Corrective Action Plans

Finding 1172432 (2025-002)

Material Weakness 2025

Eagle Advantage Schools, Iync Dba Advantage Academ

TX

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency

Finding 2025-002: Allowable cost-Significant deficiency in internal controls over compliance. Management Response The District purchased supplies on the District credit card. There was no purchasing requisition entered or approval prior to making the purchase. The District conducted procurement trai...

Finding 2025-002: Allowable cost-Significant deficiency in internal controls over compliance. Management Response The District purchased supplies on the District credit card. There was no purchasing requisition entered or approval prior to making the purchase. The District conducted procurement training in August 2025. The District will conduct another training in October 2025 to discuss procurement requirements regarding credit card purchases. If a credit card purchase is made without a requisition, the accounts payable staff will notify the management prior to the credit card payment.

View Audit 385564

Finding 1172415 (2025-001)

Material Weakness 2025

Holmes County Consolidated School District

MS

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Equipment & Real Property Management

Finding Correction Action Plan Details 2025-001 a. Name of Contact Person Responsible for Corrective Action: Michelle Cage – Chief Financial Officer b. Corrective Action Planned: Management will continue to implement policies or procedures to establish an internal control system that will ensure str...

Finding Correction Action Plan Details 2025-001 a. Name of Contact Person Responsible for Corrective Action: Michelle Cage – Chief Financial Officer b. Corrective Action Planned: Management will continue to implement policies or procedures to establish an internal control system that will ensure strong financial accountability, proper safeguarding of assets, and compliance with federal grant requirements. c. Anticipated Completion Date: Immediately.

View Audit 385530

Finding 1172313 (2025-002)

Material Weakness 2025

Catholic Community Services of the Mid-Willamette Valley, INC

OR

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

The Organization has set up a system to review transfers of federal funding by the Senior Asset Manager and Chief Financial Officer prior to the transfer taking place to ensure it is within the compliance requirements of the grant

View Audit 385343

Finding 1172162 (2025-008)

Material Weakness 2025

School District of Thorp

WI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

Recommendation: CLA recommends the District review its grant disbursement process to ensure that there is adequate segregation of duties in regards to initiating, authorizing, reviewing for grant allowability and approving purchases, along with adding controls to ensure that the item purchased was r...

Recommendation: CLA recommends the District review its grant disbursement process to ensure that there is adequate segregation of duties in regards to initiating, authorizing, reviewing for grant allowability and approving purchases, along with adding controls to ensure that the item purchased was received by the District. CLA also also recommends the District printout the eligibility reports from Wisegrants and sign and date them to indicate review and approval after meeting with CESA 10 each year. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action planned/taken in response to finding: The District will note the date of the budget meeting with CESA 10. When items are purchased for Title I, approval will be made by either the Elementary Principal or Superintendent before purchases are made. Name(s) of the contact person(s) responsible for corrective action: Brooke Rosemeyer, Adrian Foster, Brandon Baldry Planned completion date for corrective action plan: September 1, 2026.

View Audit 385300

Finding 1172121 (2025-003)

Material Weakness 2025

Mecklenburg County

NC

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency

Program Name: Special Supplemental Nutrition Program for Women, Infants, and Children Federal Assistance Listing Number 10.557 Significant Deficiency – Allowable Costs/Costs Principles Repeat Finding 2025-003 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must esta...

