Corrective Action Plans

Finding 1226061 (2025-016)

Material Weakness 2025

CA

Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment Subrecipient Monitoring § 200.302 § 200.303 § 200.328 § 200.329 § 200.331

Reporting California Department of Social Services CDSS agrees with this finding and has already begun developing appropriate procedures that will support this recommendation, using the CCDF program area as a model. CDSS will implement improved procedures and consider if a grant management solution ...

Reporting California Department of Social Services CDSS agrees with this finding and has already begun developing appropriate procedures that will support this recommendation, using the CCDF program area as a model. CDSS will implement improved procedures and consider if a grant management solution would be feasible and necessary. CDSS has already begun establishing a process that determines and documents whether funding actions are reportable subrecipients or contractors. CDSS has also begun establishing a field within the CDSS accounting system that identifies subrecipients at the contract level so this data is automatically included when extracted for FFATA reporting, which will ensure reports are submitted accurately and timely. CDSS is also developing a Federal Reporting Dashboard to track all grants with FFATA reporting requirements, including due dates and completion status. Additionally, CDSS will designate a primary point and a backup person within the Federal Reporting Section to monitor all FFATA reporting deadlines. This designated staff member will issue 45 days advance notifications to the grant owner and reviewing manager, set calendar reminders for grant owners, and provide regular status updates to Accounting Management. To strengthen timely compliance, these reminders will also instruct grant owners to complete the FFATA submission 10 days before the federal deadline, ensuring sufficient time to resolve any errors that may occur during the upload process. Estimated Implementation Date: November 2026 Contact: - Jeff Fowler, Child Care Administration Bureau Chief Central Operations Branch, Child Care and Development Division - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

View Audit 408731

Finding 1226058 (2025-015)

Material Weakness 2025

State of California

CA

Subrecipient Monitoring Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.1 § 200.302 § 200.303 § 200.328 § 200.329

Reporting California Department of Social Services CDSS does not agree with this finding and its characterization as an ACF-696 reporting inaccuracy. The discrepancy between the ACF-696 and the general ledger is primarily due to timing differences. The ACF-696 was due on July 30, 2025, and relies on...

Reporting California Department of Social Services CDSS does not agree with this finding and its characterization as an ACF-696 reporting inaccuracy. The discrepancy between the ACF-696 and the general ledger is primarily due to timing differences. The ACF-696 was due on July 30, 2025, and relies on preliminary figures that were prepared before final cost allocations and accruals were posted. In contrast, the general ledger is based on the final expenditure data, including all adjustments, and finalized in September 2025. Any discrepancies or adjustments from the June 2025 quarter were reported in the following quarter. The Administration for Children and Families has confirmed with CDSS Accounting that the current practice of reflecting these adjustments in the subsequent quarter for federal reporting is acceptable. CDSS began performing the reconciliation of the ACF-696 and the general ledger following the close of FY 2024–25. However, completion of this process was delayed due to an unprecedented volume of ongoing audit activities and the significant demands associated with supporting the Department, the California Health and Human Services Agency, the continual flux of federal funding changes, and federal shutdown preparedness drills. CDSS submitted a Budget Change Proposal in response to the previous audit finding 2024-015 to complete this reconciliation between ACF-696 and the general ledger. This request has been approved, and we are in the process of hiring for this position. Once this position is filled, responsibility for the reconciliation activities will be transferred to the newly assigned staff member to ensure consistent oversight, timely completion, and ongoing maintenance of the reconciliation process. Estimated Implementation Date: September 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

View Audit 408731

Finding 1226055 (2025-014)

Material Weakness 2025

State of California

CA

Period of Performance Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.308 § 200.403

Period of Performance California Department of Social Services CDSS agrees with this finding. State operations costs incurred from July through September 2024 were incorrectly charged to FFY 2025 when the federal drawdown was processed in October, rather than being charged to FFY 2024. The issue ide...

