Corrective Action Plans

Finding 1155864 (2025-001)

Material Weakness 2025

MI

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Condition: We noted no formal evidence that the stated control to ensure performance of required inspections prior to contract approval had been implemented effectively in one instance. We also noted no formal evidence that the stated control to verify inspections were performed upon project complet...

Condition: We noted no formal evidence that the stated control to ensure performance of required inspections prior to contract approval had been implemented effectively in one instance. We also noted no formal evidence that the stated control to verify inspections were performed upon project completion to ensure that work was carried out in accordance with contract specifications had been implemented effectively in one instance. Planned Corrective Action: Staff will review folders at various stages of the project to ensure all records of inspections at both the beginning and end of the project are in the file. Staff has already set up either bi-weekly or monthly meetings (depending on project activity levels) to report on the status of ongoing projects. These meetings were intended to help staff keep current projects in line with the overall project budget (i.e. not obligating funds beyond what’s available). Using these same meetings to check project files for all necessary records will be an adjustment of negligible effort. In instances where there is a sizable gap between portions of a project (e.g. part of the project can’t be completed until spring) staff will consider closing out the completed portion of the project and completing a final inspection on the balance of the job at a later date. Contact person responsible for corrective action: Edwin Manninen, Matthew Wallace Anticipated Completion Date: Immediately

View Audit 368245

Finding 1155821 (2025-001)

Material Weakness 2025

Gooding Senior Housing Association INC

ID

Reporting Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment § 200.512

Finding 2025-001 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2025 Federal agency: United States Department of Agriculture Compliance Requirement: Activities allowed or unallowed, allowable costs/ cash management, eligibility, equipment, perio...

Finding 2025-001 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2025 Federal agency: United States Department of Agriculture Compliance Requirement: Activities allowed or unallowed, allowable costs/ cash management, eligibility, equipment, period of performance, procurement, program income, reporting, special tests Questioned Costs: None Name of contact person and title: Pat Bishop, President Condition and Context: The auditee did not submit the required audit reports to the Federal Audit Clearinghouse (FAC) and Rural Development (RD) in a timely manner. Specifically:  The 2023 Audit Report was not submitted to the FAC as required under 2 CFR Part 200, Subpart F.  The 2024 Audit Report was submitted past the regulatory deadline to both the FAC and RD. Management Response: Management plans to develop and implement an internal audit compliance calendar with clearly defined submission deadlines for all audit-related deliverables, including due dates for the FAC and RD and Create an internal checklist and sign-off process to confirm that each audit deliverable has been submitted to all required agencies and portals. Status: In progress Anticipated Completion Date: Estimated 2025

View Audit 368214

Finding 1153768 (2025-003)

Material Weakness 2025

Housing Authority of the City of Meadville

PA

HUD Housing Programs Allowable Costs / Cost Principles Cash Management

HACM Management will sign all Capital Fund vouchers going forward.

View Audit 366863

Finding 1153164 (2025-003)

Material Weakness 2025

Outpatient Medical Center, Inc.

LA

Allowable Costs / Cost Principles Questioned Costs § 200.403

2025-003 Period of Performance (repeat of finding 2024-005) Corrective action planned: Beginning April 1, 2025, when the organization was made aware of this finding in last year’s audit, OMC took immediate corrective actions. The CFO/Designee will monitor expenses, and a separate prepaid schedule ha...

2025-003 Period of Performance (repeat of finding 2024-005) Corrective action planned: Beginning April 1, 2025, when the organization was made aware of this finding in last year’s audit, OMC took immediate corrective actions. The CFO/Designee will monitor expenses, and a separate prepaid schedule has been developed to track future period expenses. OMC’s current CFO/Designee has a basic understanding of GAAP. All coding will be reviewed and approved by an authorized, knowledgeable CFO/Designee. Anticipated completion date: Corrective Action taken on April 1, 2025. Contact person responsible for corrective action: Allen Boyd, Director of Fiscal Operations

View Audit 366393 Questioned Costs: $1

Finding 1153162 (2025-002)

Material Weakness 2025

Outpatient Medical Center, Inc.

LA

Allowable Costs / Cost Principles Questioned Costs

2025-002 Allowable Costs/Cost Principles (repeat of finding 2024-004) Corrective action planned: Beginning April 1, 2025, when the organization was made aware of this finding in last year’s audit, OMC took immediate corrective actions. The CFO/Designee will continue to monitor to assure compliance w...