Program Name: Special Supplemental Nutrition Program for Women, Infants, and Children Federal Assistance Listing Number 10.557 Significant Deficiency – Allowable Costs/Costs Principles Repeat Finding 2025-003 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: There were 3 out of 40 samples tested where clear and consistent documentation of a control over allowable costs and activities was not present. Effect: Without consistent documentation and adherence to departmental policy for approving allowable costs, there is an increased risk that unallowable expenditures may be charged to the program, potentially resulting in noncompliance with federal requirements and questioned costs. Questioned Costs: None. Cause: The departmental policy to approve expenditure documents as an allowable cost for the program was not followed. Recommendation: The County should consistently follow departmental policy by ensuring all expenditure documents for the program are properly reviewed and approved as allowable costs before being approved for payment and maintain clear documentation of controls over program activities to support compliance with federal requirements. Views of Responsible Officials: Management agrees with the finding and is implementing procedures to correct this which is further discussed in the Corrective Action Plan. Correction Action Plan: Program leadership will collaborate with the County Finance Team to ensure departmental policy is followed when purchases are made using WIC Federal funds. Internal purchase approval documents will be created to enhance the approval workflow. All purchases will be submitted to the WIC Program Director for approval. The program Director and the Sr. Admin Assistant will review the orders and ensure they are allowable items per the NC State WIC program guidelines. A shared folder will be created to save the purchase order forms, and the invoices to ensure Mecklenburg County Health Department Policy A-13, Retention of Administrative Documents is followed. The following the phases of the corrective action plan will be completed by March 1st, 2026. Phase 1: Review of Federal and State Guidelines Phase 2: Mecklenburg County Procurement Policy Review Phase 3: Creation and Implementation of new internal purchase approval processes. Phase 4: Staff Training Anticipated Completion Date: March 1st, 2026 Responsible Person(s): Ali Raza, WIC Director

View Audit 385263

Finding 1171973 (2025-001)

Material Weakness 2025

Virginia Commonwealth University Health System

VA

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

Audit Finding: The Authority did not have sufficient internal controls to ensure that payroll expenditures submitted to FEMA were incurred within the applicable period of performance prior to submission of the project worksheet. Recommendation: The Authority’s policy and procedures should be designe...

Audit Finding: The Authority did not have sufficient internal controls to ensure that payroll expenditures submitted to FEMA were incurred within the applicable period of performance prior to submission of the project worksheet. Recommendation: The Authority’s policy and procedures should be designed to strengthen the internal controls over the review of the submissions to ensure accurate reporting as required by the Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: 1. Enhanced Review of Period of Performance (POP): The Authority will implement a formal verification step requiring the Finance Department to confirm that all costs included in FEMA project worksheets were incurred within the approved period of performance prior to submission. This verification will specifically address payroll costs that span multiple pay periods. 2. Payroll Cost Allocation Controls: Payroll expenditures that cross fiscal periods or project periods of performance will be allocated based on actual days worked within the applicable period. Payroll reports will be reviewed to ensure that only eligible dates are included in each FEMA project. 3. Secondary Review: The Authority will require a secondary review by a finance staff member not involved in the initial preparation of the FEMA project worksheet to ensure accuracy, completeness, and compliance with FEMA eligibility requirements. 4. Correction of Identified Error: Management has corrected the duplicated payroll costs of $104,434 by removing them from the project ending June 30, 2022 and ensuring they are only reported in the project beginning July 1, 2022. Total FEMA expenditures reported on the Schedule of Expenditures of Federal Awards were adjusted accordingly. In addition, VCUHSA has voluntarily prepared a letter to VDEM to alert them of the identified issue and request assistance on next steps to return the funds that were received in error. The letter will be followed up by an email. The Finance team has also notified the CFO of both the findings of the audit and the related corrective actions. Name(s) of the contact person(s) responsible for corrective action: Min Cummings, VP of Finance and Accounting, 804-827-0545 Planned completion date for corrective action plan: Notification of error to be sent to VDEM within 60 days of audit completion. All other planned actions to be implemented immediately for any future costs and expenditures.

View Audit 385059

Finding 1171885 (2025-001)

Material Weakness 2025

Hope Network and Affiliates

MI

Allowable Costs / Cost Principles Cash Management HUD Housing Programs § 200.328 § 200.329

Hope Network acknowledges receipt of the Schedule of Findings and Questioned Costs included in the Single Audit Report dated January 21, 2026, identifying Finding #2025-001: Major Federal Award Finding- Reporting. Hope Network agrees with this finding and the recommended actions to be taken. Correct...

Hope Network acknowledges receipt of the Schedule of Findings and Questioned Costs included in the Single Audit Report dated January 21, 2026, identifying Finding #2025-001: Major Federal Award Finding- Reporting. Hope Network agrees with this finding and the recommended actions to be taken. Corrective Action Plan: Specific Corrective Action: Completion Date File all overdue semiannual performance reports. Completed Submit overdue required written request due upon final funds draw and project completion. Completed Finance department will review all grant agreements to ensure all required reporting, not just financial reports, are tracked and filed in timely within the terms of the grant agreement. 03/31/2026 Finance in conjunction with Hope Network Foundation will review existing grant procedures to develop a uniform process to be utilized across all Hope Network Affiliates. 06/30/2026 We are committed to resolving this issue.