Period of Performance California Department of Social Services CDSS agrees with this finding. State operations costs incurred from July through September 2024 were incorrectly charged to FFY 2025 when the federal drawdown was processed in October, rather than being charged to FFY 2024. The issue identified in the audit period has been corrected in the ACF-696 report submitted on April 30, 2026. Upon identifying the error, CDSS provided additional training to staff and added a second level of supervisory review to ensure the appropriate federal fiscal year is applied when processing drawdowns that cross both the state and federal fiscal years. These corrective actions are intended to prevent similar misclassifications and strengthen compliance with federal reporting requirements. Estimated Implementation Date: July 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

View Audit 408731

Finding 1226052 (2025-013)

Material Weakness 2025

State of California

CA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Special Tests and Provisions California Department of Social Services CDSS agrees with this finding. CDSS Accounting has coordinated with the Foster Care Rates and Data Section to update internal procedures to post the annual Sharing Ratio All County Letter (ACL) by August 1st to counties prior to t...

Special Tests and Provisions California Department of Social Services CDSS agrees with this finding. CDSS Accounting has coordinated with the Foster Care Rates and Data Section to update internal procedures to post the annual Sharing Ratio All County Letter (ACL) by August 1st to counties prior to the August 20th deadline for the July Assistance Claims. This will ensure the counties have sufficient time to implement the approved sharing ratio for the current fiscal year. CDSS will now include a link to the current ACL with the monthly CA800 claim templates. After the claims are submitted, accounting will perform a review of the rates for the 58 counties to ensure the correct sharing ratio was applied. Estimated Implementation Date: September 2026 Contact: - Jay Lal, Chief, Accounting and Disbursement Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

View Audit 408731

Finding 1226051 (2025-012)

Material Weakness 2025

State of California

CA

Subrecipient Monitoring Reporting Procurement, Suspension & Debarment § 200.302 § 200.303 § 200.328 § 200.329

Reporting California Department of Social Services CDSS does not agree with this finding that the FFATA reporting deadline was not met for the subaward reporting for all 58 counties for the Foster Care grant. The FFY 2025 FFATA report was originally submitted on November 27, 2024, which met the fede...

Reporting California Department of Social Services CDSS does not agree with this finding that the FFATA reporting deadline was not met for the subaward reporting for all 58 counties for the Foster Care grant. The FFY 2025 FFATA report was originally submitted on November 27, 2024, which met the federal submission deadline of November 30, 2024. During this initial submission, however, data lines for two counties failed to upload into the legacy FSRS.gov system and required additional research. The corrected data was subsequently submitted on December 10, 2024. Since that time, FSRS.gov has migrated to SAM.gov, and the new system only displays the most recent submission date as the official record. It appears that SAM.gov does not retain or display the historical log of submissions FSRS.gov. As a result, the system reflects only the December 10 submission date, even though the original, timely submission occurred on November 27, 2024. CDSS is developing a Federal Reporting Dashboard to track all grants with FFATA reporting requirements, including due dates and completion status. Additionally, CDSS will designate a primary point and a backup person within the Federal Reporting Section to monitor all FFATA reporting deadlines. This designated staff member will issue 45 days advance notifications to the grant owner and reviewing manager, set calendar reminders for grant owners, and provide regular status updates to Accounting Management. To strengthen timely compliance, these reminders will also instruct grant owners to complete the FFATA submission 10 days before the federal deadline, ensuring sufficient time to resolve any errors that may occur during the upload process. Estimated Implementation Date: November 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

View Audit 408731

Finding 1226048 (2025-009)

Material Weakness 2025

State of California

CA

Allowable Costs / Cost Principles § 200.303 § 200.308 § 200.403

Period of Performance California Department of Public Health The California Department of Public Health (CDPH) agrees with this finding. CDPH is reviewing and updating existing processes and training materials to ensure expenditures are charged to the appropriate federal award and within the applica...

Period of Performance California Department of Public Health The California Department of Public Health (CDPH) agrees with this finding. CDPH is reviewing and updating existing processes and training materials to ensure expenditures are charged to the appropriate federal award and within the applicable period of performance. CDPH will coordinate with relevant staff in the Financial Management Division to strengthen grant monitoring during the award closeout process and will continue to review expenditures on an ongoing basis to prevent the misclassification of post-award costs. Estimated Implementation Date: June 2027 Contact: - Louise Karsten, Emergency Funding Coordination Branch Manager, Center for Preparedness and Response

View Audit 408731

Finding 1226037 (2025-006)

Material Weakness 2025

State of California

CA

Special Tests & Provisions Questioned Costs Subrecipient Monitoring § 200.303

Special Tests and Provisions Employment Development Department EDD has current policies, procedures, and training in place instructing employees to include applicable penalty amounts when establishing overpayments in the database. When the overpayment for the sample in question was established, the ...