2025-002 Allowable Costs/Cost Principles (repeat of finding 2024-004) Corrective action planned: Beginning April 1, 2025, when the organization was made aware of this finding in last year’s audit, OMC took immediate corrective actions. The CFO/Designee will continue to monitor to assure compliance with documentation for all federal expenditures, whether payroll or procurement transactions. All supporting documentation is currently being retained electronically and linked to the corresponding transaction in the financial system. Anticipated completion date: Corrective Action taken on April 1, 2025. Contact person responsible for corrective action: Allen Boyd, Director of Fiscal Operations

View Audit 366393 Questioned Costs: $1

Finding 576088 (2025-003)

Significant Deficiency 2025

Shelby Township

MI

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

Finding 2025-003: Account Reconciliation Procedures Type of Finding: Control U.S Department of Housing and Urban Development Direct program Assistance Listing Number: 14.251 Award Numbers: B-24-CP-MI-1149 Award Year End: August 31, 2032 Recommendation: The Township should establish proced...

Finding 2025-003: Account Reconciliation Procedures Type of Finding: Control U.S Department of Housing and Urban Development Direct program Assistance Listing Number: 14.251 Award Numbers: B-24-CP-MI-1149 Award Year End: August 31, 2032 Recommendation: The Township should establish procedures to verify that expenditures are properly tracked by individual grant to ensure that individual disbursements are not allocated to more than one grant. Action Taken: The Township will create a spreadsheet to track expenditures by individual grants that will be updated as individual disbursements and receipts occur. Responsible Person and Anticipated Completion Date: Township Treasurer, March 31, 2026. If the Michigan Strategic Fund has questions regarding this plan, please call Rebecca Griffin at 231-861-5853.

View Audit 365991

Finding 575602 (2025-004)

Significant Deficiency 2025

Village of Shelby

MI

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

Finding 2025-004: Coronavirus State and Local Fiscal Recovery Funds Reporting Procedures Type of Finding: Control U.S. Department of Treasury Pass-through Entities: The Right Place, Inc. and Michigan Department of Treasury. Assistance Listing Number: 21.027 Award Numbers: COVID-19 Revitaliza...

Finding 2025-004: Coronavirus State and Local Fiscal Recovery Funds Reporting Procedures Type of Finding: Control U.S. Department of Treasury Pass-through Entities: The Right Place, Inc. and Michigan Department of Treasury. Assistance Listing Number: 21.027 Award Numbers: COVID-19 Revitalization and Placemaking Grant, COVID-19 American Rescue Plan Act Award Year End: June 30, 2026 and December 31, 2026 Specific Requirement: (L.) Reporting Recommendation: The Village should follow established procedures to require the documented review and approval of both RAP and ARPA grant reports by an individual with adequate skills, knowledge, and experience prior to submission. Action Taken: The Village is implementing a new procedure requiring that ARPA grant reports be reviewed and approved by a designated reviewer before submission in addition to RAP grant reports. The reviewer, who must possess the appropriate skills, knowledge, and experience relevant to the report's content, will ensure that the information is accurate, complete, and compliant with organizational standards and regulatory requirements. Responsible Person and Anticipated Completion Date: The Village Clerk/Treasurer will oversee the implementation of this plan by February 28, 2026. If the Michigan Strategic Fund has questions regarding this plan, please call Phillip Morse at 231-861-4401.

View Audit 365594

Finding 574697 (2025-005)

None 2025

Village of Marion

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

This finding is due to the Village not having formal written policies in place required by Uniform Guidance. The Village is now aware that these policies are required and will adopt all necessary policies. The Village does not believe that there were any actual nonallowable costs or transactions bec...

This finding is due to the Village not having formal written policies in place required by Uniform Guidance. The Village is now aware that these policies are required and will adopt all necessary policies. The Village does not believe that there were any actual nonallowable costs or transactions because of the lack of written policies as required by Uniform Guidance. The Village will adopt all necessary policies to be in compliance. The person responsible for the corrective action is the Village President. The anticipated completion date of the corrective action plan is before the end of the 2026 fiscal year. The plan for adherence is the Council will review all proposed policies and adopt them, the Council will also monitor any changes to policy requirements to ensure that they are in compliance in the future.

