Corrective Action Plans

Finding 1176625 (2025-008)

Material Weakness 2025

OR

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.305

Community Project Funding/Congressionally Directed Spending ‐ Construction – Assistance Listing No. 93.493 Recommendation: We recommend that the Association implement formal policies and procedures requiring remittance of federal funds directly to subrecipients, rather than paying vendors on the sub...

Community Project Funding/Congressionally Directed Spending ‐ Construction – Assistance Listing No. 93.493 Recommendation: We recommend that the Association implement formal policies and procedures requiring remittance of federal funds directly to subrecipients, rather than paying vendors on the subrecipient's behalf. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Effective October 1, 2025, all subrecipients were notified that payments would be made only to them, requiring them to directly pay their contractors and vendors. Name(s) of the contact person(s) responsible for corrective action: Lee McKenzie, OARN Grant Manager Planned completion date for corrective action plan: October 1, 2025

View Audit 390474

Finding 1176624 (2025-007)

Material Weakness 2025

Oregon Association of Relief Nurseries

OR

Allowable Costs / Cost Principles § 200.430

Community Project Funding/Congressionally Directed Spending ‐ Construction – Assistance Listing No. 93.493 Recommendation: We recommend that the Association implement formal policies and procedures requiring timesheets and payroll registers to be reviewed and approved, with such review and approval ...

Community Project Funding/Congressionally Directed Spending ‐ Construction – Assistance Listing No. 93.493 Recommendation: We recommend that the Association implement formal policies and procedures requiring timesheets and payroll registers to be reviewed and approved, with such review and approval clearly documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Effective January 1, 2026, the process for timesheet review has been updated. Previously, preliminary timesheets were reviewed and approved before payroll was entered into the system. Now, all final timesheets will be reviewed, approved, and cross-referenced with payroll registers to ensure consistency. Any identified errors will be documented and promptly resolved. Name(s) of the contact person(s) responsible for corrective action: Kendra Jones Planned completion date for corrective action plan: January 1, 2026

View Audit 390474

Finding 1176622 (2025-005)

Material Weakness 2025

Oregon Association of Relief Nurseries

OR

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.303

Community Project Funding/Congressionally Directed Spending ‐ Construction – Assistance Listing No. 93.493 Recommendation: We recommend that the Association implement formal policies and procedures requiring the review and approval of performance, with such review and approval clearly documented. Ex...

Community Project Funding/Congressionally Directed Spending ‐ Construction – Assistance Listing No. 93.493 Recommendation: We recommend that the Association implement formal policies and procedures requiring the review and approval of performance, with such review and approval clearly documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Effective January 1, 2026, the Executive Director will review a PDF copy and document approval via email of OARN's Semi-Annual Progress Reports prior to uploading into the EHB. Name(s) of the contact person(s) responsible for corrective action: Kendra Jones, Executive Director Planned completion date for corrective action plan: January 1, 2026

View Audit 390474

Finding 1176621 (2025-004)

Material Weakness 2025

Oregon Association of Relief Nurseries

OR

Allowable Costs / Cost Principles § 200.430

Community Project Funding/Congressionally Directed Spending ‐ Construction – Assistance Listing No. 93.493 Recommendation: We recommend that the Association implement formal policies and procedures requiring timesheets to be reviewed and approved, with such review and approval clearly documented. Ex...

Community Project Funding/Congressionally Directed Spending ‐ Construction – Assistance Listing No. 93.493 Recommendation: We recommend that the Association implement formal policies and procedures requiring timesheets to be reviewed and approved, with such review and approval clearly documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Previously, preliminary timesheets were reviewed and approved before payroll entry, but a signature was not required. The timesheet review process has been updated, effective January 1, 2026. Now, both preliminary and final timesheets require the following steps: 1. Review 2. Approval 3. Signature 4. Conversion to PDF (to prevent alteration). Name(s) of the contact person(s) responsible for corrective action: Kendra Jones, Executive Director Planned completion date for corrective action plan: January 1, 2026

View Audit 390474

Finding 1176619 (2025-002)

Material Weakness 2025

Oregon Association of Relief Nurseries

OR

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.303

Community Project Funding/Congressionally Directed Spending ‐ Construction – Assistance Listing No. 93.493 Recommendation: We recommend that the Association implement policies and procedures to ensure the performance of subrecipient monitoring and that the monitoring is formally documented and appro...

