Corrective Action Plans

Finding 1213949 (2025-011)

Material Weakness 2025

Creek County

OK

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking § 200.303 § 200.403

Creek County will work with all offices making sure that a proper invoice is attached on all purchase orders. Educating Offices that there is a difference in a quote verses an invoice. The County Clerk will make sure that there are multiple eyes on the purchase orders to ensure that this is caught b...

Creek County will work with all offices making sure that a proper invoice is attached on all purchase orders. Educating Offices that there is a difference in a quote verses an invoice. The County Clerk will make sure that there are multiple eyes on the purchase orders to ensure that this is caught before payment is issued.

View Audit 400798

Finding 1213864 (2025-006)

Material Weakness 2025

TOWN OF SPRUCE PINE

NC

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring § 200.302 § 200.403

The Town will implement written procedures requiring the development and maintenance of project‑specific budgets for all federal awards, including FEMA emergency response and recovery projects. Project budgets will be prepared in accordance with approved scopes of work and used to monitor expenditur...

The Town will implement written procedures requiring the development and maintenance of project‑specific budgets for all federal awards, including FEMA emergency response and recovery projects. Project budgets will be prepared in accordance with approved scopes of work and used to monitor expenditures throughout the life of the award. The Town will provide training to applicable staff on federal grant budgeting requirements and designate responsibility for budget preparation and monitoring.

View Audit 400700

Finding 1213721 (2025-006)

Material Weakness 2025

City of Lodi

CA

Allowable Costs / Cost Principles Material Weakness Reporting

Management agrees and acknowledges the delay in issuing the financial statements. Contributing factors included staffing transitions, adjustments to policies and financial software, and the need for additional time to complete year end reconciliations. The City has since implemented process improvem...

Management agrees and acknowledges the delay in issuing the financial statements. Contributing factors included staffing transitions, adjustments to policies and financial software, and the need for additional time to complete year end reconciliations. The City has since implemented process improvements, earlier preparation of key schedules, and expanded cross training among staff. These actions are expected to support timely completion of future financial reports.

View Audit 400610

Finding 1213704 (2025-001)

Material Weakness 2025

Colorado Legal Services, INC

CO

Allowable Costs / Cost Principles § 200.403 § 200.430

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Aging Cluster – Special Programs for the Aging, Title III, Part B – Assistance Listing No. 93.044 Recommendation: We recommend that the Organization consider updating its cost allocation methodology and process to reduce the freque...

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Aging Cluster – Special Programs for the Aging, Title III, Part B – Assistance Listing No. 93.044 Recommendation: We recommend that the Organization consider updating its cost allocation methodology and process to reduce the frequency of manual adjustments based on review of individual time records and expense data and maximize the use of automated allocations that are calculated in a consistent manner that ensure costs are applied uniformly to respective benefited activities, and that are reflective on employees’ time and effort records. We also recommend that the Organization maintain contemporaneous documentation supporting all cost allocations. Lastly, the Organization could consider removing LSC from the general fund into its own fund, and using fringe benefit rate and indirect cost rate allocation methods to simplify its cost allocation process. Explanation of Disagreement With Audit Finding: Management partially agrees with this finding. First, 45 CFR Part 1635 codifies the timekeeping requirement. CLS keeps track of every case and time dedicated by staff in strict compliance with this requirement. Manual adjustments primarily result from planned internal reconciliations and reviews designed to ensure the accuracy of CLS allocations. These reconciliations are conducted on a monthly basis and form an integral part of the Organization’s internal control framework. Action Taken in Response to Finding: Additionally, with respect to the Native American grant transactions, CLS implemented the necessary correction to the referenced percentage effective beginning in 2026. Name of the Contact Person Responsible for Corrective Action: Silvia Zelaya, Finance Director Planned Completion Date for Corrective Action Plan: January 2027

View Audit 400608

Finding 1213649 (2025-002)

Material Weakness 2025

City of Lynwood

CA

Allowable Costs / Cost Principles § 200.414

The City will implement a policy directing City staff that, if allowed, grant applications should include the option to charge indirect costs for the execution of the grant work. Upon grant application submissions, the department submitting the grant will coordinate with the Senior Finance Analyst t...

