Corrective Action Plans

Finding 1169547 (2025-001)

Material Weakness 2025

Flowing Wells Unified School District No. 8

AZ

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency

Finding Number: 2025‐001 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559, 10.582 Contact Person: Monique Mata, Chief Financial Officer Anticipated Completion Date: August 31, 2026 Planned Corrective Action: The District was not aware ...

Finding Number: 2025‐001 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559, 10.582 Contact Person: Monique Mata, Chief Financial Officer Anticipated Completion Date: August 31, 2026 Planned Corrective Action: The District was not aware of the change in calculating indirect cost for Child Nutrition Cluster. The District will review the indirect cost calculation for the affected fiscal year and confirm the amount of overcharged indirect costs. The District will determine the appropriate method for reimbursing or adjusting the $189,745 overcharge to the Child Nutrition Program. Any required repayment or journal entry correction will be completed. The District will update its indirect cost rate guidance to exclude food service management company payments exceeding $50,000 from the indirect cost base. The District will conduct an annual internal review of indirect cost calculations to ensure continued compliance with USDA and ADE guidance. The District will maintain communication with ADE School Finance and Health & Nutrition Services to stay current on guidance updates.

View Audit 382496

Finding 1169535 (2025-002)

Material Weakness 2025

New Visions Housing Corporation

CA

HUD Housing Programs Allowable Costs / Cost Principles

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification ...

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification of expenses. The Organization will further put in place a quarterly monitoring and review process to ensure the risk ratings of all financial institutions holding the Organization's cash and restricted cash are consistent with the minimally acceptable ratings established by the GNMA.

View Audit 382475

Finding 1169529 (2025-002)

Material Weakness 2025

Vista Homes Housing Corporation

NY

HUD Housing Programs Allowable Costs / Cost Principles

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification ...

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification of expenses. The Organization will further put in place a quarterly monitoring and review process to ensure the risk ratings of all financial institutions holding the Organization's cash and restricted cash are consistent with the minimally acceptable ratings established by the GNMA.

View Audit 382474

Finding 1169523 (2025-002)

Material Weakness 2025

Housing for the Multi-Handicapped Blind

NY

Allowable Costs / Cost Principles HUD Housing Programs Subrecipient Monitoring

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification ...

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification of expenses. The Organization will further put in place a quarterly monitoring and review process to ensure the risk ratings of all financial institutions holding the Organization's cash and restricted cash are consistent with the minimally acceptable ratings established by the GNMA.

View Audit 382473

Finding 1169520 (2025-002)

Material Weakness 2025

Great Expectations Housing Corporation

CA

HUD Housing Programs Allowable Costs / Cost Principles

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification ...

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification of expenses. The Organization will further put in place a quarterly monitoring and review process to ensure the risk ratings of all financial institutions holding the Organization's cash and restricted cash are consistent with the minimally acceptable ratings established by the GNMA.

View Audit 382472

Finding 1169504 (2025-002)

Material Weakness 2025

Bishop State Community College

AL

Allowable Costs / Cost Principles Period of Performance Significant Deficiency § 200.308 § 200.309 § 200.403

Finding 2025 – 002- Allowable Costs & Period of Performance (Significant Deficiency and Noncompliance) Management’s Response: Management concurs with the above finding, and the Fiscal Service Office will implement corrective action before September 2026. Management acknowledges the process gap as in...

Finding 2025 – 002- Allowable Costs & Period of Performance (Significant Deficiency and Noncompliance) Management’s Response: Management concurs with the above finding, and the Fiscal Service Office will implement corrective action before September 2026. Management acknowledges the process gap as indicated and noted in the above findings. To strengthen policies and procedures surrounding grant disbursements and ensure expenses are properly approved and allowable under the specific grant budget, the Fiscal Service Office along with the Human Resources Department will implement a process to properly document, review, and approve all allowable grant pay rates and salaries.

View Audit 382425

Finding 1169500 (2025-002)

Material Weakness 2025

Ankeny Community School District

IA

School Nutrition Programs Allowable Costs / Cost Principles

Response and Corrective Action Plan: The District will annually prepare the indirect cost charged to the program based on the actual fiscal year trial balance and the federal government MTDC requirements. The calculation process will implement a procedure to consider other adjustments necessary to b...