Community Project Funding/Congressionally Directed Spending ‐ Construction – Assistance Listing No. 93.493 Recommendation: We recommend that the Association implement policies and procedures to ensure the performance of subrecipient monitoring and that the monitoring is formally documented and approved. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: OARN's current monitoring of Subrecipients has included reviewing budgets and progress reports, approving vendors, and processing drawdown requests to confirm the appropriate use of subaward funds in compliance with Federal regulations and subaward terms. However, OARN recognizes the need for a more comprehensive review process to ensure full subrecipient compliance. Therefore, we plan to request audits or financial reviews from all subrecipients. We will also require documentation demonstrating that the subrecipient has taken prompt and necessary corrective action in response to any deficiencies identified through audits, on-site reviews, or other methods related to the Federal program. OARN has created and will maintain a Subrecipient Monitoring and Approval Form that tracks receipt and review of 1) audit reports and corrective actions along with 2) checks on SAM.gov to confirm the subrecipient's continued eligibility for federal funds. Name(s) of the contact person(s) responsible for corrective action: Lee McKenzie, OARN Grant Manager Planned completion date for corrective action plan: March 30, 2026

View Audit 390474

Finding 1176590 (2025-002)

Material Weakness 2025

Housing Authority of the City of Pasco and Franklin County

WA

HUD Housing Programs Allowable Costs / Cost Principles

Criteria: Neither the PHA nor any of its contractors or subcontractors may enter into any contract or arrangement in connection with the HCV program in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter (2) Any employee of the...

Criteria: Neither the PHA nor any of its contractors or subcontractors may enter into any contract or arrangement in connection with the HCV program in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter (2) Any employee of the PA, or any contractor, subcontractor or agent of the PHA, who formulates policy or who influences decisions with respect to the programs (24 CFR sections 982.161). Condition: During the audit, it was noted that multiple (3) participants of the HCV program were either employees or relatives of employees. Context: According to 24 CFR 982.161, any employee who exercise authority over the PHA cannot receive benefits. However, past OIG action has issued findings to Public Housing Authority entitles when any employee and immediate family member receives benefits as unallowable cost. The OIG's concern seems to be that the tenant may have received special treatment at admission or is currently receiving special treatment related to rent calculation, unit inspections, etc. The OIG regarded the HAP costs as ineligible and recommended that the PHA re-pay the funds. Cause: The non-compliance appears to stem from ambiguity in the Housing Authority's policy relating to Conflict of Interest. Effect: The Conflict of Interest undermines the community's trust with the Housing Choice Vouchers Program. It also represents a risk of improper use of federal funds and can impact the credibility and effectiveness of the program. Recommendations: Update the Authority's Conflict of Interest policy and implement more stringent procedures for monitoring Conflict of Interest. Questioned Costs: The exact monetary impact needs further investigation to determine the amount of HAP that should have been unallowable for the period of non-compliance. Management Views: Management Agrees - see Corrective Action Plan ecommended in the Independent Auditor's Report as it pertains to internal controls over our HCV program. Please note, our agency is in the midst of transitioning between executive directors - therefore, we request additional time so that our personnel policy can be gone through by our new executive director, after which such individual is hired, reviewed by our agency attorney, and then approved by our board of commissioners. This process will take additional time to complete. Our agency will review its internal control over annual policy reviews to ensure that all policies, not just our "Coriflict of Interest Policy", are adhered to. Below is our current HACPFC Coriflict of Interest Policy, followed by our proposed amended Coriflict of Interest Policy. You are to avoid placing yourself in a position that may create or lead to a conflict of interest or the appearance of one. A conflict of interest exists when there is evidence of or the appearance that a commissioner's/employee's personal interests have influenced or may influence HACPFC transactions or operations, or that these interests take precedence over the interests, goals, and/or mission of HACPFC. Or a situation where a benefit or advantage of an economic or tangible nature that might inure to an HACPFC employee, creates a potential bias or loss of independence of judgment in the performance of that employee's or Commissioner's duties. For the purpose of this policy, a relative is defined as a spouse/significant other, parent, sibling, child, grandchild, grandparent, parent-in-law, brother-in-law, sister-in-law, daughter-in-law, son in-law, aunt, uncle, niece, nephew, cousin, stepparent, or stepchild. An actual, potential, or perceived conflict of interest occurs when an employee, contractor, agent, officer, or member of the Board of Commissioners is in a position to influence a decision that may result in a personal gain for that employee or for a relative as a result of the HACPFC's business dealings. Employees need to refrain from conducting business that presents a conflict of interest as described above. No "presumption of guilt" is created by the mere existence of a relationship with outside firms. However, if employees have any influence on transactions involving purchases, contracts, or leases, it is imperative that they disclose to the Executive Director of HACPFC as soon as possible the existence of any actual or potential conflict of interest so that safeguards can be established to protect all parties. Employees should avoid any situations which involves or may involve a conflict between their personal interest and the interest in HACPFC or any other arrangement or circumstances including family or other personal relationships, which might dissuade the employees from acting in the best interest of HACPFC. All employees will be required to sign the Employee Conflict of Interest Disclosure Form as part of employment. You are also prohibited from having any personal interest, directly or indirectly, in any transaction with HACPFC or from otherwise using your position to secure special privileges for yourself or others. You may not directly or indirectly give or receive any compensation, gift, reward or gratuity from any source other than HACPFC for any matter or service which relates directly or indirectly in any way to your work for HACPFC. You also may not accept or engage in any business, personal or professional activity that might be reasonably expected to require or induce you to disclose confidential or proprietary information regarding HACPFC or its applicants, tenants or program participants. If you have any questions regarding whether a conflict may exist, you should ask the Executive Director before engaging in the conduct at issue. Proposed Personnel Policv Change/ added language in red: Gifts: Conflict of Interest: You are to avoid placing yourself in a position that may create or lead to a conflict of interest or the appearance of one. A conflict of interest generally exists when there is evidence of or the appearance that a commissioner's/employee's personal interests have influenced or may influence HACPFC transactions or operations, or that these interests take precedence over the interests, goals, and/or mission of HACPFC.