View Audit 384872

Finding 1171871 (2025-001)

Material Weakness 2025

Central Texas Food Bank

TX

Allowable Costs / Cost Principles § 200.403 § 200.405

Finding Reference: 2025-001 – Activities Allowed or Unallowed Costs/Cost Principles — Food Distribution Cluster (TEFAP/CCC/CSFP) — Questioned Costs: 188,459 Responsible Person: Todd Frease, CFO Planned Actions & Timelines: 1. Allocation Methodology Correction (by 30 days from report issuance): We wi...

Finding Reference: 2025-001 – Activities Allowed or Unallowed Costs/Cost Principles — Food Distribution Cluster (TEFAP/CCC/CSFP) — Questioned Costs: 188,459 Responsible Person: Todd Frease, CFO Planned Actions & Timelines: 1. Allocation Methodology Correction (by 30 days from report issuance): We will redesign our administrative cost allocation model to remove the CCC double-counting and ensure each program’s share is based on documented, reasonable measures of benefit, consistent with 2 CFR §200.405. The revised workbook will include locked formulas and version control. 2. Secondary Review Control (effective next monthly close): We will implement a two-step review: preparer signs off on the allocation workbook, and an independent reviewer validates sources, bases, and formula ranges before posting entries or submitting claims. Evidence of review will be retained in monthly share drive by indicating approval through email. Anticipated Completion Date: Within 60 days of report issuance

View Audit 384843

Finding 1171852 (2025-001)

Material Weakness 2025

Pine Bush Central School District

NY

Allowable Costs / Cost Principles

Corrective Action Plan: While progress has been made in this area, the District agrees that the process still requires enhancements. The District will ensure that all applicable employees complete required certifications in accordance with federal guidelines. The personal activity reports will be co...

Corrective Action Plan: While progress has been made in this area, the District agrees that the process still requires enhancements. The District will ensure that all applicable employees complete required certifications in accordance with federal guidelines. The personal activity reports will be collected and reviewed on a monthly basis, and this practice will be the responsibility of Executive Director of Human Resources, Angela Wise-Landman. This practice was implemented as of 8/1/2025. Responsible Official: Angela Wise-Landman, Executive Director of Human Resources Anticipated Completion Date: 8/1/2025

View Audit 384814

Finding 1171846 (2025-001)

Material Weakness 2025

Legacy Community Health Services, Inc.

TX

Allowable Costs / Cost Principles

The Organization acknowledges the identified gap and concurs with the finding. The issue occurred due to personnel costs for certain employees being allocated based on a budgeted full-time equivalent basis without subsequent reconciliation to time and effort records. Legacy did not have a time and e...

The Organization acknowledges the identified gap and concurs with the finding. The issue occurred due to personnel costs for certain employees being allocated based on a budgeted full-time equivalent basis without subsequent reconciliation to time and effort records. Legacy did not have a time and effort certification process established until recently. All costs have been determined as allowable costs, and the finding is a result of administrative challenges. Steps have already been taken to remedy the issue. In July 2025, the Organization implemented a risk-based attestation process to capture time allocation across grant programs. Following this, The Director of Grant Accounting and Director of Payroll have established a time and effort certification process within the company's time-keeping software. This process, effective from Nov 14th, 2025, requires the certification to be signed by the employee and approved by their supervisor at the end of each pay period.

View Audit 384790

Finding 1171691 (2025-005)

Material Weakness 2025

Cumberland Community Unit School District 77

IL

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

The District will design and implement internal control procedures over the District's accounting processes to remedy this issue.

View Audit 384704

Finding 1171684 (2025-003)

Material Weakness 2025

South Gibson School Corporation

IN

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

FINDING 2025-003 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Amy Silva Contact Phone Number and Email Address: 812-753-4230 amy.silva@sgibson.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corr...

