Corrective Action Plans

Finding 1205669 (2025-008)

Material Weakness 2025

CA

Allowable Costs / Cost Principles § 200.430

Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to the Housing Choice Voucher (HCV) Program under CFDA 14.871 must be supported by recordsthat accurately reflect actual work performed, as required under 2 ...

Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to the Housing Choice Voucher (HCV) Program under CFDA 14.871 must be supported by recordsthat accurately reflect actual work performed, as required under 2 CFR 200.430(i). The City's prior practice of using predetermined allocation percentages to distribute payroll across multiple funding sources did not fully satisfy the federal standards for documenting actual time worked on HCV-eligible activities. Management notes that the projected questioned costs of $214,045 represent a projection of potential unallowable payroll charges based on the sample tested, that were unsupported due to insufficient time documentation and are not necessarily unallowable. The City will coordinate with HUD to determine the appropriate resolution of these questioned costs. The corrective actions outlined in Finding 2025-007 apply equally to the HCV Program. Specifically: 1. Actual Time Reporting: All Housing Authority employees who perform HCV program activities are required to document actual hours worked per program activity on their timesheets, effective immediately. 2. Discontinuation of Fixed Allocations: Predetermined allocation percentages will no longer serve as the basis for payroll charges to the HCV Program. All charges must be supported by actual time records. 3. Timesheet System and Training: Housing Authority staff will be included in the system enhancement and training initiatives described in Finding 2025-007, with particular emphasis on documentation standards under the HCV Program's applicable requirements4. Quarterly Internal Compliance Reviews: HCV payroll charges will be included in the Accounting & Finance Division's quarterly compliance reviews, with findings reported to the City Manager and the Housing Authority Director.

View Audit 397378

Finding 1205667 (2025-007)

Material Weakness 2025

City of South Gate

CA

Allowable Costs / Cost Principles § 200.430

Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to federal awards must be supported by documentation accurately reflecting the actual work performed, as required under 2 CFR 200.430(i). The City's prior pr...

Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to federal awards must be supported by documentation accurately reflecting the actual work performed, as required under 2 CFR 200.430(i). The City's prior practice of distributing payroll costs using predetermined allocation percentages for employees working across multiple programs did not fully satisfy federal requirements for documenting actual time expended on CDBG-eligible activities. Management notes that the projected questioned costs of $217,355 represent a projection of potential unallowable payroll charges based on the sample tested, that were unsupported due to insufficient time documentation and are not necessarily unallowable. The City isprepared to work with HUD to determine the appropriate resolution of these questioned costs. The City is implementing the following corrective actions: 1. Actual Time Reporting: Effective immediately, all employees who charge any portion of their time to federal grant programs—including CDBG—are required to document actual hours worked on each program or activity in their timesheets. Time entries must correspond to specific program activities and must be reviewed and certified by the employee's supervisor each pay period. 2. Discontinuation of Fixed Allocation Percentages: The City is eliminating the use of predetermined payroll allocation percentages as the basis for charging personnel costs to federally funded programs. Future payroll charges to federal awards will be based exclusively on actual documented hours, in compliance with 2 CFR 200.430(i). 3. Staff Training: The City will provide mandatory training to all employees who charge time to federal programs, supervisors responsible for timesheet review, and payroll staff. Training will cover the requirements of 2 CFR 200.430, the City's updated time documentation procedures, and the consequences of noncompliance.4. Quarterly Internal Compliance Reviews: Beginning in Q1 of FY 2025-26, the Accounting & Finance Division will conduct quarterly reviews of payroll charges to all federal programs to confirm that expenditures are supported by compliant time records. Results will be reported to the applicable department directors.

View Audit 397378

Finding 1205587 (2025-001)

Material Weakness 2025

El Valor Corporation

IL

Allowable Costs / Cost Principles

General Disbursement Allocation Recommendation: We recommend the Organization emphasize compliance with their established policies and procedures related to maintaining appropriate up-to-date supporting documentation for cash disbursements. Explanation of disagreement with audit finding: There is no...

General Disbursement Allocation Recommendation: We recommend the Organization emphasize compliance with their established policies and procedures related to maintaining appropriate up-to-date supporting documentation for cash disbursements. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: Management will enhance existing policies and procedures to strengthen monitoring of disbursement documentation and allocation records to ensure they are updated as changes occur. Name of the contact person responsible for corrective action: Jillian Gonzalez, Executive Director Planned completion date for corrective action plan: Implementation began immediately and will be ongoing.