View Audit 364976

Finding 1241786 (2024-005)

Material Weakness 2024

College of the Marshall Islands

MH

Allowable Costs / Cost Principles § 200.303 § 200.403

The College acknowledges the finding and recognizes the need to strengthen internal controls over payroll expenditures charged to federal programs, particularly in ensuring that employee compensation, approved timesheets, leave payments, and related benefits are adequately supported and properly aut...

The College acknowledges the finding and recognizes the need to strengthen internal controls over payroll expenditures charged to federal programs, particularly in ensuring that employee compensation, approved timesheets, leave payments, and related benefits are adequately supported and properly authorized. During FY2025–FY2026, the College continued implementing corrective measures to improve compliance with federal allowable cost requirements. These efforts include strengthening documentation and record retention procedures through the use of a cloud-based filing system, improving verification of employment contracts and approved pay rates, and reinforcing supervisory review and approval of payroll transactions. The College continues to strengthen coordination among the Human Resources, Payroll, and Grants Offices to ensure that expenditures charged to federal programs are properly documented, authorized, and consistent with applicable federal requirements. Additionally, ongoing staff training and improved oversight are intended to address the identified deficiencies and prevent recurrence of similar findings in future audits.

View Audit 415778

Finding 1241659 (2024-003)

Material Weakness 2024

Morton-Sioux Special Education Unit

ND

Allowable Costs / Cost Principles Reporting § 200.512

Contact Person – Julie Ketterling, Director Corrective Action Plan – This finding is noted together with the Board. The Unit will work to ensure timely submission of the data collection form in the future. Completion Date – The Unit will work to submit timely for the June 30, 2026 audit.

View Audit 415723

Finding 1241617 (2024-005)

Material Weakness 2024

Wagoner County

OK

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

Upon OSAI's recommendation, we are putting into place protocols in an official policy and procedures manual specific to all Federal Crants. With their guidance, future Federal Crants will be better documenled and monilored in accordance with this policy.

View Audit 415663

Finding 1241616 (2024-004)

Material Weakness 2024

Wagoner County

OK

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Subrecipient Monitoring

Upon OSAI's recommendation. we are putting into place protocols in an official policy and procedures manual specific 1o all Federal Crants. With their guidance, future Federal Grants will be better documenled and monitored in accordance with this policy.

View Audit 415663

Finding 1241548 (2024-007)

Material Weakness 2024

Detroit Central City Cmh, Inc.

MI

Allowable Costs / Cost Principles

Corrective Action Planned: Beginning in FY25, the Organization implemented standardized housing compliance procedures, including the use of checklists during lease execution and annual recertification to ensure required master leases, subleases, and supporting documentation are obtained and maintain...

Corrective Action Planned: Beginning in FY25, the Organization implemented standardized housing compliance procedures, including the use of checklists during lease execution and annual recertification to ensure required master leases, subleases, and supporting documentation are obtained and maintained. Management has also strengthened document retention practices and periodic file reviews to promote complete and accessible tenant files. Management’s Response: Management agrees with the finding. Historical personnel turnover and prior documentation retention practices contributed to incomplete tenant files. Since FY25, enhanced procedures and oversight have been implemented to improve documentation compliance and retention. The audit identified no instances of noncompliance and confirmed that rents tested were reasonable. Management's corrective actions are focused on ensuring required supporting documentation is consistently maintained and readily available for future review.

View Audit 415601

Finding 1241421 (2024-007)

Material Weakness 2024

TOWN OF GORHAM

NH

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

The Town will develop and formally adopt written policies and procedures addressing Uniform Guidance requirements, including allowable costs, cash management, travel, procurement, suspension and debarment, equipment and inventory, and subrecipient monitoring. Policies will include defined responsibi...

The Town will develop and formally adopt written policies and procedures addressing Uniform Guidance requirements, including allowable costs, cash management, travel, procurement, suspension and debarment, equipment and inventory, and subrecipient monitoring. Policies will include defined responsibilities and internal controls and will be revieved periodically.

View Audit 415517

Finding 1241302 (2024-002)

Material Weakness 2024

Beasley-Brown Community Development Corporation

TX

Allowable Costs / Cost Principles § 200.403 § 200.404

4. Allowable Costs / Cost Principles Type of Finding: Other Noncompliance Finding Management acknowledges the findings related to compliance with Uniform Guidance requirements under 2 CFR §§ 200.403 and 200.404, which require that costs charged to federal awards be allowable, reasonable, allocable, ...