View Audit 390400

Finding 1176574 (2025-008)

Material Weakness 2025

Johnson C. Smith University

NC

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Corrective Action Plan: The University is committed to ensuring compliance with all federal, institutional, and program regulations. The University continues to enhance its internal controls, policies, and procedures to ensure the appropriate documentation to support is maintained, and to ensure tha...

Corrective Action Plan: The University is committed to ensuring compliance with all federal, institutional, and program regulations. The University continues to enhance its internal controls, policies, and procedures to ensure the appropriate documentation to support is maintained, and to ensure that level of effort is appropriately documented and reported. To this end the University enlisted the support of Moore & Van Allen and associates law firm to support in developing enhanced policies, procedures, and training modules to support an increased level of compliance support. Moore & Van Allen is a wellrespected international law firm that specializes in reporting compliance and compliance training.To address the specific audit concerns Moore & Van Allen in conjunction with the JCSU executive cabinet, Government Sponsored Programs, the President and Board of Trustees to develop these policies, supporting procedures and training modules. These policies have been approved as of the January 15, 2026 Board of Trustees meeting: Time and Effort Reporting Policy, Government- Sponsored Equipment and Property Management Policy, Post-Award Management Policy, Grant Records Management Policy and Revised Extra Compensation for Faculty and Staff Policy. The level of effort reporting process has been modified to a consistent reporting for all campus awards. Level of effort reports are done by academic term, and the reports are due within 60 days following the end of the term. The Office of Government Sponsored Programs (“GSPAR”) has implemented monitoring and tracking measures to all reports are captured and completed according to federal guidelines. A system of multiple reviews has been implemented to help in reducing errors in reporting and increase efficiency in timeliness of the reports. Additionally, GSPAR intends to work closely with the Human Resources division to ensure accurate and efficient Time and Effort reporting. To address this concern, the Payroll unit has been reorganized into the Business and Finance Office to streamline communication and time and effort report fidelity between Payroll and GSPAR. In addition, the University mandated participation in compliance training for all faculty and staff; participants are required to submit an acknowledgment that they participated in the training and are aware of the compliance requirements. The mandatory training will occur annually for the university and all new grant award recipients will receive this training as part of their grant startup process. All GSPAR employees will also participate in training related to time and effort and allowable costs compliance, annually. Specific to the TRIO programs, as the result of a re-organization in February 2025 the University created a new position: Assistant Vice President (AVP) for Student Affairs, TRIO, and Well-being. This role will oversee Time and Effort Reporting, Annual Performance Report submissions, and financial transactions, ensuring accuracy and adherence to all relevant policies, regulations, and procedures. Additionally, this position will support professional development initiatives to enhance grant management and compliance. The AVP will also support university efforts to conduct regular program reviews to ensure proper documentation supporting TRIO eligibility and adherence to program requirements. To improve program knowledge and standardize practices, TRIO personnel will continue engaging in professional development offered locally and nationally. Internally, the TRIO Leadership Team (TRIO Project Directors and SVP of Student Enrollment & Retention Management) established TRIO Professional Development Day, a two-day training designed specifically for JCSU TRIO staff. These sessions provide guidance on university policies, financial compliance, Time and Effort reporting, effective record-keeping, and data management. The event also includes a roundtable discussion to promote collaboration and shared learning across programs. In addition, the TRIO Leadership Team will continue to explore best practices from high-functioning TRIO programs. To enhance communication and strengthen internal controls, the TRIO Leadership Team implemented monthly TRIO Program meetings. These meetings, involving TRIO Project Directors and the Senior Vice President of Strategic Enrollment and Retention Management, facilitate discussions on compliance, streamline processes, and support policy development. Additionally, the TRIO Leadership Team established monthly interdepartmental meetings among TRIO programs, the Division of Government Sponsored Programs and Research, and the Division of Business and Finance to further ensure alignment with institutional and federal requirements. Human Resources will also participate in future meetings to review Time and Effort Reporting procedures. TRIO Project Directors maintain ongoing communication with the Department of Education Program Officer, seeking written guidance on allowable costs, staffing adjustments, and fund reallocations, when necessary. Continuous monitoring and evaluation will ensure the effectiveness of these corrective actions, allowing the university to identify areas for ongoing improvement and maintain full compliance with all regulatory requirements Anticipated Completion Date: December 2026

