Corrective Action Plans

Finding 1236935 (2024-004)

Material Weakness 2024

NORTHERN ROCKY MOUNTAIN ECONOMIC DEVELOPMENT DISTRICT

MT

Allowable Costs / Cost Principles Reporting § 200.512

Northern Rocky Mountain Economic Development District (NRMEDD) agrees with the recommendation. The delay in filing the 2023 and 2024 reporting packages resulted from the late receipt of prior audit findings and the unexpected termination of services by the previous audit firm. Despite diligent effor...

Northern Rocky Mountain Economic Development District (NRMEDD) agrees with the recommendation. The delay in filing the 2023 and 2024 reporting packages resulted from the late receipt of prior audit findings and the unexpected termination of services by the previous audit firm. Despite diligent efforts to secure a new firm, NRMEDD encountered a significant shortage of auditors willing to service small non-profits with complex federal compliance requirements. To ensure future compliance with 2 CFR 200.512(a), NRMEDD has established a long-term partnership with Amatics CPA Group to stabilize the audit cycle and ensure all future reporting packages are submitted to the Federal Audit Clearinghouse within the required regulatory timeframe.

View Audit 412398

Finding 1236712 (2024-005)

Material Weakness 2024

Washington County Negro Business and Professional Women's Club, Inc.

GA

Allowable Costs / Cost Principles § 200.303 § 200.403

Finding 2024-005: Allowable Costs/Cost Principles Lack of proper review of underlying lease agreement for invoices Corrective Action Plan The lease agreement referenced in this finding originated in 2014 and involved copier equipment that had previously been returned. The matter has been fully resol...

Finding 2024-005: Allowable Costs/Cost Principles Lack of proper review of underlying lease agreement for invoices Corrective Action Plan The lease agreement referenced in this finding originated in 2014 and involved copier equipment that had previously been returned. The matter has been fully resolved with the copier provider, which refunded the applicable amount, and those funds were subsequently returned to the Office of Head Start in accordance with the instructions provided. The program also contacted OHS, followed the guidance received, and submitted all supporting documentation for review. Within the next 30 days, the program will strengthen its invoice review process by requiring verification of lease agreements and supporting documentation prior to payment approval and by ensuring all historical and current lease-related records are retained in a centralized location. To ensure long-term compliance, the program will implement strengthened internal controls within 60 days, including dual review of all leases-related invoices, periodic reconciliation of active lease agreements, and annual verification of contract status. Ongoing monitoring will be conducted by the Finance Officer and Head Start Director, who will provide quarterly updates on compliance and documentation accuracy. Responsible Personnel: Cynthia Cooper – Chief Finance Officer: Oversight, review, and compliance monitoring Sharon Jordan - Head Start Director: Accountability and reporting Estimated Date of Completion: December 2026

View Audit 412263

Finding 1236707 (2024-004)

Material Weakness 2024

LAVENDER YOUTH RECREATION AND INFORMATION CENTER, INC.

CA

Allowable Costs / Cost Principles § 200.414

Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding. LYRIC will take the following corrective actions: (1) immediately correct the indirect cost rate applied to the HUD award and all future grant budgets to ensure it does not exceed the 10% rate; (2) wo...

Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding. LYRIC will take the following corrective actions: (1) immediately correct the indirect cost rate applied to the HUD award and all future grant budgets to ensure it does not exceed the 10% rate; (2) work with HUD to address the $48,814 overcharge and determine the appropriate remedy, including offsetting other legitimate expenses against the overdrawn amount as necessary; (3) document the organization's elected indirect cost rate and methodology in each grant's budget file and award documentation; (4) evaluate whether to pursue a new NICRA through the cognizant federal agency if a rate above 10% is needed to accurately recover indirect costs with future grants; and (5) provide specific and targeted training to concerned staff on indirect cost rate rules, MTDC calculation, and Uniform Guidance compliance. Responsible Official and Position: Ana Rubio, Director of Finance, and Laura Chavez, Contracts Manager Expected Implementation Date: July 1, 2026

View Audit 412259

Finding 1236705 (2024-002)

Material Weakness 2024

LAVENDER YOUTH RECREATION AND INFORMATION CENTER, INC.