View Audit 397281

Finding 1205563 (2025-001)

Material Weakness 2025

Narragansett Bay Commission

RI

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

Narragansett Bay Commission Corrective Action Plan For the Fiscal Year Ended June 30, 2025 NBC acknowledges and concurs with the finding 2025-001 in the Fiscal Year 2025 Single Audit of the Narragansett Bay Commission conducted by Bacon & Company LLC. The Bucklin Point Wastewater Treatment Facility ...

Narragansett Bay Commission Corrective Action Plan For the Fiscal Year Ended June 30, 2025 NBC acknowledges and concurs with the finding 2025-001 in the Fiscal Year 2025 Single Audit of the Narragansett Bay Commission conducted by Bacon & Company LLC. The Bucklin Point Wastewater Treatment Facility Digester Complex Improvements “the Project”) has been funded by state revolving fund loan proceeds from the Rhode Island Infrastructure Bank (RIIB) and a Department of Energy grant. NBC’s contracting for civil projects has procedures in place to ensure the inclusion of all applicable Federal requirements as it relates to the use of RIIB funds. Although the Project followed Federal requirements as it relates to RIIB funds, NBC did not have appropriate controls in place to verify that applicable construction contracts for the Project included additional Federal requirements related to compliance with the Build America, Buy America Act as ostensibly required by the Department of Energy grant agreement. NBC has subsequently verified and received certification from the Project’s prime contractor that the Project satisfies Build America, Buy America Act requirements. Corrective Action Plan: In order to ensure that all applicable grant agreement terms are satisfied, NBC has hired a grant administrator to centralize all grant related activities within the Finance Division. NBC intends to develop additional procedures in conjunction with the acceptance and execution of a grant agreement to accomplish the following: 1) Coordinate with applicable Cost Center (as grant recipient) to verify that NBC has the ability to comply with the terms of the grant agreement, and 2) Create a comprehensive checklist of key obligations, including reporting deadlines, allowable costs, matching requirements, and special conditions and verify continued compliance on a regular interval, and 3) Limit award of contracts, expenditure of funds for grant funded projects, and reimbursement requests for grant funds until grant administrator verifies compliance with applicable terms and conditions. Anticipated Completion Date- May 31, 2026 Contact Person – Kevin McDonald, Chief Financial Officer

View Audit 397248

Finding 1205540 (2025-003)

Material Weakness 2025

THE NETWORK OF BEHAVORIAL HEALTH PROVIDERS, INC.

TX

Allowable Costs / Cost Principles Reporting

Finding #2025-003 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract #: 220163. Condition and context: In testing 40 nonpayroll transactions, we...

Finding #2025-003 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract #: 220163. Condition and context: In testing 40 nonpayroll transactions, we found one instance of an unallowable cost for a late fee charged to the grant and 2 instances of transactions recognized in the incorrect fiscal year. Additionally, 1 out of 9 payroll transactions were incorrectly allocated resulting in the understatement of payroll charged to the grant. Recommendation: Amend NBHP’s policies and procedures to include independent review of allowability of cost and payroll allocations. Planned corrective action: NBHP will modify its policies and procedures to include independent review of transaction for allowability and accuracy. Responsible officer: Lisa Albert, Executive Director. Estimated completion date: April 30, 2026.

View Audit 397225

Finding 1205539 (2025-002)

Material Weakness 2025

THE NETWORK OF BEHAVORIAL HEALTH PROVIDERS, INC.

TX

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

Finding #2025-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract #: 220163. Condition and context: In testing 1 out of 6 vendors subject to ...

Finding #2025-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract #: 220163. Condition and context: In testing 1 out of 6 vendors subject to procurement, NBHP had not verified and documented that the Houston Health Department was not suspended or disbarred. Recommendation: Amend the procurement policy to require verification that person or organization is not suspended or disbarred. Planned corrective action: NBHP will modify its procurement policy to include verification that persons or organizations are not suspended or disbarred. Responsible officer: Lisa Albert, Executive Director. Estimated completion date: April 30, 2026.

View Audit 397225

Finding 1205536 (2025-001)

Material Weakness 2025

Lindenhurst Union Free School District

NY

Allowable Costs / Cost Principles § 200.430

2025-001. Allowable Costs/Cost Principles United States Department of Education, Passed Through New York State, Department of Education: Title I Grants to Local Educational Agencies ALN: 84.010A Condition: Subpart E, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for...