View Audit 390365

Finding 1176540 (2025-018)

Material Weakness 2025

State of West Virginia

WV

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.320 § 200.334 § 200.520

2025-018 PROCUREMENT HIGHER EDUCATION POLICY COMMISSION (HEPC), BLUEFIELD STATE UNIVERSITY (BSU) Assistance Listing Number: Various – Research & Development Cluster Higher Education Policy Commission (HEPC) response: HEPC maintains procurement policies consistent with state law, which is one of the ...

2025-018 PROCUREMENT HIGHER EDUCATION POLICY COMMISSION (HEPC), BLUEFIELD STATE UNIVERSITY (BSU) Assistance Listing Number: Various – Research & Development Cluster Higher Education Policy Commission (HEPC) response: HEPC maintains procurement policies consistent with state law, which is one of the three allowable criteria recognized in 2 CFR §200.320(a)(1)(iv) for establishing a micro purchase threshold of up to $50,000. A Self-Certification letter will be developed and maintained by April 30, 2026, while formally defining micro-purchase thresholds applied to federal awards. This selfcertification letter will be retained as part of our procurement documentation and will provide how the micro-purchase threshold was determined and applied in accordance with 2 CFR §200.320(a)(1)(iv). Bluefield State University (BSU) response: Beginning in FY 2026, the BSU Controller and Director of Purchasing will review the criteria recognized in 2 CFR §200.320(a)(1)(iv) for establishing a micro purchase threshold of up to $50,000. These requirements will be presented to the Board of Governors before June 30, 2026.

View Audit 390319

Finding 1176536 (2025-017)

Material Weakness 2025

State of West Virginia

WV

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

2025-017 ALLOWABLE COSTS/COST PRINCIPLES DEPARTMENT OF HUMAN SERVICES (DOHS) Assistance Listing Number: 93.659 DOHS maintains a multi-layered review process for P-card payments. While documentation for the two specific transactions totaling $26 was unavailable at the time of the audit, these transac...

2025-017 ALLOWABLE COSTS/COST PRINCIPLES DEPARTMENT OF HUMAN SERVICES (DOHS) Assistance Listing Number: 93.659 DOHS maintains a multi-layered review process for P-card payments. While documentation for the two specific transactions totaling $26 was unavailable at the time of the audit, these transactions were processed through the same automated financial system that enforces budgetary limits and eligibility checks for all validated cases. Due to current system configurations, P-card transactions must be processed even when documentation is missing. According to the internal controls, any transaction not properly reconciled is marked “Admin Not Reconciled”. This designation indicates the DOHS is aware of the missing documentation, which, according to policy, becomes the cardholder’s responsibility. The Office of Shared Administration (OSA) P-card Division provides reconciliation dates and notifies coordinators of any unreconciled transactions. If a cardholder loses a receipt, they are permitted to submit a lost receipt memo detailing the purchase, accompanied by a supervisor’s signature. The P-card Division has recently begun working closely with the DOHS’s internal purchasing card audit section within the OSA Office of Accountability and Management Reporting (OAMR) to mitigate reconciliation errors. OAMR reviews transactions for accuracy and completeness. Through this coordinated effort, missing documentation or errors are investigated and brought to management’s attention. DOHS will continue to issue monthly notifications to staff emphasizing that all P-card expenditures must be reconciled with proper documentation within one week of the cycle end date. Reconciliations must be electronically reviewed and approved by a supervisor to verify the allowability of costs. To mitigate noncompliance, the P-card Division will work with OAMR to monitor repeated occurrences. Persistent failure to provide documentation or obtain approval may result in the temporary suspension of purchasing privileges. These measures ensure that documentation is maintained, reviewed, and readily available for future audits.