CA

Allowable Costs / Cost Principles § 200.403 § 200.405

Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and treats accurate reimbursement of federal funds as a serious obligation. LYRIC will implement the following corrective actions: (1) create and maintain a detailed reimbursement tracking log recordin...

Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and treats accurate reimbursement of federal funds as a serious obligation. LYRIC will implement the following corrective actions: (1) create and maintain a detailed reimbursement tracking log recording each submitted draw by expense date, vendor, amount, and draw number, to be updated at the time of every submission; (2) require a second staff member to perform an independent review of each reimbursement request against the tracking log and general ledger prior to submission, specifically to identify potential duplicate charges or wrong coding of expenses; (3) work with HUD to address the $54,799 in duplicated amount to offset other legitimate expenses; and (4) explore whether LYRIC's accounting system can be configured to flag expenditures already coded to a prior reimbursement request, adding a system-level check to the manual review process. Responsible Official and Position: Ana Rubio, Director of Finance, and Laura Chavez, Contracts Manager Expected Implementation Date: July 1, 2026

View Audit 412259

Finding 1236583 (2024-002)

Material Weakness 2024

Center for Pan Asian Community Services, Inc.

GA

Allowable Costs / Cost Principles

We have implemented internal controls to ensure disbursements are properly reviewed and approved and all documentation and are retained on file based on the Center’s documentation retention policy. Implementation date: ___7/01/2026___

View Audit 412136

Finding 1236124 (2024-001)

Material Weakness 2024

Milford, Town of

ME

Allowable Costs / Cost Principles § 200.430

Finding 2024-001 - 2023--001 - Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: David Dionne, Town Manager and Trish Clark, Superintendent of Schools Corrective Action: The finance department of Town and school has gone through turnover through Fiscal year 24. All Fi...

Finding 2024-001 - 2023--001 - Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: David Dionne, Town Manager and Trish Clark, Superintendent of Schools Corrective Action: The finance department of Town and school has gone through turnover through Fiscal year 24. All Finance Department staff will continue to receive additional training in the reconciliation of the accounts and warrant process system. In addtion, the focus will be on having all proper documentation for payments made from the Town and School Treasury. Anticipated Completion Date: June 30, 2025

View Audit 411754

Finding 1235991 (2024-003)

Material Weakness 2024

Town of Greenfield

MA

Allowable Costs / Cost Principles § 200.403 § 200.405

Audit Finding Reference: 2024-003 Improve Internal Controls and Documentation over Vendor Transactions Planned Corrective Action: Management agrees with recommendation to strengthen internal controls by ensuring all expenditures charged to federal programs are properly documented and approved prior ...

Audit Finding Reference: 2024-003 Improve Internal Controls and Documentation over Vendor Transactions Planned Corrective Action: Management agrees with recommendation to strengthen internal controls by ensuring all expenditures charged to federal programs are properly documented and approved prior to payment and periodically review vendor payment processes to verify compliance with documentation and approval procedures. Management expects these recommendations to be fully implemented by the start of the next fiscal year. Planned Implementation Date of Corrective Action: July 1, 2026 Person Responsible for Corrective Action: School Superintendent, School Business Office and City Grants Management

View Audit 411595

Finding 1235911 (2024-007)

Material Weakness 2024

Stanislaus Council of Governments

CA

Allowable Costs / Cost Principles § 200.302 § 200.403 § 200.405

Reference Number: 2024-007 Finding Title: Reimbursable Expenditures Assistance Listing Number/Program: 20.205 – Highway Planning and Construction Agency / Pass-Through: U.S. Department of Transportation, passed through the California Department of Transportation Compliance Requirement: Allowable Cos...