The City will implement a policy directing City staff that, if allowed, grant applications should include the option to charge indirect costs for the execution of the grant work. Upon grant application submissions, the department submitting the grant will coordinate with the Senior Finance Analyst to provide indirect cost rates and/or charges. As it relates to CDBG and HOME Program Grants, the Finance and Administration Department, in conjunction with the Community Development Director, will conduct a year-end review to ensure allowable indirect costs are appropriately charged. Personnel Responsible for Implementation: Meredith Elguira, Carol Molina, Ralston Turner Position of Responsible Personnel: Interim Community Development Director, Interim Finance and Administration Director, Senior Finance Analyst Expected Date of Implementation: April 30, 2026

View Audit 400567

Finding 1213611 (2025-002)

Material Weakness 2025

YMCA of Greater Boston

MA

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

Management will update its procurement policies and procedures to require formal evidence that suspension and debarment checks are completed prior to entering into contracts. This will include requiring staff to sign/initial, and date SAM.gov verification screenshots or reports, or alternatively, ob...

Management will update its procurement policies and procedures to require formal evidence that suspension and debarment checks are completed prior to entering into contracts. This will include requiring staff to sign/initial, and date SAM.gov verification screenshots or reports, or alternatively, obtain vendor certifications confirming their status. Training will be provided for relevant personnel to ensure consistent implementation of the revised procedures.

View Audit 400545

Finding 1213496 (2025-002)

Material Weakness 2025

Detroit Wayne Integrated Health Network

MI

Allowable Costs / Cost Principles Questioned Costs § 200.303 § 200.414

Finding Number: 2025-002 Condition: DWIHN’s internal controls were not sufficiently designed and/or operating effectively to prevent the submission of unallowable costs for reimbursement under the federal award. Planned Corrective Action: Program and finance staff responsible for the approving and p...

Finding Number: 2025-002 Condition: DWIHN’s internal controls were not sufficiently designed and/or operating effectively to prevent the submission of unallowable costs for reimbursement under the federal award. Planned Corrective Action: Program and finance staff responsible for the approving and processing of FSR’s have been informed of the need to review FSR’s in greater detail before they are submitted, approved, and payment occurs. A more detailed review of the FSR’s and adherence to established policies and procedures will eliminate the risk of errors and omissions. Contact person responsible for corrective action: Vice President of Finance and Director of Grants and Community Engagement Anticipated Completion Date: August 7, 2025

View Audit 400448

Finding 1213098 (2025-016)

Material Weakness 2025

The Howard University

DC

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Questioned Costs § 200.302

FINDING 2025-016 Name of Responsible Individual: Director of Post Award Compliance and Training Christina Flood, Budget Analyst Corrective Action: Monthly Settlement Reports are used to reconcile actual expenses. An outdated spreadsheet was previously used to convert travel expenses, which resulted ...

FINDING 2025-016 Name of Responsible Individual: Director of Post Award Compliance and Training Christina Flood, Budget Analyst Corrective Action: Monthly Settlement Reports are used to reconcile actual expenses. An outdated spreadsheet was previously used to convert travel expenses, which resulted in incorrect exchange rate calculations. The team has implemented an updated conversion process. Going forward, the Sponsored Program Office Team will review and approve the exchange rates to ensure they are reasonable, accurate, and applied consistently. Anticipated Completion Date: June 30, 2026

View Audit 400430

Finding 1212721 (2025-014)

Material Weakness 2025

The Howard University

DC

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting § 200.430

FINDING 2025-014 Name of Responsible Individual: Assistant Vice President for Post Award Corrective Action: The University initiated the Effort Certification process to capture the full calendar year 2025 in April 2026. This represents a one-time extended certification period designed to include pre...