2025-001. Allowable Costs/Cost Principles United States Department of Education, Passed Through New York State, Department of Education: Title I Grants to Local Educational Agencies ALN: 84.010A Condition: Subpart E, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the work performed.” The documentation should support the distribution of the employee’s compensation among specific activities if the employee works on more than one federal award, or a federal award and non-federal award. The preparation of personnel activity reports (PAR) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, the District prepared periodic certification equivalents, but it did not comply with the documentation standards prescribed by Subpart E, 2 CFR §200.430; the amount of one employee’s actual payroll charged to the Title I federal award was less than the allocation percentage on the periodic certification reports that were signed by the employee’s supervisor. Planned Corrective Action: The District will adopt procedures that ensure that appropriate documentation for time and effort will be used to support costs charged to the federal award, and comply with Subpart E, 2 CFR §200.430. Responsible Contact Person: Mr. William Ludeker Assistant Superintendent for Business Lindenhurst Union Free School District 350 Daniel Street Lindenhurst, New York 11757 Anticipated Completion Date: June 30, 2026.

View Audit 397219

Finding 1205530 (2025-003)

Material Weakness 2025

Alpha One

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Management concurs in part and disagrees in part with this finding. Management has always understood that alcohol purchases may not be charged to a Federal program and are unallowable under Uniform Guidance, and we are committed to ensuring full compliance with federal cost principles. Upon identifi...

Management concurs in part and disagrees in part with this finding. Management has always understood that alcohol purchases may not be charged to a Federal program and are unallowable under Uniform Guidance, and we are committed to ensuring full compliance with federal cost principles. Upon identification of this exception, management initiated corrective measures to reinforce internal controls surrounding expense review and documentation. The accounting staff member did not have the itemized receipt at the time the expense was initially allocated. Had the receipt been available, the unallowable cost would have been identified, and the expense would not have been allocated to program costs. Once the receipt was reviewed, the alcohol purchase was identified as unallowable under Federal programs and allocated correctly to administration costs. To prevent similar issues moving forward, accounting staff have been re-trained on expense documentation and receipt-tracking requirements, with emphasis on ensuring that itemized receipts are obtained and reviewed prior to allocation, reimbursement, or payment. Staff have also been reminded of the importance of validating expenditures against Uniform Guidance allowability requirements as part of their routine review procedures. Management will continue to monitor expense activity to ensure the effectiveness of these reinforced controls. The anticipated completion date for this corrective action is 11/1/2025.

View Audit 397202

Finding 1205521 (2025-005)

Material Weakness 2025

Michigan City Area Schools

IN

Allowable Costs / Cost Principles § 200.300 § 200.303 § 200.306 § 200.308 § 200.309

FINDING 2025-005 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We wil...

FINDING 2025-005 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will implement a system of internal controls to ensure allowable costs are documented and that receive board approval for all pay rates moving forward. However, we disagree with the finding on the allowable costs pertaining to the Financial Consulting Claims. We wrote them into the grant, and the grant was approved. There was also no Business Manager or Chief Financial Officer in place during the pandemic, resulting in the need for the consulting firm. Anticipated Completion Date: We anticipate that this correction will be in place by July 2026.

View Audit 397194

Finding 1205516 (2025-003)

Material Weakness 2025

Michigan City Area Schools

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2025-003 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We wil...

FINDING 2025-003 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will implement a system of internal controls to ensure that the Form 9 and all underlying expenditures are properly documented. Anticipated Completion Date: We anticipate that this correction will be in place by July 2027

View Audit 397194

Finding 1205515 (2025-002)

Material Weakness 2025

Michigan City Area Schools

IN

Allowable Costs / Cost Principles School Nutrition Programs Internal Control / Segregation of Duties § 200.208 § 200.303 § 200.403

FINDING 2025-002 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We wil...

FINDING 2025-002 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will implement a system of internal controls to ensure that the Form 9 and all underlying expenditures are properly documented. Anticipated Completion Date: We anticipate that this correction will be in place by July 2027

View Audit 397194

Finding 1205506 (2025-002)

Material Weakness 2025

Susquehanna Workforce Network INC

MD

Allowable Costs / Cost Principles § 200.334 § 200.403

SWN will develop additional review procedures over contracts to ensure proper adjustments are proposed to allocate expenses between proper periods. Procedure for approval of the Finance Committee by May 21, 2026. This procedure may include implementation of official listing of SWN's written contract...