Reference Number: 2024-007 Finding Title: Reimbursable Expenditures Assistance Listing Number/Program: 20.205 – Highway Planning and Construction Agency / Pass-Through: U.S. Department of Transportation, passed through the California Department of Transportation Compliance Requirement: Allowable Costs and Activities Management's Response Management concurs with the finding and acknowledges that improvements are necessary to strengthen StanCOG's internal controls over grant expenditure documentation, review, and reimbursement processes. The condition identified resulted from deficiencies in historical grant expenditure documentation and review procedures. During the period under audit, StanCOG did not have sufficiently documented processes in place to ensure that all costs charged to federal awards were supported by adequate documentation demonstrating the nature, amount, timing, allowability, and allocability of the expenditure prior to reimbursement submission. The unsupported expenditure identified during testing relates to a reimbursement claimed under the Highway Planning and Construction program. Management recognizes the importance of maintaining complete supporting documentation for all federal award expenditures and will work with the appropriate parties, including the grantor as necessary, to evaluate and resolve the questioned cost in accordance with applicable federal requirements. Since the period under audit, StanCOG has undergone significant changes within its Finance Department and has recently hired new management focused on strengthening financial controls, improving grant compliance practices, and rebuilding sustainable financial processes. Management is currently reviewing existing grant accounting and reimbursement procedures and is implementing enhanced controls to ensure federal expenditures are properly supported and reviewed prior to reimbursement requests. Management is implementing, or plans to implement, the following corrective actions: • Establish standardized grant expenditure review procedures requiring supporting documentation before costs are charged to federal awards or submitted for reimbursement. • Develop documentation requirements for grant-related expenditures, including invoices, contracts, payroll documentation, time records, and other supporting records necessary to demonstrate allowability and allocability. • Implement documented supervisory review procedures to verify that expenditures charged to federal programs are appropriate, supported, and comply with applicable federal requirements. • Improve coordination between Finance and program/project staff to ensure required supporting documentation is collected and retained timely. • Establish consistent grant file organization and retention procedures to ensure documentation supporting federal expenditures is readily available for monitoring and audit purposes. • Provide guidance and training to staff involved in grant administration, project management, and expenditure processing regarding federal cost principles and documentation requirements. • Review the questioned cost identified in the audit and coordinate with the appropriate grantor representatives regarding resolution, as necessary. Management recognizes the importance of strong grant management practices and maintaining adequate documentation to support the use of federal funds. StanCOG is committed to strengthening its internal control environment, improving grant expenditure review procedures, and ensuring that future reimbursement requests are supported by complete and appropriate documentation in accordance with federal requirements.

View Audit 411533

Finding 1235710 (2024-006)

Material Weakness 2024

Isanti County

MN

Allowable Costs / Cost Principles Cash Management Material Weakness

Special Provisions Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material We...

Special Provisions Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document the review of all the LCTS reports submitted by each collaborative member each quarter for accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure there are proper financial procedures and controls in place to properly document the review of all required reports for the program. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December 31, 2026

View Audit 411411

Finding 1235709 (2024-005)

Material Weakness 2024

Isanti County

MN

Allowable Costs / Cost Principles Material Weakness

Reporting Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in...

Reporting Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document the review of all required reports for the program. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure there are proper financial procedures and controls in place to properly document the review of all required reports for the program. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December 31, 2026

View Audit 411411

Finding 1235708 (2024-004)

Material Weakness 2024

Isanti County

MN

Allowable Costs / Cost Principles HUD Housing Programs Material Weakness

Allowable Costs - Quarterly Review of State Time Study Listings Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through D...