View Audit 390319

Finding 1176534 (2025-016)

Material Weakness 2025

State of West Virginia

WV

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

2025-016 ALLOWABLE COSTS/COST PRINCIPLES DEPARTMENT OF HEALTH & HUMAN SERVICES (DOHHS) Assistance Listing Number: 93.658 DOHHS maintains a multi-layered review process for P-card payments. While documentation for the two specific transactions totaling $50 was unavailable at the time of the audit, th...

2025-016 ALLOWABLE COSTS/COST PRINCIPLES DEPARTMENT OF HEALTH & HUMAN SERVICES (DOHHS) Assistance Listing Number: 93.658 DOHHS maintains a multi-layered review process for P-card payments. While documentation for the two specific transactions totaling $50 was unavailable at the time of the audit, these transactions were processed through the same automated financial system that enforces budgetary limits and eligibility checks for all validated cases. Due to current system configurations, P-card transactions must be processed even when documentation is missing. According to the internal controls, any transaction not properly reconciled is marked “Admin Not Reconciled”. This designation indicates the DOHHS is aware of the missing documentation, which, according to policy, becomes the cardholder’s responsibility. The Office of Shared Administration (OSA) P-card Division provides reconciliation dates and notifies coordinators of any unreconciled transactions. If a cardholder loses a receipt, they are permitted to submit a lost receipt memo detailing the purchase, accompanied by a supervisor’s signature. The P-card Division has recently begun working closely with the DOHHS’s internal purchasing card audit section within the OSA Office of Accountability and Management Reporting (OAMR) to mitigate reconciliation errors. OAMR reviews transactions for accuracy and completeness. Through this coordinated effort, missing documentation or errors are investigated and brought to management’s attention. DOHHS will continue to issue monthly notifications to staff emphasizing that all P-card expenditures must be reconciled with proper documentation within one week of the cycle end date. Reconciliations must be electronically reviewed and approved by a supervisor to verify the allowability of costs. To mitigate noncompliance, the P-card Division will work with OAMR to monitor repeated occurrences. Persistent failure to provide documentation or obtain approval may result in the temporary suspension of purchasing privileges. These measures ensure that documentation is maintained, reviewed, and readily available for future audits.

View Audit 390319

Finding 1176533 (2025-015)

Material Weakness 2025

State of West Virginia

WV

Allowable Costs / Cost Principles Eligibility § 200.303 § 200.403

2025-015 ALLOWABLE COSTS/COST PRINCIPLES, ELIGIBILITY DEPARTMENT OF HEALTH & HUMAN SERVICES (DOHHS) Assistance Listing Number: 93.658 DOHHS’s corrective action plan from the prior audit indicated that a system change was made during FY 2025 to prevent future payments to psychiatric facilities from b...

2025-015 ALLOWABLE COSTS/COST PRINCIPLES, ELIGIBILITY DEPARTMENT OF HEALTH & HUMAN SERVICES (DOHHS) Assistance Listing Number: 93.658 DOHHS’s corrective action plan from the prior audit indicated that a system change was made during FY 2025 to prevent future payments to psychiatric facilities from being charged to the Foster Care program. This change did go into effect on September 19, 2024. However, this provider was an anomaly. The facility was a Residential Treatment Facility which was Title IV-E eligible until they received Psychiatric Residential Treatment Facility (PRTF) status in August of 2024, however, they did not provide DOHHS documentation until February 2025. Immediate action was taken by a call ticket to the Technical Call Center to ensure that the PRTF was not continuing to show as IV-E eligible. The staff from the Division of Regulatory Management will continue, as part of their annual licensing review will ensure wvPATH provider records are updated to reflect timely licensing status as well as ensuring that child specific agreements do not lapse. The previously stated Corrective Action Plan remains in place and will continue.