Special Tests and Provisions Employment Development Department EDD has current policies, procedures, and training in place instructing employees to include applicable penalty amounts when establishing overpayments in the database. When the overpayment for the sample in question was established, the employee did not follow proper procedure to include the penalty. EDD accepts this oversight and is committed to reviewing its applicable policies and procedures to ensure they are clear, and the penalty requirements are emphasized. Regarding internal controls, EDD leverages a process known as the Field Office Basic Evaluation System (FOBES). This process includes a standardized form that is utilized by leadership to evaluate the quality of their employees’ work in a variety of processes, including overpayment processing. EDD continues to review and modernize the existing assessment form and FOBES process to ensure effectiveness and consistency while evaluating employee compliance with policies and procedures. EDD will enhance current procedures to outline the steps for reviewing claimant eligibility and applying disqualification penalties by: - Updating procedures in the various resources available for our determination false statement processes to include more comprehensive guidance. - Providing updated training for employees on any changes to procedures. Milestones: - Update UI Manuals by 8/14/2026. - Engage with UIB training team to update overpayment-related training and create a new refresher training by 8/14/2026. - Evaluate when a refresher training can be presented to determination trained employees by 8/14/2026. - Provide updated milestone to DOL by 9/30/2026. Estimated Implementation Date: September 2026 Contact: - Diane Underwood, Division Chief, Unemployment Insurance Branch

View Audit 408731

Finding 1226035 (2025-005)

Material Weakness 2025

State of California

CA

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.328 § 200.329

Reporting Employment Development Department Recognizing the finding does not include any questioned costs, EDD agrees that during the sampled time period it did not have a formal reconciliation process to ensure Form 9130 reports align with the general ledger. As a result, differences emerged betwee...

Reporting Employment Development Department Recognizing the finding does not include any questioned costs, EDD agrees that during the sampled time period it did not have a formal reconciliation process to ensure Form 9130 reports align with the general ledger. As a result, differences emerged between the amounts reported on the Form 9130 and those reflected in the Administrative Fund (0870) general ledger. Since then, EDD’s Fiscal Programs Division (FPD) formed a workgroup at the end of 2025 to identify key staff responsible for establishing a formal reconciliation process. This effort is documented in an artifact titled, General Ledger 9130 to SEFA Recon Procedure (Final)’. The workgroup consisted of representatives from the Budget and Forecasting Section and the Accounting Section and resulted in the creation of a draft reconciliation procedure. FPD assigned Accounting Section personnel to lead the overall process, including coordinating deadlines, reviewing completed reconciliations, and ensuring any issues are investigated and resolved. Budget and Forecasting Section staff are responsible for providing accurate and timely expenditure data, while the Accounting Section prepares the reconciliations and documents any variances. In addition, EDD provided initial training to staff to ensure a consistent understanding of the new procedures and responsibilities. In late May 2026, EDD began its first pilot testing of the new reconciliation procedure using data from the quarter ending March 2026. The pilot was successful, and EDD has finalized the reconciliation procedures and distributed them to all relevant staff. Estimated Implementation Date: Currently implemented Contact: - Diane Underwood, Division Chief, Unemployment Insurance Branch

View Audit 408731

Finding 1226033 (2025-004)

Material Weakness 2025

State of California

CA

Allowable Costs / Cost Principles Period of Performance § 200.303 § 200.308 § 200.403

Period of Performance Employment Development Department Employment Development Department (EDD) agrees that it did not have documented procedures or formal ongoing monitoring activities to adequately ensure that payroll charges to Federal awards fell within the authorized award dates before costs we...