Allowable Costs - Quarterly Review of State Time Study Listings Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document the review of the state time study listings each quarter. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure there are proper financial procedures and controls in place to properly document the review of the state time study listings each quarter. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December 31, 2026

View Audit 411411

Finding 1230141 (2024-053)

Material Weakness 2024

State of Nevada

NV

Allowable Costs / Cost Principles § 200.430

Finding 2024-053 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Payroll Documentation) Auditor's Summary of the Finding The auditors concluded that the Nevada Division of Emergency Management (DEM) did not maintain sufficient documentation to support the allocation of employe...

Finding 2024-053 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Payroll Documentation) Auditor's Summary of the Finding The auditors concluded that the Nevada Division of Emergency Management (DEM) did not maintain sufficient documentation to support the allocation of employee salaries and wages charged to the Homeland Security Grant Program. Specifically, documentation supporting payroll distributions was not available for all sampled payroll transactions, resulting in questioned payroll costs. The auditors recommended that DEM strengthen internal controls to ensure documentation supporting the distribution of employee salaries and wages is maintained. OEM Response The Nevada Office of Emergency Management (OEM), formerly the Nevada Division of Emergency Management (DEM) during the FY 2024 audit period, agrees that documentation supporting payroll distributions should be consistently maintained and readily available to demonstrate compliance with applicable federal requirements. During the audit period, DEM maintained internal controls over payroll administration that included supervisory approval of employee payroll, salary certifications validating payroll distributions, and fiscal review of personnel costs charged to Homeland Security Grant Program awards. Salary certifications were used to verify that payroll distributions accurately reflected work performed and supported the allocation of personnel costs to applicable federal awards. The audit identified that salary certifications and supporting documentation for certain sampled payroll transactions were not available during the audit. While OEM believes these documentation deficiencies did not indicate that payroll costs were improperly charged to the grant, the absence of complete documentation for the sampled transactions limited DEM's ability to demonstrate compliance with the documentation requirements of 2 C.F.R. § 200.430. Corrective Action Planned OEM has revised its Internal Control Manual to strengthen documentation and retention requirements for personnel costs charged to federal awards. The revised Personnel and Payroll section formally requires salary certifications, payroll documentation, maintenance of personnel records, and grant-specific payroll documentation. The Grant Management section incorporates these documentation requirements into the administration of federal awards to ensure supporting records are retained as part of the official grant file. OEM will continue to use salary certifications to validate payroll distributions and will implement additional management oversight to ensure certifications and supporting payroll documentation are consistently completed, retained, and readily available for monitoring and audit purposes. These enhancements reinforce existing payroll controls while improving documentation retention and demonstrating compliance with 2 C.F.R. § 200.430. Responsible Official(s) • Jared Franco, Chief Fiscal Officer • Judith Lyman, Budget Officer Anticipated Completion Date Implemented through the 2026 Internal Control Manual. Revised documentation and record retention procedures are currently in effect and will be applied to all active and future Homeland Security Grant Program awards.

View Audit 411357

Finding 1230137 (2024-049)

Material Weakness 2024

State of Nevada

NV

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles

Finding Number 2024-049 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP), 93.767 Summary of Finding: Subrecipient amounts were originally reported incorrectly on the SEFA. The Nevada Health Authority (NVHA) did not have adequate internal controls to ensure paym...

Finding Number 2024-049 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP), 93.767 Summary of Finding: Subrecipient amounts were originally reported incorrectly on the SEFA. The Nevada Health Authority (NVHA) did not have adequate internal controls to ensure payments to providers were not coded as subrecipient payments in accordance with the State of Nevada’s accounting policy. Prior to correction, amounts passed through to subrecipients on the SEFA were overstated by $977,084. We recommend NVHA enhance internal controls to ensure payments to providers are not coded as subrecipient payments in accordance with the State of Nevada’s accounting policy. NVHA Response: The Nevada Health Authority agrees with this finding. Contact Person(s): Russ Steele, Audit Manager Corrective Action Planned: Effective March 2024, NVHA enhanced its internal controls to ensure that provider payments are not incorrectly coded as subrecipient payments, in accordance with the State of Nevada’s accounting policies. NVHA has partnered with our vendor to update accounting codes so that subrecipient general ledger accounts are used only when payments are truly intended for subrecipients. At this time, NVHA utilizes subrecipient GLs 8575 and 8576 exclusively for school-based services payments. Anticipated Completion Date of Implementation of Corrective Action Plan : 03/31/2024