FINDING 2025-003 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Amy Silva Contact Phone Number and Email Address: 812-753-4230 amy.silva@sgibson.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The School Corporation has designated the Director of Special Education as the primary monitor responsible for overseeing nonpublic proportionate share expenditures. The Corporation Treasurer will provide the Director of Special Education and the Assistant Superintendent with a monthly budget-to-actual expenditure report for all active grants with nonpublic proportionate share requirements. This report will track the remaining unspent balance. The Director of Special Education will meet monthly with nonpublic school administrators to review the remaining fund balances, ensure services are being rendered, and project future expenditures. A final reconciliation will be performed within 30 days of each grant's end date to confirm all required funds were spent or a waiver was successfully obtained. Anticipated Completion Date: March 1, 2026

View Audit 384700

Finding 1171504 (2025-011)

Material Weakness 2025

City of Baltimore, Maryland

MD

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.430

Finding 2025-011 U.S. Department of Labor AL No. 17.258, 17.259, 17.278 Workforce Innovation and Opportunity Act (WIOA) Cluster Significant Deficiency in Internal Controls and Noncompliance over Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Payroll) Repeat Finding: No Auditee’...

Finding 2025-011 U.S. Department of Labor AL No. 17.258, 17.259, 17.278 Workforce Innovation and Opportunity Act (WIOA) Cluster Significant Deficiency in Internal Controls and Noncompliance over Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Payroll) Repeat Finding: No Auditee’s Corrective Action Plan: MOED follows the standard process and employees’ clock in/out at timeclock or enter their time; prior to pay period close, that time is reviewed and approved as required. MOED currently runs a report named "Audit TT - Workers with Time Submitted but Not Approved" two hours prior to the final payroll submission deadline to identify timesheets that have been submitted by employees but not yet approved as of the morning following the close of the payroll period. MOED HR will run the “Audit TT - Workers with Time Submitted but Not Approved” report 30 minutes prior to the payroll submission deadline and will ensure that all timesheets are reviewed and approved by supervisors prior to final payroll processing. Contact Person: David Hagans, Chief Financial Officer Jasmine Armstrong, Fiscal Operations Director Riley Grant, Chief Contracts Officer Completion Date: March 31, 2026

View Audit 384683

Finding 1171369 (2025-003)

Material Weakness 2025

Sheltercare

OR

Allowable Costs / Cost Principles Period of Performance Significant Deficiency

--Corrective Action Plan: Management has prepared a written procedure for the process used to bill payroll and related costs to the federal award programs. This process will be followed in the future to ensure this same mistake is not made. Once it was brought to management’s attention, they adjuste...

--Corrective Action Plan: Management has prepared a written procedure for the process used to bill payroll and related costs to the federal award programs. This process will be followed in the future to ensure this same mistake is not made. Once it was brought to management’s attention, they adjusted their process to get back “on track”, such that the correct two-week period is being billed each time and none are being repeated. Further, management will implement a more robust review of this process in case similar errors still exist. --Person Responsible: Phoebe Benjamin, Associate Finance Director --Date Implemented: 1/1/2026

View Audit 384658

Finding 1171365 (2025-004)

Material Weakness 2025

South Putnam Community School Corporation

IN

Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.403

FINDING 2025-004 Finding Subject: Child Nutrition Cluster - Allowable Costs/Cost Principles Federal Agency: Department of Agriculture Federal Program(s): School Breakfast Program, National School Lunch Program, Summer Food Service Program for Children Assistance Listing Numbers: 10.553, 10.555, 10.5...

FINDING 2025-004 Finding Subject: Child Nutrition Cluster - Allowable Costs/Cost Principles Federal Agency: Department of Agriculture Federal Program(s): School Breakfast Program, National School Lunch Program, Summer Food Service Program for Children Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Award Numbers and Years: FY2024, FY2025 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Allowable Costs/Cost Principals Audit Finding: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Allowable Costs/Costs Principles compliance requirement. The School Corporation entered into a Fixed Price meal Contract with a food service management company (FSMC). For each meal type, a fixed price was established and billed by the FSMC based on meal counts served. The School Corporation failed to compare the invoices received from the FSMC to the School Corporations software reports to ensure the number of meals invoiced agreed to the meals served. Two invoices with the FSMC were selected for testing totaling $213,048.96. . Contact Person Responsible for Corrective Action: Erin Roach Contact Phone Number and Email Address: 765-653-3119 eroach@sputnam.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The food service director will compare the invoices received from the FSMC to the School Corporations software reports prior to submission for payment. Anticipated Completion Date: February, 2026