View Audit 390319

Finding 1176448 (2025-002)

Material Weakness 2025

Board of Child Care of the United Methodist Church, Inc.

MD

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

Views of Responsible Officials: Management acknowledges the findings related to Payroll Allocation, and Training & Compliance, as outlined in the recent audit report. We appreciate the recommendations provided and are committed to implementing corrective actions to strengthen compliance, improve pay...

Views of Responsible Officials: Management acknowledges the findings related to Payroll Allocation, and Training & Compliance, as outlined in the recent audit report. We appreciate the recommendations provided and are committed to implementing corrective actions to strengthen compliance, improve payroll allocation accuracy, and enhance staff knowledge of grant management requirements.

View Audit 390264

Finding 1176429 (2025-004)

Material Weakness 2025

Vandalia Cusd 203

IL

Internal Control / Segregation of Duties Allowable Costs / Cost Principles School Nutrition Programs

Finding Synopsis: One employee's payroll disbursement made under the Child Nutrition Cluster was improperly calculated. Action Steps: A district staff member will review the payroll calculations so no transpositions or errors occur. Contact Person(s): Dr. Jennifer Garrison, Superintendent Anticipate...

Finding Synopsis: One employee's payroll disbursement made under the Child Nutrition Cluster was improperly calculated. Action Steps: A district staff member will review the payroll calculations so no transpositions or errors occur. Contact Person(s): Dr. Jennifer Garrison, Superintendent Anticipated Completion Date: February 11, 2026

View Audit 390260

Finding 1176373 (2025-001)

Material Weakness 2025

Harlan County Community Action Agency, Inc.

KY

Allowable Costs / Cost Principles § 200.403

The entity has implemented new procedures for the preparation and review of reimbursement requests.

View Audit 390192

Finding 1176359 (2025-001)

Material Weakness 2025

City of Sterling Heights, Michigan

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility

2025-001 – Federal Funding Accountability and Transparency Act (FFATA) Reporting Auditor Description of Criteria, Condition, and Effect: Under the requirements of the Federal Funding Accountability and Transparency Act, direct recipients of grants or cooperative agreements are required to report fir...

2025-001 – Federal Funding Accountability and Transparency Act (FFATA) Reporting Auditor Description of Criteria, Condition, and Effect: Under the requirements of the Federal Funding Accountability and Transparency Act, direct recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Direct recipients must report key data elements by registering through the FSRS and reporting subaward data through that system. Direct recipients that are awarded a federal grant are required to file a FFATA sub-award report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. The City did not submit the required key data elements through the FSRS reporting system as required by the Uniform Guidance and as a result has not completed the appropriate sub-award reporting that is required for direct recipients. Auditor Recommendation: We recommend that the City review its procedures for FFATA reporting through FSRS and ensure that all key data elements are reported timely moving forward. Corrective Action: Upon discovery of the issue in November 2025, City staff corrected the noncompliance by submitting the required report to the appropriate reporting system/entity. To prevent recurrence, management has strengthened internal controls over FFATA reporting and Single Audit preparation by (1) adding review and verification steps, (2) communicating expectations with key personnel, and (3) explicitly assigning submission responsibility to a designated submitter who is independent of the individual(s) responsible for monitoring compliance. These control enhancements are expected to identify and prevent similar deficiencies and, based on implementation to date, appear to be operating effectively. Responsible Person: Jason Denton, Controller Anticipated Completion Date: June 30, 2026

View Audit 390179

Finding 1176354 (2025-001)

Material Weakness 2025

Lowndes County Board of Education

GA

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

FA 2025-001 Strengthen Controls over Employee Compensation Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Questioned Costs: Allowable Costs/Cost Principles Significant Defici...

FA 2025-001 Strengthen Controls over Employee Compensation Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Questioned Costs: Allowable Costs/Cost Principles Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Georgia Department of Education 84.027 - Special Education Cluster Grant to States 84.173 - Special Education Cluster Preschool Grants H027A230073 (Year: 2024), H027A240073 (Year: 2025), H173A240081 (Year: 2025) $1,283 Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over the employee compensation process as it relates to the Special Education Cluster. Corrective Action Plans: The District concurs with the finding and is committed to strengthening internal controls. While the identified discrepancies were isolated, we recognize the need for enhanced reconciliation during personnel transitions. The Human Resources and Finance departments will enhance our review process. This pre-payroll validation step will ensure that all salary adjustments and position changes align with Board authorized pay documentation prior to disbursement. Estimated Completion Date: 3/31/2026 Contact Person: Julie Wiley, Chief Financial Officer Telephone: 229-316-1878 Email: juliewiley@lowndes.k12.ga.us

View Audit 390177

Finding 1176328 (2025-002)

Material Weakness 2025

Dallas/fort Worth International Airport Board

TX

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

Condition: The controls in place to review the final grant packet, including the grant draw-down template and the drawdown invoice detail, prior to final processing of the drawdown were not operating as designed. Planned Corrective Action: Treasury will work with PMM and DCC departments to out-line ...