FINDING 2025-014 Name of Responsible Individual: Assistant Vice President for Post Award Corrective Action: The University initiated the Effort Certification process to capture the full calendar year 2025 in April 2026. This represents a one-time extended certification period designed to include previously uncertified periods that had concluded, specifically the second half of FY25 (January–June 2025) and the first half of FY26 (July–December 2025). In May 2025, the non-accounting functions of Grants and Contracts Accounting at Howard University were transitioned to the Office of Research, Sponsored Programs Office. During this organizational transition, the University prioritized the completion and accuracy of all costing allocations to ensure payroll data was complete and reliable for effort certification purposes. This period was also utilized to identify and resolve any backlog of costing allocations and award charges and stabilize the Office of Research. Addressing these items ensured that effort reflected complete and accurate payroll activity, thereby enabling Principal Investigators to appropriately review and certify their effort. The Sponsored Programs Office (SPO) now leads post-award financial oversight and collaborates with Human Resources (HR) and Finance to ensure designated personnel are identified and granted system access to enter costing allocations and labor cost transfers in Workday. In addition, in response to the auditor’s recommendation to enhance internal controls and ensure timely monitoring of effort reporting, Howard University has implemented the following corrective actions: Hired Dedicated Departmental Support – Six College Research Administrators (CRAs) and an Associate Director of CRA’s were hired to support high-volume research colleges. The CRAs ensure timely and accurate labor cost transfers, effort certification, and costing allocation entries during award setup and throughout the award lifecycle. Enhanced Effort Reporting Process – SPO will lead improvements to the effort certification process, including: • Advance communication to PIs, CRAs, and Deans outlining certification deadlines • Clear guidance on when labor cost transfers may occur outside the certification cycle • Reinforcement that all effort changes must be reflected in the effort system to ensure alignment with payroll. • Training – Targeted training will be delivered to Principal Investigators, CRAs, and other research stakeholders to support consistent application of policies and procedures. Monitoring and Oversight – Monthly and quarterly reconciliation reports will be developed to track and validate timely and accurate payroll allocations for research personnel. Anticipated Completion Date: August 30, 2026

View Audit 400430

Finding 1211188 (2025-002)

Material Weakness 2025

Syntiro

ME

Reporting Questioned Costs Allowable Costs / Cost Principles § 200.302 § 200.403 § 200.405

We agree with the finding and we will be reviewing and implementing the recommendations accordingly. We are committed to ensuring no duplication of costs across reporting periods and compliance with allocability requirements under Uniform Guidance on a prospective basis. This corrective action plan ...

We agree with the finding and we will be reviewing and implementing the recommendations accordingly. We are committed to ensuring no duplication of costs across reporting periods and compliance with allocability requirements under Uniform Guidance on a prospective basis. This corrective action plan will be implemented by June 30, 2026.

View Audit 400399

Finding 1211187 (2025-001)

Material Weakness 2025

Syntiro

ME

Allowable Costs / Cost Principles Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303 § 200.403 § 200.414

We agree with the finding and will review and implement the recommendations accordingly. We are committed to ensuring proper application of indirect costs, avoiding duplication of costs across reporting periods, and maintaining compliance with allocability requirements under Uniform Guidance on a pr...

We agree with the finding and will review and implement the recommendations accordingly. We are committed to ensuring proper application of indirect costs, avoiding duplication of costs across reporting periods, and maintaining compliance with allocability requirements under Uniform Guidance on a prospective basis. This corrective action plan will be implemented by June 30, 2026.

View Audit 400399

Finding 1211184 (2025-002)

Material Weakness 2025

Bridge House and Subsidiaries

CO

Questioned Costs Allowable Costs / Cost Principles § 200.303

As of March 2026, management has implemented controls that properly support the distribution of personnel charges. In addition, documentation is being obtained and retained to substantiate these charges and a new procedure of documenting the review process to help ensure these errors are corrected b...

As of March 2026, management has implemented controls that properly support the distribution of personnel charges. In addition, documentation is being obtained and retained to substantiate these charges and a new procedure of documenting the review process to help ensure these errors are corrected before submission to the grantors has been implemented.

View Audit 400385

Finding 1211099 (2025-002)

Material Weakness 2025

Aberdeen School District No. 5

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Finding ref number: 2025-002 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort requirements. Name, address, and telephone of District contact person: Elyssa Louderback, Executive Director of Business & Operations, 216 North G Street, Aberde...