Period of Performance Employment Development Department Employment Development Department (EDD) agrees that it did not have documented procedures or formal ongoing monitoring activities to adequately ensure that payroll charges to Federal awards fell within the authorized award dates before costs were charged to the grant. As a result, payroll costs were incurred outside of the approved period of performance and were not prevented or detected in a timely manner. EDD’s Unemployment Insurance Branch (UIB) established the procedures to be overseen by the UIB Budget Unit to ensure proper controls are in place moving forward and costs are appropriately charged to current and future grants. See artifacts titled ‘Project-Activity Code Establishment Procedure for DUA Revised 7.6.26’ and ‘UIAN DUA Template for Code Release Instructions’. To address the 25 instances where payroll hours were charged to a grant after the approved period of performance end date of May 22, 2025, the Department identified and removed those expenditures from the federal grant and reallocated them to an appropriate state funding source via ledger adjustments. Adjustments were processed during the month end closing process for May and June. As a result, all expenditures outside of the grant’s period of performance have been identified and appropriately removed from the federal grant. Estimated Implementation Date: Currently implemented Contact: - Diane Underwood, Division Chief, Unemployment Insurance Branch

View Audit 408731

Finding 1226030 (2025-002)

Material Weakness 2025

State of California

CA

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.302 § 200.303 § 200.328 § 200.329

Reporting California Department of Education Partially Concur. The Department agrees that timely submission of FFATA reports is an important requisite. However, the circumstances that triggered the late submission were created by the control agency shifting to a new system without ensuring it met ev...

Reporting California Department of Education Partially Concur. The Department agrees that timely submission of FFATA reports is an important requisite. However, the circumstances that triggered the late submission were created by the control agency shifting to a new system without ensuring it met everyone’s needs, not by a lack of Department staffing or resources. Nevertheless, to strengthen existing procedures, the Department will review processes and determine if contingency procedures are appropriate and feasible. Management will also continue to monitor federal system changes, document implementation challenges, and maintain communication with federal agencies to ensure awareness of external system limitations that could affect reporting timelines. The Department will continue to work with the U.S. General Services Administration on automated reporting solutions to mitigate any future late submittals and to ensure timely submission of all FFATA reports. Estimated Implementation Date: September 30, 2026 Contact: - Yiping Hu, Accounting Administrator, Fiscal and Administrative Services Division

View Audit 408731

Finding 1226003 (2025-003)

Material Weakness 2025

Union League Boys and Girls Clubs

IL

Allowable Costs / Cost Principles § 200.403

Planned Corrective Action: Management agrees with the finding regarding unallowable items that included human resources services claimed under professional development supplies and food costs claimed under instructional supplies. To address this deficiency, management has implemented the following c...

Planned Corrective Action: Management agrees with the finding regarding unallowable items that included human resources services claimed under professional development supplies and food costs claimed under instructional supplies. To address this deficiency, management has implemented the following corrective actions: • Ensure all allowable expenses are reviewed by the Senior Vice President prior to voucher submission under the grant terms and conditions • Establish a formal process to ensure all expenses are coded accurately These enhancements have been implemented and will be applied to strengthen internal controls. Contact person responsible for corrective action: Mary Ann Mahon-Huels, President & CEO Anticipated Completion Date: July 31, 2026

View Audit 408681

Finding 1225992 (2025-004)

Material Weakness 2025

City of Osseo

WI

Internal Control / Segregation of Duties Questioned Costs Procurement, Suspension & Debarment

To Federal Awarding Agency The City of Osseo, Wisconsin respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 1, 2025 - December 31, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings ...