Condition: The controls in place to review the final grant packet, including the grant draw-down template and the drawdown invoice detail, prior to final processing of the drawdown were not operating as designed. Planned Corrective Action: Treasury will work with PMM and DCC departments to out-line a process to ensure accurate reporting of eligible expenses when invoices are re-viewed for compliance with grant program requirements. The process will be documented and adhered to once agreed by all departments. A review process for the final drawdown submission will also be adopted to ensure costs that are identified as ineligible are appro-priately excluded from the final submission. Contact person responsible for corrective action: Sr. Grants Manager Anticipated Completion Date: 06/30/2026

View Audit 390144

Finding 1176301 (2025-004)

Material Weakness 2025

Oregon Food Bank, Inc.

OR

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting § 200.414

Since the prior audit period, management has taken steps to establish procedures and internal controls to ensure consistent application, billing, and reporting of indirect cost rates across all federal awards. Such steps include defining and documenting roles and responsibilities for applicable staf...

Since the prior audit period, management has taken steps to establish procedures and internal controls to ensure consistent application, billing, and reporting of indirect cost rates across all federal awards. Such steps include defining and documenting roles and responsibilities for applicable staff members during each phase of the grants management lifecycle, as well as implementing procedures and tools to ensure compliance with subrecipient monitoring requirements. These steps involve multiple levels of review for accurate and consistent application of indirect cost rates. Finance will continue implementing the corrective actions necessary to achieve effective controls over compliance with indirect cost rate requirements. Policy and procedures on allowable and allocable costs will be drafted to clearly document how direct and indirect costs will be billed to federal awards. Training will be provided to relevant staff members to ensure accurate implementation and ongoing compliance. These actions will improve our ability to manage indirect costs effectively and ensure compliance with federal requirements. The anticipated completion date remains June 30, 2026.

View Audit 390140

Finding 1176293 (2025-003)

Material Weakness 2025

Oregon Food Bank, Inc.

OR

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Subrecipient Monitoring § 200.430

Since the prior audit period, management has taken steps to develop and implement a time and effort reporting system that meets federal documentation standards, such as activating the electronic timekeeping system to track actual work performed and testing adoption of reporting procedures across dep...

Since the prior audit period, management has taken steps to develop and implement a time and effort reporting system that meets federal documentation standards, such as activating the electronic timekeeping system to track actual work performed and testing adoption of reporting procedures across departments and teams. Finance will continue implementing the corrective actions necessary to establish an effective and compliant time and effort reporting system, including providing training for employees and regularly monitoring for effective system utilization. These actions will strengthen internal controls and ensure personnel costs are accurately recorded and appropriately allocated. The anticipated completion date remains June 30, 2027.

View Audit 390140

Finding 1176285 (2025-008)

Material Weakness 2025

Cahokia Community Unit School District No. 187

IL

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

Condition: The District claimed expenses on the June 30, 2025 expenditure report that were not paid untl after year end. Recommendation We recommend that steps are taken, including oversight by a second employee, to ensure that expenditure reports are reviewed for allowable expenses and that all exp...

Condition: The District claimed expenses on the June 30, 2025 expenditure report that were not paid untl after year end. Recommendation We recommend that steps are taken, including oversight by a second employee, to ensure that expenditure reports are reviewed for allowable expenses and that all expenses claimed are for expenses paid during the year. Managements Response: The District will take the necessary steps to only claim allowable expenses on future expenditure reports.

View Audit 390136

Finding 1176284 (2025-007)

Material Weakness 2025

Cahokia Community Unit School District No. 187

IL

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

Condition: The District claimed expenses on the June 30, 2025 expenditure report that were not paid untl after year end. Recommendation We recommend that steps are taken, including oversight by a second employee, to ensure that expenditure reports are reviewed for allowable expenses and that all exp...