View Audit 411357

Finding 1230123 (2024-037)

Material Weakness 2024

State of Nevada

NV

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

Finding 2024-037: Reporting The Division of Public and Behavioral Health (DPBH) did not have adequate internal controls to ensure quarterly fiscal reports were reviewed by a person other than the preparer and that certain information reconciled to underlying supporting documentation. Nevada Division...

Finding 2024-037: Reporting The Division of Public and Behavioral Health (DPBH) did not have adequate internal controls to ensure quarterly fiscal reports were reviewed by a person other than the preparer and that certain information reconciled to underlying supporting documentation. Nevada Division of Public and Behavioral Health response: The Nevada Division of Public and Behavioral Health accepts this finding and will initiate corrective action as described below. Corrective Action: The Division of Public and Behavioral Health will enhance internal controls to ensure the Quarterly Fiscal Reports are reconciled to underlying supporting documentation and are reviewed by an individual independent of the preparation of the reports. Date of Completion: August 2026 Responsible Party: Kagan Griffin, Health Program Manager II Kailynn Griffith, Health Program Manager II If you have any questions, please contact Kori Kendall, Auditor III at 775-684-3228 or by email at k.kendall@health.nv.gov.

View Audit 411357

Finding 1230108 (2024-034)

Material Weakness 2024

State of Nevada

NV

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

Finding #2024-034 - Education Stabilization Fund, 84.425 Reporting - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to identify required information to be reporte...

Finding #2024-034 - Education Stabilization Fund, 84.425 Reporting - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to identify required information to be reported, ensure accuracy, and maintain adequate document retention to support compliance. NDE Response Due to rapid turnover, changes in assigned personnel, and inconsistent file architecture, NDE has struggled to ensure that source documentation is labeled and retained appropriately. Corrective Action NDE shall document standards for data and reporting, to include required standards for policies and procedures and business rules, to support the development of new and/or temporary reporting requirements in alignment with all relevant internal controls. NDE shall implement internal control monitoring specific to compliance with the data and reporting standards. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2027. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.

View Audit 411357

Finding 1230040 (2024-003)

Material Weakness 2024

Village of Orland Park

IL

Reporting Allowable Costs / Cost Principles Cash Management

Corrective Action Plan 2024-003 Delayed Completion and Submission of Single Audit Condition Found The Village did not complete and submit its Single Audit for the fiscal year ended December 31, 2024, within the required timeframe. Management determined that the Village had expended federal awards in...

Corrective Action Plan 2024-003 Delayed Completion and Submission of Single Audit Condition Found The Village did not complete and submit its Single Audit for the fiscal year ended December 31, 2024, within the required timeframe. Management determined that the Village had expended federal awards in excess of the Single Audit threshold only after the required audit planning and reporting timeline had been delayed. The delay occurred because the Village’s grant tracking process/system did not allow management to separately identify, classify, and monitor federal grant awards and expenditures apart from state grant awards and expenditures. As a result, management did not timely determine whether the Village met the federal expenditure threshold requiring a Single Audit for the fiscal year ended December 31, 2024. Corrective Action Plan 1. Deficient Grant Tracking System / Process: The Village has completed our ERP implementation of Munis of Tyler Technologies. This allows for better review of grant tracking and cleaner allocations. 2. Inadequate Internal Controls Over Federal Awards: The Village has documented new post-award policies under Uniform Guidance (2 CFR 200). Moving forward, both the managing department head and the Finance Director will sign off on the intake, classification, and tracking of new grant agreements to ensure proper oversight from day one. 3. Absence of a Formal Review Process: The Village will institute a mandatory quarterly threshold review and a comprehensive year-end pre-audit checklist. Prior to fiscal year-end, the Finance Department formally aggregates all active grant expenditures to evaluate whether federal outlays meet or exceed the $750,000 Single Audit threshold, ensuring early audit planning. Responsible Person for Corrective Action Plan Chris Frankenfield- Finance Director Implementation Date of Corrective Action Plan 1. August 18, 2025 2. March 31, 2027 3. March 31, 2027