Finding ref number: 2025-002 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort requirements. Name, address, and telephone of District contact person: Elyssa Louderback, Executive Director of Business & Operations, 216 North G Street, Aberdeen, WA. 98520. (360) 538-2007 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for non-concurrence). The district will make sure all staff are listed on the Semi-Annual Certifications. Staff with braided funding will have a PAR with monthly verifications. Anticipated date to complete the corrective action: February 1, 2026

View Audit 400341

Finding 1211090 (2025-002)

Material Weakness 2025

Jewish Family Service of Dallas, Inc.

TX

Allowable Costs / Cost Principles Material Weakness

Finding 2025-002: Allowable Costs and Activities – Material Weakness in Internal Controls over Compliance Management Response: Management acknowledges the finding and agrees that improvements are necessary in the design and execution of internal controls related to allowable costs and activities for...

Finding 2025-002: Allowable Costs and Activities – Material Weakness in Internal Controls over Compliance Management Response: Management acknowledges the finding and agrees that improvements are necessary in the design and execution of internal controls related to allowable costs and activities for federal programs. The audit identified inconsistencies in how grant expenditures were reviewed, approved, and supported, as well as gaps in ensuring costs charged to grants were fully aligned with applicable requirements. This condition arose during a period of organizational transition, including changes in financial leadership, combined with increased volume and complexity of federal funding. These factors contributed to inconsistencies in control execution, documentation, and oversight. To address this finding, management is implementing the following corrective actions: • Enhancing policies and procedures governing allowable costs to ensure alignment with federal grant requirements • Strengthening pre- and post-expenditure review processes to verify that all costs charged to grants are allowable, properly supported, and accurately recorded • Implementing formal, documented reconciliation procedures for grant expenditures on a monthly basis • Establishing secondary review controls involving both the Controller and CFO to ensure compliance and accuracy • Providing targeted training to program and finance staff on allowable cost principles and grant compliance requirements • Improving documentation standards to ensure all approvals and supporting evidence are complete and audit-ready. Responsible party: Brenda Colon, CFO Expected Completion Date: October 2026.

View Audit 400338

Finding 1211089 (2025-001)

Material Weakness 2025

Jewish Family Service of Dallas, Inc.

TX

Allowable Costs / Cost Principles Cash Management Material Weakness

Finding 2025-001: Allowable Costs and Activities – Material Weakness in Internal Controls over Compliance Management Response: Management acknowledges the finding and agrees that improvements are required in internal controls over compliance related to allowable costs and activities. This condition ...

Finding 2025-001: Allowable Costs and Activities – Material Weakness in Internal Controls over Compliance Management Response: Management acknowledges the finding and agrees that improvements are required in internal controls over compliance related to allowable costs and activities. This condition arose during a period of organizational transition and increased complexity in funding sources and compliance requirements, which impacted consistency in control execution. Under the direction of the CFO, the organization is implementing the following corrective actions for the upcoming fiscal year: • Strengthening review and approval processes over grant expenditures and payroll allocations • Implementing formal, documented monthly reconciliations for all grant-related accounts • Establishing secondary review controls between the Controller and Accounting Clerk to ensure accuracy and compliance • Providing targeted training under the direction of the CFO for staff involved in financial reporting and grant compliance • Enhancing documentation standards to ensure all control activities are properly evidenced and audit-ready The organization has also reinforced financial leadership capacity to ensure appropriate oversight, adherence to GAAP, and alignment with federal compliance requirements. Responsible party: Brenda Colon, CFO Expected Completion Date: October 2026.

View Audit 400338

Finding 1211014 (2025-002)

Material Weakness 2025

YWCA West Central Michigan

MI

Allowable Costs / Cost Principles § 200.405

Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO. Implemented for the most part in FY2025 but discovered that we had not made corrections to the entire process of allocations, ha...

Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO. Implemented for the most part in FY2025 but discovered that we had not made corrections to the entire process of allocations, have tightened this up in FY2026.