Condition: The District claimed expenses on the June 30, 2025 expenditure report that were not paid untl after year end. Recommendation We recommend that steps are taken, including oversight by a second employee, to ensure that expenditure reports are reviewed for allowable expenses and that all expenses claimed are for expenses paid during the year. Managements Response: The District will take the necessary steps to only claim allowable expenses on future expenditure reports.

View Audit 390136

Finding 1176269 (2025-001)

Material Weakness 2025

Cartwright Elementary School District No. 83

AZ

Allowable Costs / Cost Principles § 200.303

Finding Number: 2025‐001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Contact Person: Dr. Derek Etheridge, Executive Director of Business Services Anticipated Completion Date: March 1, 2026 Planned Corrective Action: Reimbursements for federal...

Finding Number: 2025‐001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Contact Person: Dr. Derek Etheridge, Executive Director of Business Services Anticipated Completion Date: March 1, 2026 Planned Corrective Action: Reimbursements for federal grant expenditures will be verified and signed by two individuals, including the person responsible for the reimbursement request and a member of the management team.

View Audit 390119

Finding 1176227 (2025-004)

Material Weakness 2025

School District of Cadott Community

WI

Allowable Costs / Cost Principles Procurement, Suspension & Debarment

2025-004: Internal Control over Activities Allowed/Allowable Costs – COVID-19: Education Stabilization Fund Corrective Action: The District acknowledges this finding. Invoices are reviewed by the Administration and Board of Education monthly. Additional reviews by administration will be put into pla...

2025-004: Internal Control over Activities Allowed/Allowable Costs – COVID-19: Education Stabilization Fund Corrective Action: The District acknowledges this finding. Invoices are reviewed by the Administration and Board of Education monthly. Additional reviews by administration will be put into place. The Board of Education shall approve the pay rates annually and appropriate documentation kept. Responsible Person: Danielle Mittermeyer Anticipated Completion Date: Ongoing

View Audit 390107

Finding 1176226 (2025-003)

Material Weakness 2025

School District of Cadott Community

WI

School Nutrition Programs Allowable Costs / Cost Principles Eligibility

2025-003: Internal Control over Eligibility – Child Nutrition Cluster Corrective Action: Acknowledging the lack of controls within the Child Nutrition program's eligibility process, the District has determined that hiring additional staff to resolve this internal control deficiency is not a cost-eff...

2025-003: Internal Control over Eligibility – Child Nutrition Cluster Corrective Action: Acknowledging the lack of controls within the Child Nutrition program's eligibility process, the District has determined that hiring additional staff to resolve this internal control deficiency is not a cost-effective solution. Consequently, the Food Service Director and the Finance Director share the responsibility of reviewing student eligibility forms. Responsible Person: Danielle Mittermeyer Anticipated Completion Date: Ongoing

View Audit 390107

Finding 1176191 (2025-001)

Material Weakness 2025

Illinois Finance Authority

IL

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.303

Corrective Action Plan Single Audit Finding 2025-001: Internal Controls over Allowable Costs/Activities Plan: The IFA acknowledges the importance of internal controls and appropriate segregation of duties ensuring the review and approval process for Authority financial transactions (i.e., expenditur...

Corrective Action Plan Single Audit Finding 2025-001: Internal Controls over Allowable Costs/Activities Plan: The IFA acknowledges the importance of internal controls and appropriate segregation of duties ensuring the review and approval process for Authority financial transactions (i.e., expenditures applied to corresponding grants are allowable; month-end financial entries; etc.). With recent staff additions, IFA has enhanced its internal control environment by implementing a review/authorization process to ensure the preparation and approval of journal entries (i.e., month-end, etc.) occurs in accordance of established internal controls and appropriate segregation of duties (e.g., month-end journal entries prepared by the IFA SVP-FA are reviewed and approved by the IFA Chief Operating Officer, or appropriate designee). Since manual or adjusting journal entries are information processing activities that carry higher risk, a review of journal entries after posting serve as acceptable verification control in accordance with the United States Government Accountability Office Standards for Internal Control in the Federal Government that helps ensure transactions are appropriate. These post-entry reviews represent an acceptable form of management oversight (Principle 16) and serve as an acceptable validation check (Principle 10) to confirm that entries align with supporting documentation, reconcile with expectations, and aligned with organizational directives. Month Implemented: November 2025 IFA Contact: Ms. Ximena Granda SVP – Finance & Administration xgranda@il-fa.com Office (312) 651-1362

View Audit 390009

Corrective Action Plans

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