To Federal Awarding Agency The City of Osseo, Wisconsin respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 1, 2025 - December 31, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESSES 2025-001 Limited Segregation of Duties Recommendation: The City should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to work to achieve segregation of duties whenever cost effective. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. 2025-002 Material Audit Adjustments Recommendation: The City should continue to evaluate its internal control processes to determine if additional internal control procedures should be implemented to ensure that accounts are adjusted to their appropriate year end balances in accordance with Generally Accepted Accounting Principles (GAAP). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to rely upon the audit firm to propose audit adjustments necessary to adjust accounts in accordance with GAAP. Management will review and approve these entries prior to recording them. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. 2025-003 Annual Financial Reporting under Generally Accepted Accounting Principles (GAAP) Recommendation: The City should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to rely upon the audit firm to prepare the annual financial statements and related footnote disclosures in accordance with GAAP. Management will review, approve and accept responsibility for these financial statements and related footnote disclosures prior to issuance. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. 2025-004 Procurement Policy Recommendation: The City should be familiar with compliance requirements outlined by Uniform Guidance and design controls to ensure procurement requirements are met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will review procurement policies and procedures and adopt necessary changes to meet the requirements of Uniform Guidance. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. Any questions regarding these corrective action plans can be directed to Stephanie Nelson, Clerk/Treasurer, 13712 8th Street, Osseo, WI 54758 or 715-597-2207.

View Audit 408648

Finding 1225979 (2025-003)

Material Weakness 2025

Chicago Survivors, Inc.

IL

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Questioned Costs § 200.203 § 200.430

Finding Number: 2025-003 Name of Responsible Party: JaShawn Hill, Executive Director Corrective Action: Management acknowledges and agrees with the finding. This issue resulted from a reduction in force during which various employees’ final workday coincided with the end of a payroll period. While e...

Finding Number: 2025-003 Name of Responsible Party: JaShawn Hill, Executive Director Corrective Action: Management acknowledges and agrees with the finding. This issue resulted from a reduction in force during which various employees’ final workday coincided with the end of a payroll period. While employees typically have around one week to submit their timesheets after the end of a pay period, the employees that were let go from the organization did not finalize their information before leaving. In the future, management will ensure that all timesheets are submitted on the final day of employment as a part of the last day procedures. Anticipated Completion Date: July 31, 2026

View Audit 408618

Finding 1225978 (2025-002)

Material Weakness 2025

Chicago Survivors, Inc.

IL

Allowable Costs / Cost Principles Questioned Costs § 200.303

Finding Number: 2025-001 & 2025-002 Name of Responsible Party: JaShawn Hill, Executive Director Corrective Action: Management acknowledges and agrees with the finding. The issue resulted in a variety of issues: 1) invoices for recurring transactions set up on automatic payment were not downloaded an...

Finding Number: 2025-001 & 2025-002 Name of Responsible Party: JaShawn Hill, Executive Director Corrective Action: Management acknowledges and agrees with the finding. The issue resulted in a variety of issues: 1) invoices for recurring transactions set up on automatic payment were not downloaded and approved by the appropriate party, resulting in a lack of adequate documentation, 2) a former employee was granted access to make ACH payments directly from the organization’s bank account, allowing payments to be made without proper oversight or approval, and 3) access to the organization’s Amazon account was limited to one employee, allowing inappropriate purchases to be made without proper oversight or approval. To ensure that proper processes and documentation is followed going forward, management will: 1) provide adequate training to the individual tasked with collecting invoices and approval for all transactions, including recurring transactions, and will perform a periodic review of various transactions to ensure approvals and documentation is obtained; 2) no longer allow any employee to make ACH payments directly from the organization’s bank account, and instead will implement a bill payment software that ensures that all ACH payments must be approved by an appropriate party, other than the individual initiating payment, before payment can be made; and 3) ensure that multiple parties have access to the organization’s Amazon account, and that the transactions and receipts are reviewed and approved as dictated by the organization’s existing policies and procedures (and are subject to the periodic review noted in item 1 above). Anticipated Completion Date: July 31, 2026

View Audit 408618

Finding 1225872 (2025-002)

Material Weakness 2025

Argus Community, INC

NY

Allowable Costs / Cost Principles § 200.430

Corrective Action Planned: In July 2023, the Organization implemented ADP Work Force Now to systematically capture hours worked, the supervisor's approval and audit trail to reflect the work performed. In May 2026, the Organization hired a subcontractor, Dapt to synchronize the employee hours worked...