View Audit 400298

Finding 1211010 (2025-001)

Material Weakness 2025

YWCA West Central Michigan

MI

Period of Performance Questioned Costs Allowable Costs / Cost Principles § 200.1

The YWCA has implemented (January 2025) the following changes in its accounting procedures. 1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the i...

The YWCA has implemented (January 2025) the following changes in its accounting procedures. 1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. 2. The CFO will review the month, and year noted by the Staff Accountant prior to entry into accounts payable.

View Audit 400298

Finding 1210938 (2025-002)

Material Weakness 2025

Amityville Union Free School District

NY

Allowable Costs / Cost Principles § 200.430

2025-002. Payroll (Allowable Costs/Cost Principles) United States Department of Education, Passed-through New York State Department of Education: Special Education Cluster: Special Education Grants to States: IDEA, Part B ALN: 84.027 Pass-through Entity Number: 0032-25-0875 Condition: One instance w...

2025-002. Payroll (Allowable Costs/Cost Principles) United States Department of Education, Passed-through New York State Department of Education: Special Education Cluster: Special Education Grants to States: IDEA, Part B ALN: 84.027 Pass-through Entity Number: 0032-25-0875 Condition: One instance within the audit sample where the personnel activity report (PAR) supporting the allocation of payroll costs to the federal award was not maintained for an employee. The District did not have procedures in place to ensure signed PARs are obtained from departing employees before they leave employment, or have an immediate supervisor with knowledge of the employee’s work certify the PAR as an alternative. Planned Corrective Action: The District will change the procedures for obtaining signed personnel activity reports (PARs) from employees whose salaries are 100% charged to one federal grant program. The District will no longer utilize semi-annual PARs for employees who are 100% charged to one federal grant program; going forward, all employees whose wages and salaries are partially or fully allocated to one or multiple federal grant programs will be required to sign monthly personnel activity reports. Responsible Contact Person: Mr. Joseph C. Dragone Interim Assistant Superintendent for Finance and Operations 150 Park Avenue Amityville, NY 11701 Phone: (631) 565-6015 Email: jdragone@amityvilleufsd.org Anticipated Completion Date: June 30, 2026.

View Audit 400280

Finding 1210936 (2025-002)

Material Weakness 2025

The Wallace Medical Concern

OR

Allowable Costs / Cost Principles

Health Center Program Cluster, Assistance Listings 93.224, 93.527 Allowable Costs Recommendation: Wallace should implement controls to ensure payroll for salaried employees hired mid-pay period is appropriately prorated based on hire date prior to charging payroll costs to the Health Center Program ...

Health Center Program Cluster, Assistance Listings 93.224, 93.527 Allowable Costs Recommendation: Wallace should implement controls to ensure payroll for salaried employees hired mid-pay period is appropriately prorated based on hire date prior to charging payroll costs to the Health Center Program Cluster. Management should also establish a documented review process to identify and correct payroll adjustments before payroll costs are charged to federal awards. Planned Corrective Action: Management agrees with the finding. Management will implement controls to ensure payroll for salaried employees hired mid-pay period is appropriately prorated prior to charging payroll costs to the Health Center Program Cluster. Management will also establish a documented review process to identify and correct payroll adjustments before payroll costs are charged to federal awards. These corrective actions are intended to address the allowability of payroll costs charged to the program, as identified in this finding. Contact Person Responsible for Corrective Action: Iris Martin, Chief People and Culture Officer Anticipated Completion Date: June 30, 2026

View Audit 400278

Finding 1210921 (2025-004)

Material Weakness 2025

Family Guidance Center of Alabama, Inc.

AL

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Corrective Action Plan: A revised plan has been developed, and additional standard operating procedures (SOPs) have been implemented to ensure processes are accurate, transparent, and consistently applied. These measures have been established to prevent over-reimbursement and strengthen internal con...

Corrective Action Plan: A revised plan has been developed, and additional standard operating procedures (SOPs) have been implemented to ensure processes are accurate, transparent, and consistently applied. These measures have been established to prevent over-reimbursement and strengthen internal controls over the grant billing process. Management is enhancing segregation of duties, increasing oversight, and monitoring activities, and providing ongoing training to ensure compliance and consistent application of established procedures. Additionally, the guarantor will be notified of the identified discrepancy, and any over-reimbursed funds are in the process of being returned. Individual(s) Responsible: Yolanda Adams Completion Date: Plan has been implemented as of date of audit submission.