4. Allowable Costs / Cost Principles Type of Finding: Other Noncompliance Finding Management acknowledges the findings related to compliance with Uniform Guidance requirements under 2 CFR §§ 200.403 and 200.404, which require that costs charged to federal awards be allowable, reasonable, allocable, and adequately supported. During audit testing, it was identified that $695 in late fees and penalties were charged to the federal program. While properly supported by documentation, these costs are unallowable under federal regulations. As a result, questioned costs totaling $26,656 were identified. Corrective Action Plan - Management agrees that unallowable costs were charged due to a breakdown in expenditure review controls. To address this issue, the Organization will implement: - Mandatory training for staff responsible for coding and approving federal expenditures regarding allowable cost requirements. - Implementation of a secondary review process for all federal expenditures prior to posting. - Development of an allowable cost checklist to be used during expenditure approval. - Enhanced supervisory review of all costs charged to federal awards. These controls will be implemented immediately and applied to all federal programs going forward.

View Audit 415435

Finding 1241235 (2024-002)

Material Weakness 2024

Black Womens Health Imperative

DC

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403 § 200.430

Audit Finding Number 2024-002 Audit Finding Title Activities Allowed or Unallowed, Allowable Costs/Cost Principles Planned Corrective Action Other than Personnel Services: In April of 2025, we discontinued the previous credit card usage processes and began using Ramp for all credit card purchases. T...

Audit Finding Number 2024-002 Audit Finding Title Activities Allowed or Unallowed, Allowable Costs/Cost Principles Planned Corrective Action Other than Personnel Services: In April of 2025, we discontinued the previous credit card usage processes and began using Ramp for all credit card purchases. The Ramp system requires employees to upload an itemized receipt, document the business reason for the expense, and select the grant that expense should be coded to. Each transaction is approved by the employee’s manager and reviewed by the AP staff before it is synched over to the general ledger. If a transaction cannot be properly documented the system will notify the employee of the need for repayment. The repayment is drafted from the employee’s personal bank account, and the expense is reversed in the general ledger. Indirect Costs: In Year 1 $200,000 was deemed unallowable because while there was a provisional indirect rate agreement in place for 28.50%, the CDC did not adjust the NOA to reflect the update. Going forward, when there are any approved changes to the NOA, BWHI will ensure that those changes are reflected in an updated NOA. In addition, in 2025, the new accounting team is charging indirect costs as a percentage of direct expenses incurred during the period of draw down. Each drawdown will be prepared and then reviewed by a separate employee before submission. Preparation and review are time stamped and documented in the CDC payment system. Personnel Services: In July 2026, we formalized our review process for all payroll transactions. Each payroll is reviewed for completeness and reasonableness and is reconciled on each payroll run before posting to the general ledger. We are currently working on our employee training that will require employees to document their weekly time and charge hours to grants using actual timesheets. Those timesheets will be reviewed and approved by their manager before the payroll run. This process will be in place effective in December 2026. Name(s) and title(s) of contact person(s) responsible for corrective action Kim Cockerham, Sr. Director of Finance and Accounting Desarae Kirtz, Sr. Director HR (personnel services)

View Audit 415344

Finding 1240850 (2024-003)

Material Weakness 2024

State of Kosrae

FM

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

We partially agree with this Finding which cited certain teachers who had only official transcripts on file and no diplomas. Before the JEMCO resolution came out, we were not required to file diplomas in our personnel files, so most of our teachers do not have diplomas on file. We had sought concurr...

We partially agree with this Finding which cited certain teachers who had only official transcripts on file and no diplomas. Before the JEMCO resolution came out, we were not required to file diplomas in our personnel files, so most of our teachers do not have diplomas on file. We had sought concurrence from our grant manager on whether we could use official transcripts in lieu of proof of degrees for existing teachers without degrees and for new hires to get them on board sooner. Our pool of personnel to select teachers from is limited, and it is challenging to get quality teachers with degrees. He concurred that we use transcripts as long as they are the official ones from the institutions and clearly state that the students have been awarded the required degrees and that the students’ names are written clearly on them. In the meantime, each student/teacher will continue to provide a copy of the required degree so we can have it on file. I think this is the process we are still using and if it is not correct, please let us know.