Corrective Action Planned: In July 2023, the Organization implemented ADP Work Force Now to systematically capture hours worked, the supervisor's approval and audit trail to reflect the work performed. In May 2026, the Organization hired a subcontractor, Dapt to synchronize the employee hours worked on their time sheets and allocated into the cost centers/programs they worked on. The new timesheet will also reflect the employee and supervisor’s approval, as completed in ADP. Testing begins with the months of May and June 2026. Name(s) of Contact Person(s) Responsible for Corrective Action: Betsey Knapp, Director of Budgets and Contracts; Alvin Sinckler, Chief Financial Officer Anticipated Completion Date: June 30, 2026.

View Audit 408570

Finding 1225745 (2025-002)

Material Weakness 2025

City of East Chicago

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

CORRECTIVE ACTION PLAN FINDING 2025-002 Finding Subject: COVID-19- Coronavirus State and Local Fiscal Recovery Funds Contact Person Responsible for Corrective Action: Valeriano F. Gomez Contact Phone Number and Email Address: 219-391-8220 Views of Responsible Officials: Option 1: “We concur with the...

CORRECTIVE ACTION PLAN FINDING 2025-002 Finding Subject: COVID-19- Coronavirus State and Local Fiscal Recovery Funds Contact Person Responsible for Corrective Action: Valeriano F. Gomez Contact Phone Number and Email Address: 219-391-8220 Views of Responsible Officials: Option 1: “We concur with the finding.” Description of Corrective Action Plan: Previous corrective action read as follows: To ensure proper implementation of the policies and procedures in place related to SLFRF reporting, in future, no submittal of reports will be approved without the City Controller and a Senior Staff Accountant reviewing and approving the P & E reports…… issue arose when City Departments responsive for entering data in P & E reports and Staff Accountant documentation differed , adding to issue both groups were not together in same room to assist each other with reporting . Corrective Action Plan: 1. All future SLFRF Quarterly reports shall require advance meetings before the data entering day; to ensure correct reporting. Meetings shall include all personnel reviewing and entering information (City department personnel and Controllers office personnel, to include two from the Controller’s Office; Controller, or Deputy City Controller and Senior City Accountant. 2. These Staff meeting shall address any differences in reporting documentation, and prepare for any editing and revising data to correct issues from previous P & E reporting, in next available report (Sec. V. Editing and Revising Data P & E Report User Guide) 3. No data shall be entered / submitted on entry day for future Quarterly P & E reports without Controller personnel present and having reviewed and confirmed data. Anticipated Completion Date: Controllers Office and City Departments involved in reporting are presently working to address and correct issues in past reporting, completion is anticipated when upcoming 2nd Quarterly Report for 2026 is opened and issues are addressed.

View Audit 408547

Finding 1225617 (2025-004)

Material Weakness 2025

White Bird Clinic

OR

Questioned Costs Allowable Costs / Cost Principles Material Weakness

2025-004 Reporting Corrective action planned: WBC Management agrees with this finding. WBC had to switch EHRs during 2023 and 2024, which required our Dental, Medical, and Behavioral Health programs to use their own separate EHR to alleviate critical functional and capacity deficiencies that were ca...

2025-004 Reporting Corrective action planned: WBC Management agrees with this finding. WBC had to switch EHRs during 2023 and 2024, which required our Dental, Medical, and Behavioral Health programs to use their own separate EHR to alleviate critical functional and capacity deficiencies that were caused by our previous EHR. This resulted in significantly more complexity when calculating our UDS numbers. The process involved combining all of our patient demographics and accounting for overlapping (duplicate encounters) by hand. This was made all the more difficult by name misspellings and other errors during data entry. Relating to our prior year finding, WBC had contracted with a third party to implement a custom population health tool to automate our UDS reporting. The contractor did not meet specified deliverable requirements, so reporting was again done manually, which resulted in the errors. White Bird Clinic has been working to evaluate population health tools to aggregate patient data to provide more accurate UDS and clinical quality reporting. In 2026, through the help of our HCCN, Health Efficient, we contracted with Relevant Health to implement their population health tool to streamline and accurately report our population health and our UDS reporting. The Relevant platform is in use by over 100 FQHCs across the country. This tool will aggregate patient data from each EHR, account for duplicates, and accurately report combined UDS demographics from all our systems. They are very experienced with UDS and UDS+ reporting, so the system is designed to seamlessly provide accurate and consistent UDS metrics and address duplicate clients from multiple EHRs. Anticipated completion date: 2026, July Contact person responsible for corrective action: Tyler Stewart, Director of IT

View Audit 408513

Finding 1225616 (2025-003)

Material Weakness 2025

White Bird Clinic

OR

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness § 200.303 § 200.430

2025-003 Internal Control Over Payroll Charged to Federal Awards Corrective action planned: WBC Management agrees with this finding. With the onboarding of a new Director of Human Resources, best practices around payroll documentation have been implemented. This includes individual forms for all wag...