SWN will develop additional review procedures over contracts to ensure proper adjustments are proposed to allocate expenses between proper periods. Procedure for approval of the Finance Committee by May 21, 2026. This procedure may include implementation of official listing of SWN's written contracts and vendor contracts. Additionally, the Organization plans to work with vendors to align contracts with the fiscal reporting period.

View Audit 397189

Finding 1205505 (2025-001)

Material Weakness 2025

Hampton School District

NH

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Corrective Actions 1. Immediately cease noncompliant payment practices • Stop all direct payments or reimbursements to private schools • Communicate the change to all stakeholders 2. Establish compliant fiscal procedures • Ensure the district (LEA) retains control of Title I funds at all times • Pay...

Corrective Actions 1. Immediately cease noncompliant payment practices • Stop all direct payments or reimbursements to private schools • Communicate the change to all stakeholders 2. Establish compliant fiscal procedures • Ensure the district (LEA) retains control of Title I funds at all times • Payments must be made: o To third-party vendors, or o For district-managed services (staff, materials, contracts) • Update written fiscal procedures to explicitly prohibit: o Reimbursement-based arrangements with private schools o Direct cash transfers to private schools • Require pre-approval for all Title I expenditures related to equitable services 3. Implement a vendor-based service model • Contract with approved vendors to provide services to private school students 4. Strengthen review and approval processes • Require multi-level approval (program+ finance) before payments • Cross-check expenditures against: o Approved equitable services plan o Student eligibility and services provided 7. Provide targeted fiscal training • Train finance and program staff on: o Control of funds requirements o Allowable vs. unallowable costs under Title I

View Audit 397188

Finding 1205504 (2025-005)

Material Weakness 2025

Oregon Cascades West Council of Governments

OR

Allowable Costs / Cost Principles

We have revised our process and operating procedure to apply indirect cost methods consistently across all federal grants. We have already corrected the error in FY 2026.

View Audit 397187

Finding 1205499 (2025-003)

Material Weakness 2025

Trustees of the College of the Holy Cross

MA

Allowable Costs / Cost Principles Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.430

Corrective Action Plan: The identified conditions related to timesheets for hourly employees. To mitigate the risk of missing approval documentation for payroll charged to Federal R&D awards, the College is formalizing procedures requiring PI or supervisor review of applicable timesheets, configurin...

Corrective Action Plan: The identified conditions related to timesheets for hourly employees. To mitigate the risk of missing approval documentation for payroll charged to Federal R&D awards, the College is formalizing procedures requiring PI or supervisor review of applicable timesheets, configuring the approval workflow in Workday to require and retain evidence of approval, and implementing periodic monitoring to identify and correct missing approvals. Timeline for Implementation of Corrective Action Plan: These corrective actions are being implemented before the end of fiscal year 2026.

View Audit 397172

Finding 1205477 (2025-001)

Material Weakness 2025

Town of Avon, Ma

MA

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

Finding 2025-001 Condition: Semi-annual time and effort certifications were not maintained for grant employees whose salaries and wages were not supported by detailed time records. Corrective Action Planned: Controls will be implemented to ensure all time and effort certifications are completed and ...

Finding 2025-001 Condition: Semi-annual time and effort certifications were not maintained for grant employees whose salaries and wages were not supported by detailed time records. Corrective Action Planned: Controls will be implemented to ensure all time and effort certifications are completed and maintained by the appropriate grant administrators for all grant employees. Anticipated Completion Date: June 30, 2026 Contact: Larry Azer, School Business Manager

View Audit 397156

Finding 1205441 (2025-002)

Material Weakness 2025

Camden County Technical Schools

NJ

Allowable Costs / Cost Principles

Grant salaries and purchase orders will be reviewed for proper accounting. Monthly review with the grant coordinator and the business office will occur to verify appropriate charges.

View Audit 397116

Finding 1205414 (2025-002)

Material Weakness 2025

University of Maryland Medical System Corporation

MD

Allowable Costs / Cost Principles Cash Management Reporting

C. Cash Management; L. Reporting Evidence of Review and Approval of the Reported Expenditures Assistance Listing Assistance Listing 93.078 – Strengthening Emergency Care Delivery in the United States Healthcare System through Health Information and Promotion Assistance Listing 16.753 – Congressional...