View Audit 400248

Finding 1210876 (2025-001)

Material Weakness 2025

Florida School Nutrition Association, Inc.

FL

Subrecipient Monitoring Allowable Costs / Cost Principles Questioned Costs § 200.303 § 200.401

The Florida School Nutrition Association, Inc. (FSNA) acknowledges the audit finding regarding the misalignment between the pass-through entity’s grant agreement and the OMB Compliance Supplement for ALN 10.185. While the Association operated in accordance with the terms of the executed agreement wi...

The Florida School Nutrition Association, Inc. (FSNA) acknowledges the audit finding regarding the misalignment between the pass-through entity’s grant agreement and the OMB Compliance Supplement for ALN 10.185. While the Association operated in accordance with the terms of the executed agreement with the Florida Department of Agriculture and Consumer Services, it was subsequently determined that certain administrative costs permitted under that agreement were not allowable under the Uniform Guidance (2 CFR Part 200). Finding 2025-001: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Upon identification of this discrepancy, FSNA has taken immediate and decisive action: Program Termination & Strategic Shift: FSNA has formally concluded its participation in the Local Food for Schools Cooperative Agreement Program and has ceased all related activities. The Association has made the strategic decision not to pursue or engage in federal grant programs of this nature moving forward. This determination ensures alignment with the organization’s operational capacity and mitigates compliance risk associated with complex federal cost principles. Final Resolution: The identified material weakness has been addressed through the discontinuation of the applicable program, thereby removing the operational conditions under which the noncompliance occurred. Future Funding Consideration (If Applicable): While FSNA does not anticipate pursuing similar federal awards, the organization has established an internal standard that any future funding opportunities, if considered, will undergo a comprehensive compliance review to ensure alignment with the Uniform Guidance (2 CFR Part 200), the OMB Compliance Supplement, and all grantspecific terms and conditions. Record Retention: FSNA will maintain all financial and supporting documentation related to the FY25 audit period in accordance with applicable federal record retention requirements.

View Audit 400218

Finding 1210875 (2025-002)

Material Weakness 2025

Enrichment Services Program, Inc.

GA

Reporting Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.302 § 200.328 § 200.329 § 200.510

March 10, 2026 To: Clausell & Associates, P.C. From: Tabirus Lockhart, Chief Financial Officer of Enrichment Services Programs, Inc. Below is the Agency’s corrective action plan as it relates to the findings for the fiscal year ending July 31, 2024, Single Audit Act audit. Comment #2024-001 INTERNAL...

March 10, 2026 To: Clausell & Associates, P.C. From: Tabirus Lockhart, Chief Financial Officer of Enrichment Services Programs, Inc. Below is the Agency’s corrective action plan as it relates to the findings for the fiscal year ending July 31, 2024, Single Audit Act audit. Comment #2024-001 INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE-OUT, AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED GENERAL (Repeat) Views of Responsible Officials and Planned Corrective Actions: We concur with this finding - Management is in the process of assessing the organizational structure, capacity to provide adequate financial reporting. With Board review and approval of the Agency’s financial funding sources, the Agency will hire additional fiscal clerk to further support financial requirements and segregation of duties to ensure adequate internal controls are fully implemented. The CFO will have the overall responsibility of properly reconciling and closing out the accounting system and grant activity each month in an efficient and timely manner to eliminate the risk of significant errors occurring. Budget-to-actual schedules will be an integral part of the grant accountant analyst’s basic responsibilities. The fiscal policies and procedures will be updated with the enhancements implemented within the fiscal department. Staff will be trained on revised policies and procedures and Uniform Guidance regulations. The new automated financial systems, will support financial reporting to meet GAAP requirements and to provide informative reports for Board and Management. All enhancements will be implemented by December 31, 2024. Concerning preparation of external reports required by various funding sources (i.e., SF-425, DHS’s reports for LIHEAP, LIHWAP, etc.), the Agency will ensure adequate training is performed to improve the skills and knowledge of key personnel. Policies and procedures will also be revised to support external reporting. Implementation Date: The plan correction date will be completed no later than December 31, 2025. Responsible Person: Tabirus Lockhart, CFO, will be responsible for the corrective action. Comment #2025-002 INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE-OUT, AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED HEAD START AND EARLY HEAD START, LIHEAP, CSBG, ASTHO, CACFP, and CSLFRF FAL # 93.600, 93.568, 93.569, 93.185, 10.558, 21.027 (Questioned Costs - None) Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Management and staff are in the process of assessing and updating the policies and procedures over the accounting and reporting of federal and state grants and contracts. In connection with training staff on the new and updated accounting system, we are providing ongoing training on the requirements of the Uniform Guidance and the specific requirements for each individual grant award as outlined in each applicable Compliance Supplement issued by Office of Management and Budget (OMB). We are currently reconciling all cash accounts and completing and amending, where necessary, all SF-425 reports and other external reports required by each funding source (state and federal). We anticipate completing this corrective action by June 30, 2026. See also the response to Comment #2025-001. Implementation Date: The plan correction date will be completed no later than June 30, 2026. Responsible Person: Tabirus Lockhart, CFO, will be responsible for the corrective action.