Response and Corrective Action Plan: The District will annually prepare the indirect cost charged to the program based on the actual fiscal year trial balance and the federal government MTDC requirements. The calculation process will implement a procedure to consider other adjustments necessary to be in compliance. The District will provide an estimate to the Board each June to ensure proper approval of fund transfers.

View Audit 382422

Finding 1169477 (2025-001)

Material Weakness 2025

Bevill State Community College

AL

Allowable Costs / Cost Principles

Finding 2025-001 – Allowable Costs (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Trio Cluster Criteria: 2 CFR 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also requ...

Finding 2025-001 – Allowable Costs (Significant Deficiency and Noncompliance) Information on the Federal Program: U.S. Department of Education, Trio Cluster Criteria: 2 CFR 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. Condition: We selected a sample of 25 payroll charges, containing 57 employees. Of those 57, 2 exceptions were noted related to documentation. One employee’s last letter of appointment indicated the position was 100% Trio; however, the employee was allocated only at 50%, and their new allocation was not documented in a new letter of appointment. And one employee had more than one position but the additional position added letter of appointment or change of status was not provided. Management’s Response: The 2 exceptions noted were documented and had appropriate approvals. However, the form of the documentation was not the form listed in the local procedures. Bevill State will ensure that the form of the documentation and the local procedures are consistent moving forward. Anticipated Completion Date: February 28, 2026

View Audit 382405

Finding 1169244 (2025-001)

Material Weakness 2025

Lone Star College System

TX

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

1. Immediate Compliance Review and Documentation Grants Accounting & Grants Development and Compliance (GDC) will conduct a comprehensive review of the five HEIA grants renewed for FY2026: • Verify each employee's current compensation source (institutional vs. grant funds) • Calculate the correct gr...

1. Immediate Compliance Review and Documentation Grants Accounting & Grants Development and Compliance (GDC) will conduct a comprehensive review of the five HEIA grants renewed for FY2026: • Verify each employee's current compensation source (institutional vs. grant funds) • Calculate the correct grant-funded compensation based on Level of Effort percentages • Determine the period of noncompliance for each grant • Document total amount of personnel costs that should have been charged to grants • Make adjusting entries in FY2026 as needed 2. Transition Personnel to Grant-Funded Payroll (if required) Grants Accounting will work with the Program Team to: • Establish split-funding arrangements for each affected employee based on their Level of Effort • Update payroll accounting codes to properly charge personnel costs to grant accounts • Ensure proper fund availability and budget alignment 3. Review Time and Effort Reporting Procedures and Update (if necessary) Establish compliant time and effort documentation as required by 2 CFR 200.430: • For employees working solely on one grant (100% effort): Implement semi-annual certification • For employees on multiple cost objectives: Review time and effort documentation to ensure proper payroll allocation; correct as needed • Re-train all affected personnel on time and effort reporting requirements • Establish quarterly review process to ensure accurate reporting 4. Budget Realignment and Prior Approval Requests For each affected grant: • Review current budget vs. actual expenditures • Determine if budget modifications are needed to accommodate personnel costs • Submit prior approval requests to Department of Education if required (2 CFR 200.308) • Coordinate with program officers for each grant as needed 5. Policy and Procedure Updates Develop and implement enhanced procedures to prevent recurrence: • Update standard operating procedures for setting up grant-funded positions • Establish pre-award checklist requiring coordination between Grants Office and HR • Implement quarterly reconciliation between GAN key personnel and actual payroll charges • Require GDC to sign-off on all personnel appointments for grant-funded positions • Update training and grant orientation information as needed 6. Training and Communication Provide comprehensive training to: • All current Project Directors/Managers on federal grant personnel requirements • HR staff on grant-funded position management • Grants Accounting staff on proper cost allocation and monitoring • Department chairs/supervisors who oversee grant-funded personnel 7. Ongoing Monitoring and Quality Assurance Implement enhanced monitoring procedures: • Monthly reconciliation of GAN key personnel vs. actual grant charges • Quarterly review of time and effort reports for completeness and accuracy • Annual internal review of grant personnel compliance 8. Communication with Federal Agencies As appropriate: • Submit required modifications or amendments to grant agreements • Provide documentation of compliance restoration

View Audit 382199

Finding 1169243 (2025-001)

Material Weakness 2025

Bayport-Blue Point Union Free School District

NY

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

2025-001. 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 ALN: 84.027 Special Education Preschool Grants ALN: 84.173 Condition: Subpart I, 2 CFR §200.4...