C. Cash Management; L. Reporting Evidence of Review and Approval of the Reported Expenditures Assistance Listing Assistance Listing 93.078 – Strengthening Emergency Care Delivery in the United States Healthcare System through Health Information and Promotion Assistance Listing 16.753 – Congressionally Recommended Awards Federal Agency: Department of Health and Human Services Department of Justice Recommendation: Management should reassess the design of its controls to ensure documentation is retained that evidences the review and approval of expenditures submitted to the DOJ and DHHS for reimbursement. Explanation of disagreement with audit finding: There is no disagreement with the finding and recommendation. Action planned/taken in response to finding: The Corporation established a centralized UMMS Office for Research and Sponsored Programs Administration (ORSPA) department in December 2025. ORSPA and Corporate Financial Reporting are developing standard operating procedures and policies for the required review and reconciliation of grant expenditures per the accounting system to the financial submissions to the granting agency, including requirements for maintaining evidence of the review(s). A shared central repository for financial submissions was created. For each grant, this repository includes the financial submission and evidence of review and approval of the financial report submissions. The ORSPA and Corporate Financial Reporting will monitor the repository and work with grant managers to ensure evidence of financial submission review and approval is maintained. Anticipated Completion Date – June 30, 2027 Name(s) of the contact person(s) responsible for corrective action: Jeff Chadwick, Financial Reporting Director, jeff.chadwick@umm.edu

View Audit 397091

Finding 1205412 (2025-001)

Material Weakness 2025

University of Maryland Medical System Corporation

MD

Allowable Costs / Cost Principles

A. Activities Allowed or Unallowed; B. Allowable Costs/Cost Principles Review and Approval of Payroll Expenditures Assistance Listing 16.753 – Congressionally Recommended Awards Federal Agency: Department of Justice (DOJ) Recommendation: Management should retain documentation that evidences the revi...

A. Activities Allowed or Unallowed; B. Allowable Costs/Cost Principles Review and Approval of Payroll Expenditures Assistance Listing 16.753 – Congressionally Recommended Awards Federal Agency: Department of Justice (DOJ) Recommendation: Management should retain documentation that evidences the review and approval of expenditures submitted to the DOJ. Explanation of disagreement with audit finding: There is no disagreement with the finding and recommendation. Action planned/taken in response to finding: The Corporation established a centralized UMMS Office for Research and Sponsored Programs Administration (ORSPA) department in December 2025. The ORSPA department created a standard pre-award approval process for all sponsored proposals prior to submission or award acceptance. The pre-award approval process applies to all federal, state, local, private and commercial funding opportunities across all UMMS entities and covers new, renewal, resubmission and supplemental proposals. The pre-award approval process includes review of budgeted expenditures and setup of a specific grant identifier within the accounting system and timekeeping system. Grant managers will be provided with updated policies and standard operating procedures, including the required review and approval of payroll expenditures via review of employee timecards in the Kronos and/or Workforce Management timekeeping systems. In lieu of review of timecards, ORSPA and Corporate Financial Reporting established a shared repository for financial submissions to the granting agencies, payroll reports, and detailed expenditure reports generated from the accounting system. The payroll reports and detailed expenditure reports are made available to grant managers to assist in their review and approval of expenditures included in their financial submissions to the granting agencies. The ORSPA and Corporate Financial Reporting will monitor the repository and work with grant managers to ensure evidence of review of the expenditures included within the financial submission is maintained. Anticipated Completion Date – June 30, 2027 Name(s) of the contact person(s) responsible for corrective action: Jeff Chadwick, Financial Reporting Director, jeff.chadwick@umm.edu

View Audit 397091

Finding 1205352 (2025-001)

Material Weakness 2025

Health Resources in Action, INC

MA

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Allowable Costs / Cost Principles

2025-001 Program Name: Community-Based Violence Intervention and Prevention Initiative; Assistance Listing Number: 16.045 Compliance Requirement Affected: Procurement Recommendation: HRIA should improve controls/processes around reporting to ensure documentation is retained related to procurements m...

2025-001 Program Name: Community-Based Violence Intervention and Prevention Initiative; Assistance Listing Number: 16.045 Compliance Requirement Affected: Procurement Recommendation: HRIA should improve controls/processes around reporting to ensure documentation is retained related to procurements made with federal funds. Disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has implemented additional procedures to ensure that required procurement documentation is appropriately retained for each vendor in accordance with Uniform Guidance requirements. These procedures were implemented and management considers the matter to be fully remediated during fiscal year 2026. Name of the contact person responsible for corrective action: Beth Doreian, CFO Planned completion date for corrective action plan: March 1, 2026

View Audit 397051

Finding 1205339 (2025-003)

Material Weakness 2025

The Edinburg Center, Inc.