View Audit 400215

Finding 1210858 (2025-002)

Material Weakness 2025

Kings Crossing Apartments

MN

Allowable Costs / Cost Principles HUD Housing Programs Internal Control / Segregation of Duties

View of Responsible Officials: The Project agrees with the finding and will replenish the replacement reserve by transferring $15,784 from the operating account to the replacement reserve account for the amount that was withdrawn from the replacement reserve in error. Responsible Party: Collyn Iblin...

View of Responsible Officials: The Project agrees with the finding and will replenish the replacement reserve by transferring $15,784 from the operating account to the replacement reserve account for the amount that was withdrawn from the replacement reserve in error. Responsible Party: Collyn Iblings, CFO Estimated Completion: Resolved. Funds were properly transferred on March 5, 2026.

View Audit 400190

Finding 1210856 (2025-002)

Material Weakness 2025

Carty Heights

MN

Allowable Costs / Cost Principles HUD Housing Programs Internal Control / Segregation of Duties

View of Responsible Officials: The Project agrees with the finding and will reconcile the replacement reserve account by transferring $14,899 from the replacement reserve to the operating account to properly reconcile the replacement reserve for the allowable costs and withdrawals approved by HUD. R...

View of Responsible Officials: The Project agrees with the finding and will reconcile the replacement reserve account by transferring $14,899 from the replacement reserve to the operating account to properly reconcile the replacement reserve for the allowable costs and withdrawals approved by HUD. Responsible Party: Collyn Iblings, CFO Estimated Completion: Resolved. Funds were properly transferred on March 5, 2026.

View Audit 400187

Finding 1210852 (2025-001)

Material Weakness 2025

The Josselyn Center, Nfp

IL

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Period of Performance § 200.302 § 200.309 § 200.317 § 200.327 § 200.403

2025-00I Condition: The center did not maintain adequate documentation to support compliance with Federal requirements related to allowable costs, period of performance, and procurement standards. Auditor's Recommendation: We recommend The Center review and revise its documentation policies and proc...

2025-00I Condition: The center did not maintain adequate documentation to support compliance with Federal requirements related to allowable costs, period of performance, and procurement standards. Auditor's Recommendation: We recommend The Center review and revise its documentation policies and procedures to ensure that compliance is met with regards to federal awards. Management response: Management agrees with the finding and has collaborated with grant personnel to implement standardized personnel activity reporting and cost allocation documentation for all federal grants. The Center will strengthen controls to ensure that only allowable costs incurred within the approved grant period are charged to federal awards. In addition, procurement procedures have been revised to ensure compliance with 2 CFR §§ 200.317-200.327. Corrective actions have been implemented or are in progress and apply to all federal awards moving forward beginning in FY2026.

View Audit 400141

Corrective Action Plans

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