View Audit 384655

Finding 1171316 (2025-003)

Material Weakness 2025

Eastern Greene Schools

IN

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

FINDING 2025-03 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Dr. Emily Dykstra Contact Phone Number and Email Address: 812-849-4481 / dykstrae@mitchell.k12.in.us Views of Responsible Officials: “We concur with the finding.” Descript...

FINDING 2025-03 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Dr. Emily Dykstra Contact Phone Number and Email Address: 812-849-4481 / dykstrae@mitchell.k12.in.us Views of Responsible Officials: “We concur with the finding.” Description of Corrective Action Plan: Mitchell Community Schools will utilize time and effort logs to track time that personnel spend working with non-public students. These logs will be turned into the Director of Special Education at the end of each school year, so that they will be available for future audits. A time and effort log template will be created by March 6, 2026 to be utilized with personnel for future IDEA grants. Anticipated Completion Date: March 6, 2026

View Audit 384594

Finding 1171305 (2025-002)

Material Weakness 2025

City of Asheville

NC

Subrecipient Monitoring Allowable Costs / Cost Principles

2026 HOME AUDIT 1. Establish Annual Monitoring Plan ● Action: Create a formalized Annual Monitoring Plan based on subrecipient risk assessments and total annual federal funding. ○ Tiered Oversight: ■ High Risk: Required on-site visits (or deep-dive virtual audits) ■ Medium/Low Risk: Desk reviews and...

2026 HOME AUDIT 1. Establish Annual Monitoring Plan ● Action: Create a formalized Annual Monitoring Plan based on subrecipient risk assessments and total annual federal funding. ○ Tiered Oversight: ■ High Risk: Required on-site visits (or deep-dive virtual audits) ■ Medium/Low Risk: Desk reviews and annual check-ins, sampling beneficiaries for eligibility. ■ Funding amount: Activities with $750,000 or more in federal funding (inclusive of all federal assistance) must undertake a single audit in addition to monitoring ● Completion Date: 2/27/2026 ● Responsible: Community Development Division Manager, Community Development Analysts ● Content: The plan will explicitly list which subrecipients are slated for which type of review each year. ● Documentation: Approved Annual Monitoring plan 2. Training and Capacity Building ● Action: All Community Development staff will undergo monitoring training ● Completion Date: 2/27/2026 ● Responsible: Community Development Manager, Community Development Analysts, Community Development Coordinator ● Content: Training will cover compliance requirements, identifying "red flags", confirming beneficiary eligibility, and internal monitoring Standard Operating Procedures and checklists. ● Documentation: Training logs and updated job aids. 3. Implementation & Execution ● Action: Initiate monitoring activities, prioritizing Higher Risk subrecipients identified in the initial assessment, and requesting single audits from subrecipients who received more than $750,000 in federal funding ● Completion Date: 6/30/2026 and on-going ● Responsible: Community Development Analysts, Community Development Coordinator ● Content: Analysts will produce written monitoring reports for each review following established policies and checklists for each program, which the Community Development Manager will sign off on. ● Documentation: Approved monitoring reports will be recorded and accessible for reference

View Audit 384579

Finding 1171134 (2025-002)

Material Weakness 2025

Pacific House, Inc.

CT

Allowable Costs / Cost Principles

Pacific House and Subsidiaries already started updating its timesheet. We plan to have a more detailed employee time sheet supporting the allocation of work performed and the distribution of wages to specific grant awards.

View Audit 384518

Finding 1170985 (2025-001)

Material Weakness 2025

Lamprey Health Care, Inc. and Friends of Lamprey Health Care, Inc.

NH

Allowable Costs / Cost Principles § 200.430

Finding: 2025-001 Condition Found: During testing of payroll allocated to the federal program, 1 of the 25 employees tested had salary charges which exceeded the Executive Level II compensation cap. Upon further review of the full population, a total of 3 employees were identified whose salary charg...