MA

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

U.S. Department of Health and Human Services Block Grants for Community Mental Health Services– Assistance Listing No. 93.958 Recommendation: It is recommended that the Organization design and implement controls to ensure that time and effort related to federal programs is appropriately documented a...

U.S. Department of Health and Human Services Block Grants for Community Mental Health Services– Assistance Listing No. 93.958 Recommendation: It is recommended that the Organization design and implement controls to ensure that time and effort related to federal programs is appropriately documented and retained in accordance with Uniform Guidance requirements, regardless of contract type. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: New Management is continuing advocacy to recover missing documentation from previous payroll provider. New payroll provider maintains all records and archives. For those employees who work on federal grants, attestations of time spent on programs are being produced. Name(s) of the contact person(s) responsible for corrective action: Kate Mombourquette Planned completion date for corrective action plan: Completed 12/31/2025

View Audit 397046

Finding 1205317 (2025-002)

Material Weakness 2025

Town of Stoneham, Massachusetts

MA

Allowable Costs / Cost Principles Material Weakness Period of Performance

The Stoneham Public Schools are under new fiscal management as of October 29, 2025. As part of this change, grants are being initiated with an information sheet to all grant managers which provides start and end dates for eligible expenditures, as well as MUNIS budget codes for directly expensing re...

The Stoneham Public Schools are under new fiscal management as of October 29, 2025. As part of this change, grants are being initiated with an information sheet to all grant managers which provides start and end dates for eligible expenditures, as well as MUNIS budget codes for directly expensing reasonable and allocable expenses to the grant via a requisition/purchase order/ AP process used throughout the district. The grant budget codes are established in direct coordination with the approved grant budget at the time of award, and will be updated if amendments are required. The finance office will also receive these grant information sheets, and provide a cross check of the eligibility and coding requirements as requisitions are processed. No expenses shall be allowed in advance of an approved purchase order.

View Audit 397023

Finding 1205315 (2025-001)

Material Weakness 2025

Town of Stoneham, Massachusetts

MA

Reporting Allowable Costs / Cost Principles Period of Performance

The town notified the U.S. Treasury Department of the error in reporting on 01/20/26, requesting to update the FY25 Project & Expenditure Report. The U.S. Treasury Department stated “Prior submitted reports are not eligible to be reopened for revisions since the reporting deadline has passed. The SL...

The town notified the U.S. Treasury Department of the error in reporting on 01/20/26, requesting to update the FY25 Project & Expenditure Report. The U.S. Treasury Department stated “Prior submitted reports are not eligible to be reopened for revisions since the reporting deadline has passed. The SLFRF Project and Expenditure Reports are cumulative reports and any adjustments needed can be made in the current reporting period if it is still open or next open reporting period.” In addition, the town has implemented quarterly reconciliation procedures to ensure all eligible expenditures for the project reporting period are reported correctly. These procedures include a secondary review of all expenditures, reporting parameters and requirements.

View Audit 397023

Finding 1205309 (2025-003)

Material Weakness 2025

Hra of Bemidji Minnesota

MN

Allowable Costs / Cost Principles HUD Housing Programs

Contact Person Stacy Grosse, Executive Director Corrective Action Plan The Authority will implement controls to make sure there is additional required documentation before any action for payment. Planned Completion Date for CAP Fiscal year beginning July 1, 2025

View Audit 397015

Finding 1205295 (2025-001)

Material Weakness 2025

Intecare, INC

IN

Allowable Costs / Cost Principles Cash Management

Supporting Services for Veteran Families Program – Assistance Listing No. 64.033 Recommendation: The Organization should design controls to ensure the draw down requests and related support are formally reviewed and approved by the Finance Director before submitting the request to the awarding agenc...

Supporting Services for Veteran Families Program – Assistance Listing No. 64.033 Recommendation: The Organization should design controls to ensure the draw down requests and related support are formally reviewed and approved by the Finance Director before submitting the request to the awarding agency and that the support is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization understands that guidance received during the grant period for utilizing the de minimis method indicated that a modified total direct cost rate of up to 15% (capped at 10% of the total grant) may be allowable under the program; however, based on the audit interpretation, the Organization acknowledges that a modified total direct cost rate of 10% under federal guidelines may be applicable. Accordingly, the Organization will align with the applicable de minimis requirements and will obtain and retain clear documentation supporting the approved modified total direct cost rate for the program. Name(s) of the contact person(s) responsible for corrective action: Noah Masson Planned completion date for corrective action plan: 4/30/2026

View Audit 396999

Corrective Action Plans

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