2025-001. 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 ALN: 84.027 Special Education Preschool Grants ALN: 84.173 Condition: Subpart I, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the performed.” The documentation should support the distribution of the employee’s compensation among specific activities if the employees work on more than one Federal award, or a Federal award and non-Federal award. The preparation of personnel activity reports (PAR) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, it was noted that in some instances, the District’s PARs were not signed by the employees. In addition, PARs for employees not charged 100% to a single grant were prepared retrospectively after year end rather than periodically throughout the year. Planned Corrective Action: PARS’s were sent to all employees on a bi-monthly basis beginning October 31, 2025. PAR’s that were not returned in a timely manner with signature were sent to the employee’s supervisor directly to obtain signature. Responsible Contact Person: Keri Loughlin Assistant Superintendent for Finance and Operations Bayport-Blue Point Union Free School District 189 Academy Street Bayport, New York 11705 Anticipated Completion Date: October 31, 2025

View Audit 382194

Finding 1169209 (2025-001)

Material Weakness 2025

Chicano Federation of San Diego County, Inc.

CA

Allowable Costs / Cost Principles

The following in our proposed corrective action plan for Finding 2025-001 in the FY 2025 Audit Report. Management will prepare and conduct an annual review of a formal cost allocation plan to ensure all costs are allocated accurately and in compliance with federal requirements. The plan will clearly...

The following in our proposed corrective action plan for Finding 2025-001 in the FY 2025 Audit Report. Management will prepare and conduct an annual review of a formal cost allocation plan to ensure all costs are allocated accurately and in compliance with federal requirements. The plan will clearly define allocation methodologies and ensure they are applied consistently across all programs. Further, management will evaluate the design of internal controls over the revenue recognition process to ensure all federal revenue is matched with allowable and documented operating costs.

View Audit 382083

Finding 1169208 (2025-002)

Material Weakness 2025

Betty Jean Kerr - People's Health Centers

MO

Internal Control / Segregation of Duties Special Tests & Provisions Subrecipient Monitoring

Section III Federal Award Findings and Questioned Costs Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care),) Grants for New and Expanded Services Under the Health Center Program, COVID-19 Grants for New and Expanded...

Section III Federal Award Findings and Questioned Costs Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care),) Grants for New and Expanded Services Under the Health Center Program, COVID-19 Grants for New and Expanded Services Under the Health Center Program Federal Assistance Listing Numbers: 93.224 and 93.527 Item 2025 002 Special Tests Recommendation The Center should establish a system of internal controls to ensure that all slide fee discounts are properly calculated based on family size and income. Repeat Finding Yes Action Taken The Finance Department will take the following steps to enhance the slide fee discounts process: 1. Policy Revision: the health center will revise its Sliding Fee Discount Policy to ensure alignment with HRSA requirements, including accurate discount calculation methodologies, annual updates to the sliding fee scale, and proper utilization of NextGen system functionality to support implementation 2. Staff Training: the health center will provide comprehensive training to all relevant staff on the revised Sliding Fee Discount Policy and procedures. 3. Training will emphasize correct discount calculations, required documentation, and income verification processes. A recurring training program will be implemented to ensure ongoing compliance for both new hires and existing employees. 3. Retrospective Review: the health center will conduct a retrospective review of patient files for the current fiscal year to confirm that all sliding fee discounts are appropriately supported by required documentation. Any identified discrepancies will be corrected in a timely manner. 4. Ongoing Monitoring: the health center will establish monthly internal audits of sliding fee discount determinations to monitor compliance. Audit results will be documented and reviewed by management to ensure corrective actions are taken as needed. Responsible Party: Chief Financial Officer Target Completion Date: 04/30/2026 If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please call: Javier Vallejo, CFO at (314)-482-0915. Sincerely yours, Javier Vallejo Chief Financial Officer

View Audit 382078

Finding 1169204 (2025-002)

Material Weakness 2025

South Spencer County School Corporation

IN

Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.403

FINDING 2025-002 Finding Subject: COVID-19 - Education Stabilization Fund - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: The School Corporation was unable to provide proper documentation for 5 out of the 25 claims selected for control testing. The School Corpo...