View Audit 411290

Finding 1230034 (2024-003)

Material Weakness 2024

Valley Health Associates

CA

Allowable Costs / Cost Principles § 200.405 § 200.430

Planned Corrective Action: Valley Health Associates will implement a consistent review process per pay period to ensure payroll is allocated accurately to each program to the best ability possible and take quick action to fix any errors or adjustments.

View Audit 411282

Finding 1230010 (2024-003)

Material Weakness 2024

Baycare Health System, Inc. and Affiliates

FL

Allowable Costs / Cost Principles § 200.303 § 200.403 § 200.406

Management has enhanced controls over FEMA grant compliance by strengthening the formal review process to verify that costs claimed are eligible, adequately supported, and consistent with FEMA program requirements prior to submission, including the removal of any duplicates.

View Audit 411239

Finding 1229984 (2024-004)

Material Weakness 2024

MINNESOTA ASSOCIATION FOR CHILDRENS MENTAL HEALTH

MN

Allowable Costs / Cost Principles

Name of Contact Person Responsible for Corrective Action: Lauren Moberg, Executive Director Corrective Actions Planned: The Organization will take steps to maintain support of personnel charges based on actual results including timesheets indicating the amounts charged reflect actual staff time spen...

Name of Contact Person Responsible for Corrective Action: Lauren Moberg, Executive Director Corrective Actions Planned: The Organization will take steps to maintain support of personnel charges based on actual results including timesheets indicating the amounts charged reflect actual staff time spent on the program. The Organization will also take the necessary steps to ensure that grant expenditure billing reports reflect actual program expenses supported by the general ledger and agree to actual amounts charged to the program. Anticipated Completion Date: These procedures are already in the process of being implemented and will be fully implemented by the end of 2026.

View Audit 411215

Finding 1229813 (2024-003)

Material Weakness 2024

Coquille Watershed Association

OR

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Recommendation: We recommend that the Organization establish and implement formal payroll rate documentation and approval controls. At a minimum, management should maintain documentation to support all initial salary/wage rates and subsequent rate changes; require documented approval by an appropria...

Recommendation: We recommend that the Organization establish and implement formal payroll rate documentation and approval controls. At a minimum, management should maintain documentation to support all initial salary/wage rates and subsequent rate changes; require documented approval by an appropriate supervisor, executive, or governing body designee before pay rate changes are entered into the payroll system; restrict access to the master rate spreadsheet and maintain version history or change logs, and require independent review of all pay rate changes before payroll is processed. Corrective action planned: At the end of 2025, the Organization began providing letters from the director to staff when any pay rate changes occurred. The board will provide such a letter to the director when the director’s rate changes. The Organization already had and continues to provide offer letters upon hiring staff that includes the initial rate. Payroll is now run by the Operations Manager and sent for approval by the Executive Director. Pay rate is reviewed as part of the submission process. Persons responsible for corrective action: Justin Queen, Executive Director Date by which the corrective action will be completed: Complete

View Audit 411097

Finding 1229781 (2024-003)

Material Weakness 2024

Public Law Center

CA

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.430

PLC transitioned to a new HRIS software in mid-2024, which disrupted our usual process for documenting approval of employee salary/pay rates. PLC’s HR department has incorporated a new procedure for documenting personnel actions that is compatible with our HRIS software.