View Audit 415177

Finding 1240846 (2024-011)

Material Weakness 2024

State of Kosrae

FM

Allowable Costs / Cost Principles Subrecipient Monitoring HUD Housing Programs § 200.302 § 200.403 § 200.430

Pohnpei has agreed to the findings and is committed to implementing the recommendations. Ongoing Director of Treasury and Administration Sihna N. Lawrence sihna.lawrence@pohnpeidota.fm

View Audit 415176

Finding 1240844 (2024-009)

Material Weakness 2024

State of Kosrae

FM

Allowable Costs / Cost Principles § 200.403 § 200.430 § 200.441

Pohnpei has agreed to the findings and is committed to implementing the recommendations. Ongoing Director of Treasury and Administration Sihna N. Lawrence sihna.lawrence@pohnpeidota.fm

View Audit 415176

Finding 1240843 (2024-002)

Material Weakness 2024

State of Kosrae

FM

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.403 § 200.430

Pohnpei has agreed to the findings and is committed to implementing the recommendations. Ongoing Director of Treasury and Administration Sihna N. Lawrence sihna.lawrence@pohnpeidota.fm

View Audit 415176

Finding 1240836 (2024-007)

Material Weakness 2024

State of Kosrae

FM

Reporting Allowable Costs / Cost Principles

Pohnpei has agreed to the findings and is committed to implementing the recommendations. Ongoing Director of Treasury and Administration Sihna N. Lawrence sihna.lawrence@pohnpeidota.fm

View Audit 415176

Finding 1240832 (2024-004)

Material Weakness 2024

State of Kosrae

FM

Subrecipient Monitoring Special Tests & Provisions Allowable Costs / Cost Principles

Pohnpei has agreed to the findings and is committed to implementing the recommendations. Ongoing Director of Treasury and Administration Sihna N. Lawrence sihna.lawrence@pohnpeidota.fm

View Audit 415176

Finding 1240717 (2024-005)

Material Weakness 2024

City of Cortland

NY

Allowable Costs / Cost Principles Reporting

Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Criteria: Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §2...

Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Criteria: Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: The deadline was not met on a timely basis for the year ended December 31, 2024. Cause: Staffing shortages caused the delays in financial reporting. Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Response: Due to the timing of the completion of the December 31, 2024, reporting package, it is expected the December 31, 2025, reporting package will also be filed after the deadline. Filings for subsequent years are expected to be filed timely. Corrective Action Plan: The City is improving processes over financial reporting, including entering all transactions in the system of record and working on timely bank reconciliations. This will ensure the City’s records are complete and accurate, which will allow for audits to be completed timely. Anticipated Completed Date: September 30, 2027. Responsible Contact Person: Scott Steve, Mayor

View Audit 415083

Finding 1240521 (2024-008)

Material Weakness 2024

Kitsap Community Resources

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency § 200.430

2024-008 Significant Deficiency in Internal Control and Compliance over Major Programs Management Response: KCR is working on updating all internal controls, as we have new members throughout the organization, by providing cross training to identify who is responsible for specific functions, to addr...

2024-008 Significant Deficiency in Internal Control and Compliance over Major Programs Management Response: KCR is working on updating all internal controls, as we have new members throughout the organization, by providing cross training to identify who is responsible for specific functions, to address the specific finding, to prevent further incidents KCR is requiring that anytime a change is made on an employee a new PAF is required from the program, the current PAF form will updated and completion date 11/30/2026. Staff responsible: CFO Irmgard Davis irmgardd@kcr.org.

View Audit 414976

Finding 1240520 (2024-007)

Material Weakness 2024

Kitsap Community Resources

WA

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

2024-07 Significant Deficiency in Internal Control and Compliance over Major Programs Management Response: KCR is in the process of implementing electronic timesheets by 10/1/2026, that will eliminate the risk of unsigned and unapproved timesheets prior to payroll processing. KCR will be using elect...

2024-07 Significant Deficiency in Internal Control and Compliance over Major Programs Management Response: KCR is in the process of implementing electronic timesheets by 10/1/2026, that will eliminate the risk of unsigned and unapproved timesheets prior to payroll processing. KCR will be using electronic timesheets through MIP. Supervisors and managers will need to electronically approve timesheets prior to payroll being processed. Staff responsible: CFO Irmgard Davis irmgardd@kcr.org.

View Audit 414976

Corrective Action Plans

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