FINDING 2025-002 Finding Subject: COVID-19 - Education Stabilization Fund - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: The School Corporation was unable to provide proper documentation for 5 out of the 25 claims selected for control testing. The School Corporation was unable to provide proper documentation to support the determination of the amount of the teachers total salary that was allocated to the federal award. Contact Person Responsible for Corrective Action: Melissa Raaf Contact Phone Number and Email Address: (812) 649-2591 / missy.raaf@sspencer.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: In the future the School Corporation will ensure that all proper documentation is saved in a binder or electronically. Anticipated Completion Date: Effective FY 2025/2026

View Audit 382071

Finding 1169170 (2025-003)

Material Weakness 2025

Elverado Community Unit School District

CO

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

Finding Synopsis - Three vendor disbursements made under the Child Nutrition Cluster did not have the required purchase orders as required by the District's established internal control policies. Action Steps - The District will communicate with staff the importance of preparing purchase orders prio...

Finding Synopsis - Three vendor disbursements made under the Child Nutrition Cluster did not have the required purchase orders as required by the District's established internal control policies. Action Steps - The District will communicate with staff the importance of preparing purchase orders prior to making a purchase. We will establish a procedure in which the purchaser must review required documentation, inclusive of purchase orders, prior to making a purchase. Contact Person - Kevin Spain, Superintendent Anticipated Completion Date - December 31, 2025

View Audit 382037

Finding 1169142 (2025-001)

Material Weakness 2025

Goshen Central School District

NY

Allowable Costs / Cost Principles § 200.430

Corrective Action Plan: The District will implement a system of internal controls to ensure that all certifications are completed by employees working in the federal award programs and in a timely manner. Additionally, the District will ensure that time being charged to the grant agrees to actual ti...

Corrective Action Plan: The District will implement a system of internal controls to ensure that all certifications are completed by employees working in the federal award programs and in a timely manner. Additionally, the District will ensure that time being charged to the grant agrees to actual time spent working in the grant for each employee by sharing this information with building Principals to ensure that the information is accurate and they obtain the employee signature as soon as possible. Anticipated Completion Date:This was completed by October 31, 2025 by the District Treasurer, Assistant Superintendent for Business & PPS Director

View Audit 381964

Finding 1169134 (2025-001)

Material Weakness 2025

Achievement First Hartford Academy, Inc.

CT

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

Audit Finding Reference: 2025-001 – Title I Grants to Educational Agencies (LEAs) – ALN #84.010 Planned Corrective Action: We will revise our process to ensure the appropriate approval signatures are on Student Withdrawl Forms for transferred students, and for Graduated Students Listing. Name of Con...

Audit Finding Reference: 2025-001 – Title I Grants to Educational Agencies (LEAs) – ALN #84.010 Planned Corrective Action: We will revise our process to ensure the appropriate approval signatures are on Student Withdrawl Forms for transferred students, and for Graduated Students Listing. Name of Contact Person: Bob Haynes Interim Controller Bobhaynes@achievementfirst.org Anticipated completion date: December 9, 2025

View Audit 381953

Finding 1169132 (2025-001)

Material Weakness 2025

Amistad Academy

CT

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

Audit Finding Reference: 2025-001 – Title I Grants to Educational Agencies (LEAs) – ALN #84.010 Planned Corrective Action: We will revise our process to ensure the appropriate approval signatures are on Student Withdrawl Forms for transferred students, and for Graduated Students Listing. Name of Con...

Audit Finding Reference: 2025-001 – Title I Grants to Educational Agencies (LEAs) – ALN #84.010 Planned Corrective Action: We will revise our process to ensure the appropriate approval signatures are on Student Withdrawl Forms for transferred students, and for Graduated Students Listing. Name of Contact Person: Bob Haynes Interim Controller Bobhaynes@achievementfirst.org Anticipated completion date: December 9, 2025

View Audit 381949

Finding 1169130 (2025-001)

Material Weakness 2025

Achievement First Brooklyn Charter Schools

CT

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

We will revise our process to ensure the appropriate approval signatures are on Student Withdrawl Forms for transferred students, and for Graduated Students Listing.

View Audit 381947

Finding 1169087 (2025-007)

Material Weakness 2025

Wautoma Area School District

WI

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

2025-007 – Medical Assistance Program – Activities Allowed and Allowable Costs/Cost Principles – The District is aware of the licensing requirements and will attempt to compile the information necessary in the future. Responsible Official – Karl Morrin, District Administrator Anticipated Completion ...

2025-007 – Medical Assistance Program – Activities Allowed and Allowable Costs/Cost Principles – The District is aware of the licensing requirements and will attempt to compile the information necessary in the future. Responsible Official – Karl Morrin, District Administrator Anticipated Completion Date – This finding is expected to be resolved for the 2026 annual financial report.