View Audit 411086

Finding 1229707 (2024-023)

Material Weakness 2024

Republic of the Marshall Islands

MH

Allowable Costs / Cost Principles § 200.303

Condition 1 All pay slips claiming OT will include supporting OT approval including justification that are allocable to grants. Condition 2 Item 1. Utilities are paid out of the de minimis rate of 10% for Federal grants. $43,800 for utilities is included in the budget breakdown of the grant. Items #...

Condition 1 All pay slips claiming OT will include supporting OT approval including justification that are allocable to grants. Condition 2 Item 1. Utilities are paid out of the de minimis rate of 10% for Federal grants. $43,800 for utilities is included in the budget breakdown of the grant. Items #1 to#27. Except for items #1, #7 to #27, the Ministry of Finance agrees with the finding and will ensure that all invoices or billings are attached to support payment accuracy and demonstrate compliance with procurement requirements.

View Audit 410889

Finding 1229696 (2024-018)

Material Weakness 2024

Republic of the Marshall Islands

MH

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

Condition 1-1. Due to structural damages to the Payroll office, files were transferred from there to the warehouse for storage. After numerous attempts to recover the files, the payroll staff were not able to do so within the given time period. Effective October 2025, the Payroll team has been attac...

Condition 1-1. Due to structural damages to the Payroll office, files were transferred from there to the warehouse for storage. After numerous attempts to recover the files, the payroll staff were not able to do so within the given time period. Effective October 2025, the Payroll team has been attaching new employee contracts to the payslips in Bisan. PSC's HRMIS already stored the scanned PAFs of employees. The PSS has now acquired the Orange Human Resource Management System, which will also make contracts available electronically. Condition 1-2. PSS Response: PSS Management acknowledges the finding. While leave requests were generally submitted and recorded, we recognize that approved leave forms were not consistently maintained to support all leave hours charged during the audit period. To address this finding, beginning in FY2027, PSS will implement the Orange Human Resource Management System, which will transition the leave request process from a paper-based system to an electronic system. This will create a complete electronic audit trail for all leave requests submitted by PSS employees on islands with internet access. As internet connectivity continues to expand through solar power and Starlink installations, additional schools and offices will transition to the electronic system, with full implementation across all PSS locations targeted by the end of FY2028. In addition, the Finance and Audit Compliance Specialist will conduct periodic compliance reviews to verify that leave requests are properly approved, documented, and retained in accordance with PSS policies and applicable grant requirements. Any deficiencies identified during these reviews will be communicated promptly to management so that corrective action can be taken. MOF response: Additionally, effective FY2025, the Ministry of Finance requires all ministries to submit leave forms for all annual and sick leave taken, regardless of the number of hours & days. The Ministry of Finance issued a clarifying memorandum on July 29, 2025. Condition 2. These costs were incurred to cover the retirees' annual leave lump-sum payments. If not in the approved budget narrative, MOF & PSS will ensure prior approval from the grantor is obtained and sufficient supporting calculations are provided before charging excess costs to the grant to ensure allowability and compliance with grant requirements.

View Audit 410889

Finding 1229688 (2024-010)

Material Weakness 2024

Republic of the Marshall Islands

MH

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

Condition 1: Effective FY2025, all ministries submit leave forms for all annual and sick leave taken, regardless of the number of days. The Ministry of Finance issued a clarifying memorandum on July 29, 2025. Condition 2: Item 1. MOF to set a policy providing a repatriation allowance of $500 to expa...

