1241619 (2025-004)

Material Weakness 2025

Wagoner County

OK

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties

Upon OSAl's recommendation, we are putting into place protocols in an official policy and procedures manual specific to all Federal Grants. With their guidance, future Federal Grants will be better documented and monitored in accordance with this policy.

View Audit 415664

Finding 1241602 (2025-005)

Material Weakness 2025

Jefferson Parish

LA

Allowable Costs / Cost Principles HUD Housing Programs Eligibility § 200.303 § 200.334 § 200.403

HSDD management is committed to strengthening internal controls over participant eligibility documentation, HAP payment support, annual reexaminations, rent-reasonableness determinations, and HUD-50058 reporting. These efforts will include reviewing the identified exceptions, working to retrieve any...

HSDD management is committed to strengthening internal controls over participant eligibility documentation, HAP payment support, annual reexaminations, rent-reasonableness determinations, and HUD-50058 reporting. These efforts will include reviewing the identified exceptions, working to retrieve any outstanding documentation from prior records or service providers, enhancing supervisory oversight, and providing additional training to program personnel. HSDD management recognizes the documentation deficiencies identified during the audit, the absence of supporting documentation does not necessarily establish that the underlying participants were ineligible or that HAP payments were improperly calculated. Accordingly, management intends to review the identified exceptions and work with the appropriate parties to resolve questioned costs in accordance with HUD's final management decision. HSDD management, specifically its Director Dorian Rawles, remains committed to implementing corrective actions designed to improve documentation retention, strengthen program compliance, and reduce the likelihood of similar findings in future reporting periods.

View Audit 415643

Finding 1241496 (2025-005)

Material Weakness 2025

City of Redondo Beach

CA

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency § 200.430

Recommendation: We recommend that the City review and update internal controls to ensure that supporting documentation for allowable time charges to grant programs is properly maintained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in...

Recommendation: We recommend that the City review and update internal controls to ensure that supporting documentation for allowable time charges to grant programs is properly maintained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to reinforce the policy that requires employees funded by federal grants to document the actual time and effort spent working on those grant activities. Staff continues with the updated timekeeping method for individuals charging partial time to the Housing Choice Voucher (Section 8) program to track actual hours dedicated to the program rather than through budget allocation, and a quarterly certification form is prepared for employees that charge 100% to the Housing Choice Voucher (Section 8) program. Supervisor approvals are documented through the financial system’s electronic workflow. Reports are generated to demonstrate completion. New staff receive training on the payroll approval process to ensure consistent implementation and compliance with procedures. Name(s) of the contact person(s) responsible for corrective action: Imelda Delgado, Housing Manager Planned completion date for corrective action plan: January 2026

View Audit 415572

Finding 1241480 (2025-002)

Material Weakness 2025

Wayne County Board of Education

GA

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting § 200.303 § 200.403 § 200.404 § 200.430

FA 2025-002 Strengthen Controls over Expenditures Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass- Through Entity: Assistance Listing Numbers and Titles: Federal Award Number: Questioned Costs: Activities Allowed or Unallowed Allowable Costs/Cost Pri...

FA 2025-002 Strengthen Controls over Expenditures Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass- Through Entity: Assistance Listing Numbers and Titles: Federal Award Number: Questioned Costs: Activities Allowed or Unallowed Allowable Costs/Cost Principles Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education 10.553 - School Breakfast Program 10.555 - National School Lunch Program 255GA324N1199 (Year: 2025) $36,927 Description: A review of employee compensation expenditures and journal entries related to the Child Nutrition Cluster revealed that the School District’s internal control procedures were not operating appropriately to ensure that employee compensation and journal entries were appropriately reviewed, approved, and documented. Corrective Action Plans: The School District will strengthen internal controls to ensure that employee compensation and journal entries charged to the Child Nutrition Cluster are properly reviewed, approved, supported, and documented. • Review and document procedures for processing and allocating employee compensation charged to the Child Nutrition Cluster. • Require appropriate supervisory review and approval of employee compensation, including time and effort documentation, payroll allocations, and related supporting documentation. • Establish a documented review and approval process for journal entries affecting Child Nutrition funds, including verification of account codes, amounts, supporting documentation, and proper authorization. • Provide training to Finance and Child Nutrition personnel on payroll documentation, allowable costs, journal entries, and federal grant requirements. • Conduct periodic reviews of payroll expenditures and journal entries to ensure required approvals and supporting documentation are maintained and any errors are identified and corrected timely. Estimated Completion Date: June 30, 2027 Contact Person: Kimberly Harrison Telephone: 912-427-1000 Email: kharrison@wayne.k12.ga.us