View Audit 381833

Finding 1169071 (2025-001)

Material Weakness 2025

ALASKA ESKIMO WHALING COMMMISSION

AK

Allowable Costs / Cost Principles Cash Management Reporting

Management agrees with the finding and has implemented redundant scheduled reminders for the appropriate due dates for the next fiscal year.

View Audit 381778

Finding 1169047 (2025-002)

Material Weakness 2025

Parents As Teachers National Center, Inc.

MO

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

View of Responsible Officials and Planned Corrective Actions: The Center concurs with the finding. We acknowledge that our current accounting systems are outdated and lack the functionality required to support accurate and efficient expense allocations. We are in the final stages of selecting a new ...

View of Responsible Officials and Planned Corrective Actions: The Center concurs with the finding. We acknowledge that our current accounting systems are outdated and lack the functionality required to support accurate and efficient expense allocations. We are in the final stages of selecting a new accounting system that which enhance our financial reporting capabilities and improve allocation accuracy. In the interim, the Center has implemented manual procedures to mitigate the risk of misallocations. Specifically, credit card purchases are now being manually entered into the general ledger to ensure each transaction is accurately matched to its corresponding receipt. This process provides greater transparency and reduces the likelihood of erroneous allocations. Additionally, we continue to utilize our Purchase Order process, which requires pre-approval by management for all purchases. This control ensures that expenditures are authorized and properly aligned with program objectives prior to being incurred. These interim measures, combined with our upcoming system upgrade, are intended to strengthen our internal controls and ensure that expenses charged to Federal awards are allocable in accordance with 2 CFR § 75.405.

View Audit 381737

Finding 1169046 (2025-001)

Material Weakness 2025

Parents As Teachers National Center, Inc.

MO

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

View of Responsible Officials and Planned Corrective Actions: We acknowledge that the current payroll expense allocation process is highly manual and susceptible to errors due to its subjective nature. The process of reviewing and editing data for upload to the general ledger (GL) relies heavily on ...

View of Responsible Officials and Planned Corrective Actions: We acknowledge that the current payroll expense allocation process is highly manual and susceptible to errors due to its subjective nature. The process of reviewing and editing data for upload to the general ledger (GL) relies heavily on manual intervention, increasing the risk of misallocations. To address this, ADP is in the process of developing a custom payroll report that will include all required fields to accurately allocate payroll expenses to the appropriate programs each pay period. This report will replace the current process, which depends on manually referencing saved reports that may contain outdated information. In addition, our monthly payroll reconciliation procedures are being updated to incorporate a comparison between data from the ADP reports and the GL. By using pivot tables to analyze raw data, we aim to enhance the accuracy of our payroll allocations and provide greater confidence in the validity of expenses charged to federal awards. These corrective actions are intended to strengthen our internal controls and ensure full compliance with the allocability requirements outlined in 2 CFR § 75.405.

View Audit 381737

Finding 1169044 (2025-002)

Material Weakness 2025

Lafayette School Corporation

IN

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

FINDING 2025-002 Finding Subject: Special Education Cluster (IDEA)- Earmarking Summary of Finding: The School Corporation is a member of the Greater Lafayette Area Special Services Cooperative (Cooperative). During fiscal years 2023-2024, the Cooperative operated the special education programs and s...