Finding: 2025-001 Condition Found: During testing of payroll allocated to the federal program, 1 of the 25 employees tested had salary charges which exceeded the Executive Level II compensation cap. Upon further review of the full population, a total of 3 employees were identified whose salary charges to the federal program exceeded the cap. Individual(s) Responsible for Corrective Action: Elizabeth Clark, Director of Finance Planned Corrective Action: Upon review of the salary allocation template, we found that the individuals whose salaries exceeded the Executive Level II compensation cap were allocated to grants without the application of appropriate proration. The result was that excess amounts could have been applied to grants in error. To identify and correct these errors, we will look back 12 months at all salaries charged against any grant that is funded directly or indirectly by federal funds. If any salaries in excess of the Executive Level II compensation cap were charged, we will reverse that charge and substitute another qualifying employee salary in its place. The procedure for allocating salaries to grants will be modified to include instructions to exclude employees with salaries exceeding the cap from grant allocations. Anticipated Completion Date: February 15, 2026

View Audit 384385

Finding 1170887 (2025-002)

Material Weakness 2025

Hood College of Frederick, Maryland and Affiliates

MD

Student Financial Aid Allowable Costs / Cost Principles Significant Deficiency § 200.303

Corrective Action Plan Finding Number: 2025-002 – Return of Title IV Funds Controls Finding: There is no evidence of a control in place by the College to review Return of Title IV Fund calculations. Corrective Action Planned Given the size of the Financial Aid Office, the College will implement comp...

Corrective Action Plan Finding Number: 2025-002 – Return of Title IV Funds Controls Finding: There is no evidence of a control in place by the College to review Return of Title IV Fund calculations. Corrective Action Planned Given the size of the Financial Aid Office, the College will implement compensating internal controls to ensure R2T4 calculations are accurate, timely, and compliant with federal regulations. Effective immediately, the College will implement the following controls: 1. Standardized R2T4 Processing All R2T4 calculations will be performed using the Department of Education Common Origination & Disbursement (COD) system to ensure consistent application of federal formulas. Official withdrawal dates will be confirmed using Registrar records prior to calculation. 2. Independent Post-Calculation Review Each R2T4 calculation will be reviewed by an individual other than the preparer, where feasible, or through supervisory review when staffing is limited. The review will confirm the accuracy of withdrawal dates, days attended, calculation inputs, and Title IV funds included. 3. Coordination and Reconciliation The Office of Financial Aid will coordinate with Student Accounts to ensure R2T4 results are applied correctly to the student account and that returned funds are processed within required timelines. 4. Documentation and Retention Evidence of review, including reviewer initials and date, will be retained for each R2T4 calculation. A simple R2T4 review checklist or log will be maintained. 5. Ongoing Oversight The Director of Financial Aid will conduct periodic spot checks to ensure R2T4 calculations and reviews are completed accurately and timely. Responsible Official: De Rodrick Jonkins, Director of Financial Aid Anticipated Completion Date: Implemented effective August 1, 2025 Additional Context The Director of Financial Aid assumed the role effective April 1, 2025, after prior corrective actions had been identified. While formal independent review controls were not documented during the audit period, there were no identified R2T4 compliance issues, late returns, or calculation errors. The corrective actions above are intended to formalize review processes and further reduce compliance risk.

View Audit 384186

Finding 1170880 (2025-001)

Material Weakness 2025

Hood College of Frederick, Maryland and Affiliates

MD

Matching / Level of Effort / Earmarking Student Financial Aid Allowable Costs / Cost Principles § 200.303

Corrective Action Plan Finding Number: 2025-001 – Enrollment Reporting Controls – Student Financial Aid Special Test Finding: There is no control in place by the College to review information submitted to NSLDS for student enrollment status changes. Corrective Actions Planned Given the size of the F...