View Audit 415566

Finding 1241392 (2025-005)

Material Weakness 2025

Capital City Youth Services, Inc.

FL

Allowable Costs / Cost Principles

2025-005 ALN 93.623 Basic Center Program - Allowable Activities and Allowable Costs/Cost Principles - Disbursement Documentation Management's Response: Management acknowledges the finding regarding inadequate supporting documentation for an expenditure charged to the Basic Center Program and agrees ...

2025-005 ALN 93.623 Basic Center Program - Allowable Activities and Allowable Costs/Cost Principles - Disbursement Documentation Management's Response: Management acknowledges the finding regarding inadequate supporting documentation for an expenditure charged to the Basic Center Program and agrees that federal award expenditures should be adequately supported and appropriately authorized. No questioned costs were identified by the auditors. This finding is related to the supporting documentation deficiency identified in Financial Statement Finding 2025-005. Corrective action will therefore be addressed in conjunction with that finding. Going forward, procedures will require sufficient documentation to support the nature, amount, business purpose, approval, and allowability of expenditures charged to federal awards, along with appropriate review and record retention. Because the underlying transaction occurred prior to the administrative transition, these actions are prospective and are intended to strengthen federal award documentation and reduce the risk of recurrence. Anticipated Implementation Date: July 1, 2026 Responsible Party: Big Bend Community Based Care, Inc. dba NWF Health Network

View Audit 415506

Finding 1241390 (2025-004)

Material Weakness 2025

Capital City Youth Services, Inc.

FL

Allowable Costs / Cost Principles

2025-004 ALNs 93.550 Transitional Living & 93.623 Basic Center Program - Allowable Activities and Allowable Costs/Cost Principles Payroll Documentation Management's Response: Management acknowledges the finding regarding unavailable payroll documentation supporting expenditures charged to the Transi...

2025-004 ALNs 93.550 Transitional Living & 93.623 Basic Center Program - Allowable Activities and Allowable Costs/Cost Principles Payroll Documentation Management's Response: Management acknowledges the finding regarding unavailable payroll documentation supporting expenditures charged to the Transitional Living and Basic Center Programs. Management agrees that payroll costs charged to federal awards should be adequately documented and supported. No questioned costs were identified by the auditors. This finding is related to the payroll documentation and record-retention deficiency identified in Financial Statement Finding 2025-004. Corrective action will be addressed in conjunction with that finding. Going forward, procedures will require retention of documentation supporting employee pay rates, approved time records, payroll registers, payroll allocations, and other records necessary to substantiate payroll expenditures charged to federal awards. While unavailable historical records cannot be retroactively recreated in all instances, these actions are intended to strengthen payroll documentation and federal award compliance prospectively. Anticipated Implementation Date: July 1, 2026 Responsible Party: Big Bend Community Based Care, Inc. dba NWF Health Network

View Audit 415506

Finding 1241386 (2025-002)

Material Weakness 2025

Capital City Youth Services, Inc.

FL

Allowable Costs / Cost Principles

2025-002 ALN 93.623 Basic Center Program- Allowable Activities and Allowable Costs/Cost Principles - Cost Allocation Plan Management's Response: Management acknowledges the finding related to the allocation, documentation, and reconciliation of expenditures charged to the Basic Center Program and ag...