FINDING 2025-002 Finding Subject: Special Education Cluster (IDEA)- Earmarking Summary of Finding: The School Corporation is a member of the Greater Lafayette Area Special Services Cooperative (Cooperative). During fiscal years 2023-2024, the Cooperative operated the special education programs and spent the federal money on behalf of all of its members. As the grant agreements were between the Indiana Department of Education (IDOE) and each member school, the School Corporation was responsible for ensuring and providing oversight of the Cooperative. However, there was inadequate oversight performed by the School Corporation in order to ensure compliance with the Matching, Level of Effort, Earmarking compliance requirement. The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the earmarking requirements. The Cooperative did not have adequate procedures in place to ensure that the required level of expenditures for nonpublic school students with disabilities was met for each member school. The Cooperative did not have effective internal controls to ensure nonpublic school expenditures were appropriately identified and reported. The Non-Public Proportionate Share expenditures for the 22611-021-PN01, 22611-021-ARP, 22619-021-ARP, 23611-021-PN01, and 23619-021-PN01 grant awards could not be verified for the individual member schools. Total grant expenditures were posted as expended. The nonpublic proportionate share expenditures were determined by applying a percentage to the nonpublic school budgeted expenditures. As such, we were unable to identify if the minimum amount per the grant awards was expended and properly reported to the IDOE as required. The lack of internal controls and noncompliance were isolated to the 22611-021-PN01, 22611-021-ARP, 22619-021-ARP, 23611-021-PN01, and 23619-021-PN01 grant awards. Contact Person Responsible for Corrective Action: Lissa Stranahan Contact Phone Number and Email Address: (Phone) 765-771-6013 (Email) lstranahan@lsc.k12.in.us Views of Responsible Officials: We concur with the finding. The Greater Lafayette Area Special Services (GLASS)and Local Education Agency, Lafayette School Corporation, concur with the audit finding for Earmarking. GLASS did not have adequate procedures in place to ensure that the required level of expenditures for non-public school students with disabilities was met for each member school. The Cooperative did not have effective internal controls to ensure non-public school expenditures were appropriately identified and reported. The methodology used by the Cooperative to monitor non-public proportionate share expenditures was based upon a percentage for each school corporation that comprises the Cooperative rather than basing the expenditures off of the grant award for each non-public school within the geographical boundaries of the school corporations. While all proportionate share funds were expended, it was problematic in determining if the minimum amount per the grant awards was expended and properly reported prior to July 1, 2024. INDIANA STATE BOARD OF ACCOUNTS 28 Description of Corrective Action Plan: The former Director of GLASS retired June 30, 2023. Upon hire on July 1, 2023, the new director immediately implemented measures to correct the previous methodology used at GLASS. Non-public proportionate share funds are identified and reported based upon the grant award for each school corporation. The expenditures are based upon the geographical location of the non-public school and the corresponding public school corporation, not based upon the “home” school corporation of the student. This process was implemented and descriptions were included on the ledgers to identify non-public school proportionate share for grants that were initiated during the FY 2024-2025 school year. Anticipated Completion Date: The corrective action was already put into place on July 1, 2023 and implemented with FY 2024-2025. The audit finding reflects the previous grant cycle for 2022 grants and 2023 grants, which is prior to this action taken.

View Audit 381720

Finding 1169029 (2025-002)

Material Weakness 2025

Detroit Regional Chamber Foundation, Inc.

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

2025-002 – Failure to Implement Required Written Policies Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles and Cash Management). Program. Economic Development Cluster; Economic Adjustment Assistance; U.S. Department o...

2025-002 – Failure to Implement Required Written Policies Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles and Cash Management). Program. Economic Development Cluster; Economic Adjustment Assistance; U.S. Department of Commerce; ALN 11.307; Passed through SEMCA; Award Number EDA-HDQ-ARPBBB-2021-2006976. Condition. There are no written policies in place covering payments or travel costs. Effect. As a result of this condition, the Foundation did not fully comply with the Uniform Guidance. Corrective Action Plan. Will document/implement payment policy including travel costs Contact Person Responsible. Jason Jurczyk, VP, Finance and Revenue Growth Anticipated Completion Date. January 2026

View Audit 381713

Finding 1169028 (2025-001)

Material Weakness 2025

Detroit Regional Chamber Foundation, Inc.

MI

Allowable Costs / Cost Principles Reporting Significant Deficiency

2025-001 – Lack of Independent Review and Approval of Reporting Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Control over Compliance (Reporting). Program. Economic Development Cluster; Economic Adjustment Assistance; U.S. Department of Commerce; ALN 11.307; Passed throu...

2025-001 – Lack of Independent Review and Approval of Reporting Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Control over Compliance (Reporting). Program. Economic Development Cluster; Economic Adjustment Assistance; U.S. Department of Commerce; ALN 11.307; Passed through SEMCA; Award Number EDA-HDQ-ARPBBB-2021-2006976. Condition. The Foundation is required to submit semi-annual reports on the grant expenditures, and we noted that these reports are not subjected to an independent review and approval process. Effect. Although no reporting errors were found, the Foundation was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Corrective Action Plan. The monthly Financial Status Report will be reviewed by both the CFO and Senior Director, MichAuto before being submitted for reimbursement. Contact Person Responsible. Jason Jurczyk, VP, Finance and Revenue Growth Anticipated Completion Date. October 2025

View Audit 381713

Corrective Action Plans

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