Corrective Action Plan Finding Number: 2025-001 – Enrollment Reporting Controls – Student Financial Aid Special Test Finding: There is no control in place by the College to review information submitted to NSLDS for student enrollment status changes. Corrective Actions Planned Given the size of the Financial Aid Office, the College will implement compensating internal controls to ensure accurate and timely enrollment reporting while maintaining operational efficiency. Effective immediately, the College will implement the following controls: 1. Continued Use of the National Student Clearinghouse (NSC) The College will continue to rely on the National Student Clearinghouse as its third-party servicer for enrollment status reporting to NSLDS. 2. Independent Post-Submission Review On a monthly basis, the Office of Financial Aid will review NSC enrollment reporting confirmation files to verify that enrollment status changes were submitted to NSLDS accurately and within the required 60-day timeframe. This review will be performed by an individual other than the primary preparer, where feasible, or through supervisory review when staffing is limited. 3. Documentation and Retention Evidence of review, including reviewer initials and date, will be retained. A simple enrollment reporting review log will be maintained to document compliance. 4. Ongoing Oversight The Director of Financial Aid will conduct periodic spot checks to confirm controls are operating as intended. Responsible Official: De Rodrick Jonkins, Director of Financial Aid Anticipated Completion Date: February 1, 2026 Additional Context The Director of Financial Aid assumed the role effective April 1, 2025, after prior corrective actions had been initiated. While formal independent review controls were not documented during the audit period, there were no identified instances of late enrollment reporting or inaccurate enrollment status submissions to NSLDS. The corrective actions above are intended to formalize controls and ensure sustained compliance with federal requirements.

View Audit 384186

Finding 1170813 (2025-005)

Material Weakness 2025

North Daviess R-III School District

MO

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.516

Monitoring over federal awards – The District has corrected the reporting error for ESSER fund expenditures and is increasing its monitoring responsibilities to meet the needs of federal programs in the future. The District will be developing controls over reporting of federal funds to ensure these ...

Monitoring over federal awards – The District has corrected the reporting error for ESSER fund expenditures and is increasing its monitoring responsibilities to meet the needs of federal programs in the future. The District will be developing controls over reporting of federal funds to ensure these funds reconcile to the general ledger going forward.

View Audit 384070

Finding 1170812 (2025-004)

Material Weakness 2025

North Daviess R-III School District

MO

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles

Reporting - Federal Awards and Expenditures - ESSER – The District has corrected the reporting error for ESSER fund expenditures and is increasing its monitoring responsibilities to meet the needs of federal programs in the future. The District will be developing controls over reporting of federal f...

Reporting - Federal Awards and Expenditures - ESSER – The District has corrected the reporting error for ESSER fund expenditures and is increasing its monitoring responsibilities to meet the needs of federal programs in the future. The District will be developing controls over reporting of federal funds to ensure these funds reconcile to the general ledger going forward.

View Audit 384070

Finding 1170788 (2025-004)

Material Weakness 2025

Solen Public School District No. 3

ND

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.430

Contact Person David Drapeaux Corrective Action Plan This finding was resolved in FY2025 through a joint agreement between the District and NDDPI. The questioned costs of $86,171, that were discovered during a separate NDDPI monitoring process, were all returned to the state before the beginning of ...

Contact Person David Drapeaux Corrective Action Plan This finding was resolved in FY2025 through a joint agreement between the District and NDDPI. The questioned costs of $86,171, that were discovered during a separate NDDPI monitoring process, were all returned to the state before the beginning of the 2025 audit. This issue is resolved. Completion Date 05/08/25

View Audit 384048

Finding 1170752 (2025-002)

Material Weakness 2025

Marcellus Community Schools

MI

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

Auditor Description of Condition and Effect: During our audit procedures over the District’s payroll process, we noted that an employee’s wages were allocated to the food service function based on a straight percentage instead actual work performed. As a result of this condition, the District does n...

Auditor Description of Condition and Effect: During our audit procedures over the District’s payroll process, we noted that an employee’s wages were allocated to the food service function based on a straight percentage instead actual work performed. As a result of this condition, the District does not have proper controls in place over its procedures for allocation of wages. Auditor Recommendation: The District should utilize timecards to support the allocation of wages to federal functions. Corrective Action: The District will. Responsible Person: Jamie Johncock, Business Manager Anticipated Completion Date: June 30, 2025

View Audit 383945

Corrective Action Plans

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