2025-003 Internal Control Over Payroll Charged to Federal Awards Corrective action planned: WBC Management agrees with this finding. With the onboarding of a new Director of Human Resources, best practices around payroll documentation have been implemented. This includes individual forms for all wage changes per employee. Approval is documented with Supervisors’ signatures on these forms. The wage form is used to update the payroll system and a final accuracy review is performed by the HR Director to verify the updated rated matches the approved change form. The approved wage forms are securely stored in the Human Resources files. Anticipated completion date: 2026, July Contact person responsible for corrective action: Jonathan Gunther, Director of Finance

View Audit 408513

Finding 1225606 (2025-003)

Material Weakness 2025

Madison County District School Board

FL

Questioned Costs Allowable Costs / Cost Principles

Planned Corrective Action: The District recognizes and understands the incorrect calculation of the Federal indirect cost rate applicable to the 2024-25 fiscal year and has prepared subsequent indirect rate calculations for the fiscal years 2025-26 and 2026-27 that included other expenditures (i.e. ...

Planned Corrective Action: The District recognizes and understands the incorrect calculation of the Federal indirect cost rate applicable to the 2024-25 fiscal year and has prepared subsequent indirect rate calculations for the fiscal years 2025-26 and 2026-27 that included other expenditures (i.e. charter school expenditure) that were incorrectly omitted in the rate for the 2024-25 fiscal year. Anticipated completion date: July 1, 2025 Responsible Contact Person: Walter Copeland, CFO

View Audit 408491

Finding 1225594 (2025-003)

Material Weakness 2025

Metcalfe County Fiscal Court

KY

Internal Control / Segregation of Duties Special Tests & Provisions Questioned Costs § 200.303

The Metcalfe County Fiscal Court will establish internal controls over the federal expenditure process when a third-party entity is involved to ensure all compliance and recording requirements are met. Although the Metcalfe County Fiscal Court was in compliance with federal requirements when tested ...

The Metcalfe County Fiscal Court will establish internal controls over the federal expenditure process when a third-party entity is involved to ensure all compliance and recording requirements are met. Although the Metcalfe County Fiscal Court was in compliance with federal requirements when tested by a single audit, having these procedures in place will ensure that all future federal expenditures will remain in compliance.

View Audit 408468

Finding 1225580 (2025-001)

Material Weakness 2025

Martha's Vineyard Regional High School District

MA

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

Time & Effort Documentation. Due to the timing of the retirement of the SPED Administrative Assistant who was responsible for documenting the time & effort of staff paid for from the SPED 240 Grant, the necessary paperwork/documentation was not collected as required. The Corrective Action Plan will ...

Time & Effort Documentation. Due to the timing of the retirement of the SPED Administrative Assistant who was responsible for documenting the time & effort of staff paid for from the SPED 240 Grant, the necessary paperwork/documentation was not collected as required. The Corrective Action Plan will consist of training the new SPED Administrative Assistant on this requirement, and to have multiple check-ins during the year with the Director of Support Services and the SPED Administrative Assistant on this requirement. Lastly, we are taking the additional step to add language into each annual payroll contract of staff funded from the SPED 240 Grant, that they are funded, and to what proportion, by that grant. This will be overseen by the School Business Administrator in concert with the Director of Support Services, and will be effective for the FY26 Single Audit cycle.

View Audit 408454

Finding 1225567 (2025-001)

Material Weakness 2025

Governor's Partnership to Protect Connecticut's Workforce, Inc.