2025-002 ALN 93.623 Basic Center Program- Allowable Activities and Allowable Costs/Cost Principles - Cost Allocation Plan Management's Response: Management acknowledges the finding related to the allocation, documentation, and reconciliation of expenditures charged to the Basic Center Program and agrees that federal award expenditures should be properly allocated, supported, and reconciled to the Organization's accounting records. No questioned costs were identified by the auditors. This finding is related to the cost allocation deficiency identified in Financial Statement Finding 2025-002. Corrective action will therefore be addressed in conjunction with that finding. Management and the new administrative company will review the cost allocation methodology, strengthen supporting documentation, and require applicable federal program expenditure reports and schedules to be reconciled to the general ledger and appropriately reviewed. Because the underlying transactions occurred prior to the administrative transition, these actions are prospective and are intended to strengthen federal award accounting and reduce the risk of recurrence. Anticipated Implementation Date: July 1, 2026 Responsible Party: Big Bend Community Based Care, Inc. dba NWF Health Network

View Audit 415506

Finding 1241262 (2025-001)

Material Weakness 2025

Detroit Police Athletic League, Inc.

MI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding: The Organization did not have adequate and effective controls over compliance in place as it relates to activities allowed or unallowed and allowable costs. We noted instances where payroll and non-payroll related expenditures did not have documentation of review. Corrective Response: Manag...

Finding: The Organization did not have adequate and effective controls over compliance in place as it relates to activities allowed or unallowed and allowable costs. We noted instances where payroll and non-payroll related expenditures did not have documentation of review. Corrective Response: Management is committed to strengthening how we track and allocate hours to grant-funded projects to ensure full compliance with 2 CFR §200.430. Going forward, the organization will implement a time study approach to support the allocation of personnel costs to federal grants. Employees working across multiple funding sources will participate in periodic time studies designed to reasonably estimate the distribution of their time based on actual activities performed. The results of these time studies will be used as the basis for allocating payroll costs to the appropriate grants, and will be supported by documentation and supervisory review. We will also implement consistent tools and processes to ensure allocations are applied systematically across all funding sources. On a monthly basis, the finance team will review and reconcile payroll allocations to ensure they align with the established methodology. In addition, we will provide training and ongoing oversight to reinforce compliance and prevent similar issues in the future.

View Audit 415391

Finding 1241258 (2025-002)

Material Weakness 2025

Midcoast Maine Community Action

ME

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Management concurs with this finding and has taken steps to strengthen controls over the preparation, review, and submission of fiscal reports. For fiscal year 2026, the Organization has implemented enhanced internal controls requiring the senior accountant to prepare the reports, program directors ...

Management concurs with this finding and has taken steps to strengthen controls over the preparation, review, and submission of fiscal reports. For fiscal year 2026, the Organization has implemented enhanced internal controls requiring the senior accountant to prepare the reports, program directors to review and approve all programmatic and fiscal reports for accuracy, completeness, and compliance prior to submission to the outsourced accounting for final fiscal review. Documentation of these reviews and approvals is maintained to provide evidence of oversight. Written procedures have been updated to clearly define responsibilities, review timelines, and approval requirements, and periodic monitoring will be conducted to ensure controls remain effective, particularly during staff transitions. These actions are intended to strengthen accountability, preserve continuity, and reduce the risk of incomplete or inaccurate reporting. In addition, staff responsible for federal Head Start grant reporting, including the President/CEO, Head Start Director, and fiscal staff, attended the Fiscal Accountability, Integrity, & Risk (FAIR) Forum in September 2026 to further strengthen our understanding of the regulations pertaining to this federal award. Also, the Organization’s Senior Accountant will attend Head Start’s National Center on Program Management and Fiscal Operations (PMFO) Institute to learn practical strategies related to financial leadership, internal controls, financial reporting, cost allocation, audit readiness, and organizational accountability. This training will go far to ensure a clear understanding of reporting requirements, including completion of SF-425 reports and the reporting of recipient share of expenditures. The anticipated completion date for this corrective action is September 30, 2026.The PFMO training pertaining to this finding will be completed by November 30, 2026.