Condition 1: Effective FY2025, all ministries submit leave forms for all annual and sick leave taken, regardless of the number of days. The Ministry of Finance issued a clarifying memorandum on July 29, 2025. Condition 2: Item 1. MOF to set a policy providing a repatriation allowance of $500 to expatriates who have completed their employment contracts and exiting for good, and receipt is not required. Item 2-4. During the second year of FMIS implementation, limited staffing and scanning equipment prevented the timely upload of supporting documents. The Ministry has since improved its staffing and equipment, and in FY2025 all supporting documentation is uploaded to FMIS before payment processing. Item 5. The Ministry disagrees with the finding. The per diem and transportation expenses are accounted for in the liquidation supporting documents. The Government accepts acknowledgment receipts as supporting documentation for transportation services provided in neighboring islands due to the vendors' limited resources and inability to issue invoices or printed receipts. Item 6. The Laura Elementary School PDP & Detailed Design contract was an old/completed project originally funded under expired grant D21AF102130 and was subsequently regranted under FY2024 grant D24AF00024 along with three other projects. The payment was supported by a PMU letter identifying the contractor's total outstanding unpaid invoices. Condition 3. Effective 3rd quarter of FY2025, all transactions charged to the Enewetak grant go through the national procurement and payment process.

View Audit 410889

Finding 1229418 (2024-003)

Material Weakness 2024

MICHIGAN FOUNDERS FUND

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Reporting

Remediation Steps Completed: In advance of this finding, MFF began remediation for this issue starting in 2024, through key hires, and extended in 2025 with the development of a full suite of financial and procurement policies. The steps taken are as follows: • A new Executive Director was hired on ...

Remediation Steps Completed: In advance of this finding, MFF began remediation for this issue starting in 2024, through key hires, and extended in 2025 with the development of a full suite of financial and procurement policies. The steps taken are as follows: • A new Executive Director was hired on May 1, 2024 to run the organization. • A full-time Impact Manager was hired on December 9, 2024 to oversee grant management, reporting, and compliance. • A new contract finance and accounting firm and contract Financial Officer was selected and engaged in February 2025 for regular and ongoing financial management, accounting, and oversight. • A full-time Operations Director was hired on August 21, 2025 to oversee organizational systems development and management. • A full suite of financial and procurement policies was drafted in the Fall of 2025 with input and guidance from the Financial Officer, Impact Manager, and Executive Director and informed by procurement standards as described in 2 CFR Part 200, Subpart D. • The Financial and Procurement Policies were formally adopted by the Michigan Founders Fund Board of Directors on June 15, 2026. • The Financial and Procurement Policies were implemented organization-wide on July 15, 2026. Implementation, Monitoring, and Sustainability of the Corrective Action: To ensure this corrective action is implemented and remains effective beyond initial adoption, MFF built the following monitoring controls: The Financial Officer and Impact Manager will follow a documented monthly close checklist that applies the newly adopted Financial and Procurement Policies consistently across all federal awards, ensuring transactions are coded, reviewed, and approved using the same process each month. • For every cost charged to a federal award, MFF will retain evidence of review and approval — including approver name, date, and basis for allowability. This evidence will be centrally filed by grant/award number to support ready retrieval during monitoring or audit. • The Executive Director, Financial Officer, and Impact Manager will conduct a quarterly review of internal controls over compliance with all staff and contractors who have a role in federal award administration. • The Financial and Procurement Policies are scheduled for internal review at least annually, with the next review scheduled for July 1, 2027, or sooner if required. o All staff and board members with purchasing authority will receive training on the new Financial and Procurement Policies at the time of adoption; training is repeated annually and incorporated into new-hire onboarding. o The Executive Director has been designated as the official with overall responsibility for procurement-policy compliance; the Operations Director is responsible for day-to-day monitoring and enforcement of the policy, including maintenance of complete procurement files. • MFF will maintain a written internal controls procedures manual, distinct from the Boardadopted policies, that documents the step-by-step mechanics of compliance processes (e.g., approval routing, filing conventions, reporting deadlines). • These monitoring activities will be reviewed by the Executive Director and Financial Officer on a quarterly basis, with any unresolved control deficiencies escalated to the Board within 60 days of identification. Anticipated Completion Date: September 2026 Contact Person: Rishi Moudgil, Executive Director Contact Phone Number: (313) 338-8292

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Corrective Action Plans

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