CT

Allowable Costs / Cost Principles

The Partnership will implement a formal time and effort reporting process with in its current payroll platform to ensure payroll costs charged to federal awards are supported by after-the-fact records that accurately reflect work performed. This will include standardized timesheets or system-based t...

The Partnership will implement a formal time and effort reporting process with in its current payroll platform to ensure payroll costs charged to federal awards are supported by after-the-fact records that accurately reflect work performed. This will include standardized timesheets or system-based tracking, supervisory review and approval, and periodic reconciliations between payroll allocations and actual activity. Adjustments will be recorded timely to ensure costs are allowable, properly allocated, and supported in accordance with Uniform Guidance.

View Audit 408447

Finding 1225549 (2025-002)

Material Weakness 2025

Bang on A Can

NY

Allowable Costs / Cost Principles Cash Management Period of Performance § 200.300 § 200.400

Bang on a Can, Inc. will adopt written policies, procedures and standards of conduct as required by 2 CFR 200, Subparts D and E.

View Audit 408442

Finding 1225545 (2025-006)

Material Weakness 2025

Muskegon Heights Public School Academy System

MI

Allowable Costs / Cost Principles Questioned Costs

2025-006 - Documentation and Internal Controls over Disbursements (repeat finding) Auditor Description of Condition and Effect: Evidence of an independent review was not documented on our disbursements selected for testing. As a result of the condition, the Academy is exposed to an increased risk of...

2025-006 - Documentation and Internal Controls over Disbursements (repeat finding) Auditor Description of Condition and Effect: Evidence of an independent review was not documented on our disbursements selected for testing. As a result of the condition, the Academy is exposed to an increased risk of misappropriation, misstated financial statements, or noncompliance. The Academy is at increased risk of unallowable costs being charged to federal programs without being detected by its internal controls. Auditor Recommendation: We recommend that the Academy strengthen its accounts payable process by implementing a formal approval procedure to ensure all invoices are reviewed and authorized by personnel with direct knowledge of the underlying transaction prior to payment. This process should include the following elements: Designated Approvers: Identify specific individuals or roles responsible for reviewing and approving invoices for each department or type of transaction. Documented Approval: Require that each invoice include documented evidence of approval (e.g., signatures or electronic approval) before it is processed for payment. Segregation of Duties: Ensure that the approver is independent of those initiating or processing payments to maintain proper internal controls. Periodic Review: Conduct periodic reviews of accounts payable records to verify compliance with approval procedures and identify any unauthorized payments. Corrective Action: 1. Designate Official Approvers: We will identify specific staff members or roles who have direct knowledge of certain transactions to be the only ones authorized to approve those invoices. 2. Require Proof of Approval: We will implement a strict rule that no invoice is processed for payment unless it has clear, documented evidence of approval, such as a physical signature or a verified electronic sign-off. 3. Maintain Independence in Payments: We will ensure the person approving an invoice is not the individual processing the actual payment. 4. Perform Regular Spot Checks: I will conduct periodic reviews of our accounts payable records to make sure our approval procedures are being followed and to catch any unauthorized payments early. 5. Focus on Federal Compliance: We will meet monthly to monitor disbursements charged to federal programs to ensure all costs are allowable and properly documented, reducing our risk of noncompliance. Responsible Person: LaKisha Loudermill, Superintendent Anticipated Completion Date: June 30, 2026

View Audit 408425

Finding 1225517 (2025-001)

Material Weakness 2025

Garnet Valley School District

PA

Allowable Costs / Cost Principles Significant Deficiency Matching / Level of Effort / Earmarking

The District will implement formal review procedures to verify compliance with maintenance of effort requirements during the budgeting process, including verification of required per-pupil thresholds prior to approval. Documentation of these compliance checks will be prepared, reviewed, and retained...

The District will implement formal review procedures to verify compliance with maintenance of effort requirements during the budgeting process, including verification of required per-pupil thresholds prior to approval. Documentation of these compliance checks will be prepared, reviewed, and retained as part of the budget workpapers. In addition, business office and program staff involved in the development of IDEA budgets will receive training on federal eligibility requirements to reduce the risk of recurrence.

View Audit 408397

Corrective Action Plans

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