View Audit 415374

Finding 1241255 (2025-002)

Material Weakness 2025

Town of Marlborough

CT

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

Suspension and Debarment over COVID-19 America Rescue Plan Act Recommendation: We recommend that the Town design controls to ensure an adequate review process in place to review potential contractors to determine they are not suspended or debarred. Explanation of disagreement with audit finding: The...

Suspension and Debarment over COVID-19 America Rescue Plan Act Recommendation: We recommend that the Town design controls to ensure an adequate review process in place to review potential contractors to determine they are not suspended or debarred. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Town has developed a procedure to review the System for Award Management (SAM) before engaging with a contractor in a project that uses federal funds including funds from the America Rescue Plan Act. A written process will be prepared to record and maintain appropriate documentation. Name of the contact person responsible for corrective action: Finance Director and Town Planner Planned completion date for corrective action plan: Since this report is overdue, the estimated date is before the start of the FY 26 audit.

View Audit 415373

Finding 1241232 (2025-001)

Material Weakness 2025

Clayton County Community Services Authority, Inc.

GA

Allowable Costs / Cost Principles Reporting

The management of Clayton County Community Services Authority, Inc. has reviewed the above referenced finding and fully agrees with the recommendation that all financial reporting and submission requirements and deadlines required by federal and state regulation be adhered to for future periods. Wit...

The management of Clayton County Community Services Authority, Inc. has reviewed the above referenced finding and fully agrees with the recommendation that all financial reporting and submission requirements and deadlines required by federal and state regulation be adhered to for future periods. With the completion of the fiscal year 2025 audit, the organization is working diligently with the audit firm to complete the fiscal year 2026 audit. Preliminary year end close out and reconciliations of fiscal year 2026 general ledger transactions and reports have already begun. The organization is working closely with the audit firm with the immediate transition into the fiscal year 2026 audit schedule. All subsequent year's audits have been completed and the fiscal year 2025 audit will be submitted as soon as possible in order to bring the organization current and in compliance with this finding. The anticipated timeline for the completion of the fiscal year 2026 audit December 31, 2026. The agency anticipates presenting the fiscal year 2026 final audit to the Board of Directors at the January 2027 Board meeting. With the completion of the FY2026 audit, the agency will be in full compliance with the Annual Audit requirements as set forth by federal and state regulations. This will bring the agency into full compliance for this finding.

View Audit 415315

Finding 1241173 (2025-001)

Material Weakness 2025

Columbia River Mental Health Services

WA

Cash Management Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.305

CRMHS management concurs with the finding. During the fiscal year ended June 30, 2025, CRMHS did not consistently operate internal controls over federal cash management as designed. Specifically, a federal draw was processed in excess of immediate cash needs and was not fully reconciled to supportin...

CRMHS management concurs with the finding. During the fiscal year ended June 30, 2025, CRMHS did not consistently operate internal controls over federal cash management as designed. Specifically, a federal draw was processed in excess of immediate cash needs and was not fully reconciled to supporting allowable expenditures prior to submission. This resulted in federal funds being drawn in advance of program disbursement requirements. Management acknowledges that this practice does not comply with 2 CFR §200.305, which requires non-federal entities to minimize the time between drawdown of federal funds and their disbursement for program purposes. While the funds were ultimately expended on allowable program costs, the timing of the draw created a compliance exception and reflects a material weakness in internal control over compliance. Management takes this matter seriously and has implemented corrective measures to strengthen cash management oversight and reconciliation procedures. Such actions include: CRMHS has completed a full reconciliation of all drawdowns under Assistance Listing 93.696 to supporting allowable expenditures through June 30, 2025. • Any excess cash balances identified were evaluated and adjusted to ensure compliance with federal cash management requirements. • Pre-Draw Reconciliation Requirement—No draw request may be submitted without documented reconciliation to recorded allowable expenditures. • Segregation of Duties and Review—the draw request and documented reconciliation will be reviewed and signed off on by a second qualified member of the accounting team. • Monthly Grant Cash Monitoring—CRMHS will compare cumulative drawdowns to cumulative allowable expenditures to identify and resolve any excess cash position.

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