Corrective Action Plans

Finding 1179584 (2024-001)

Material Weakness 2024

MONTACHUSETT VETERANS OUTREACH CENTER, INC.

MA

Allowable Costs / Cost Principles Questioned Costs Cash Management § 200.403

2024-001– Allowable Costs – Internal Control over Payroll and Non-Payroll Costs Programs 64.024 Veteran Affairs Homeless Providers Grant and Per Diem Program 64.055 Staff Sergeant Parker Gordon Fox Suicide Prevention Grant Program Responsible Officials Stephanie Marchetti, Executive Director Cynthia...

2024-001– Allowable Costs – Internal Control over Payroll and Non-Payroll Costs Programs 64.024 Veteran Affairs Homeless Providers Grant and Per Diem Program 64.055 Staff Sergeant Parker Gordon Fox Suicide Prevention Grant Program Responsible Officials Stephanie Marchetti, Executive Director Cynthia Newsham, Director of Finance Plan Detail Based on the on the findings, the Executive Director and Director of Finance will review the organizational policies and procedures and create a cost allocation plan based on employment status. Once finalized the cost allocation plan will be reviewed and approved by the board of directors, who approve any policy changes before they are implemented. Anticipated Completion Date June 30, 2025

View Audit 391970

Finding 1179531 (2024-006)

Material Weakness 2024

Restoration Christian Ministries

CO

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.302 § 200.305 § 200.317 § 200.318 § 200.327

Finding Number: 2024-006 Finding Title: Financial Policies and Procedures Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiat...

Finding Number: 2024-006 Finding Title: Financial Policies and Procedures Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiatives—Special Project, Neighborhood Initiative and Neighborhood Stabilization Program; Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Financial Management and Standards of Financial Management Systems (2 CFR §200.302(b)); Allowable Costs (2 CFR §200.403-405); Procurement (2 CFR §200.317-327); Cash Management (2 CFR §200.305); Travel Costs (2 CFR §200.475) Note: Organization has existing Conflict of Interest policy in compliance with 2 CFR §200.318(c)(1). Questioned Costs: $0 Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization will establish formalized accounting policies and procedures that adhere to the requirements of the Uniform Guidance. Corrective Action Plan: Corrective Action #1: Comprehensive Policy Manual Development • Action: Engage consultant or work with Contract Accountant to develop comprehensive written financial policies and procedures manual addressing all Uniform Guidance requirements, including: (a) Allowable costs (2 CFR §200.403-405); (b) Procurement (2 CFR §200.317-327); (c) Cash management (2 CFR §200.305); (d) Travel costs (2 CFR §200.475); (e) Time and effort documentation; (f) Equipment management; (g) Subrecipient monitoring; (h) Financial reporting; and (i) Record retention. Ensure policies address financial management system requirements under 2 CFR §200.302. Tailor policies to Organization's all-volunteer structure. [Note: Organization already has Conflict of Interest policy complying with 2 CFR §200.318(c)(1).] • Responsible Person/Title: Board Treasurer with Contract Accountant • Anticipated Completion Date: April 30, 2026 Corrective Action #2: Board Approval and Adoption • Action: Present draft policies to full Board of Directors for review and input. Board will formally adopt policies by resolution. Document approval in Board meeting minutes. • Responsible Person/Title: Board President • Anticipated Completion Date: May 31, 2026 Corrective Action #3: Dissemination and Training • Action: Distribute approved policies to all Board members and Contract Accountant. Conduct training session for Board members and Contract Accountant on new policies and procedures. Board members and Contract Accountant will sign acknowledgment of receipt and understanding. Make policies readily accessible (e.g., shared drive, Board portal). • Responsible Person/Title: Board President • Anticipated Completion Date: June 30, 2026 Corrective Action #4: Implementation Tools and Support • Action: Develop templates, forms, and tools to support policy implementation. Create workflow diagrams and checklists for common transactions. Establish Board Treasurer as primary resource for policy implementation questions. • Responsible Person/Title: Board Treasurer and Contract Accountant • Anticipated Completion Date: July 31, 2026 Corrective Action #5: Annual Policy Review Process • Action: Schedule annual review of policies to ensure continued Uniform Guidance compliance. Update policies as needed for regulatory or organizational changes. Submit material policy changes to full Board for approval. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: Annually, beginning June 2027 Corrective Action #6: Governance Structure Assessment • Action: Board will evaluate establishing Audit Committee or combined Finance/Audit Committee to provide enhanced oversight of financial management, internal controls, and federal compliance. If Board size prohibits separate committee, designate at least two Board members with specific oversight responsibilities. • Responsible Person/Title: Board President • Anticipated Completion Date: June 30, 2026

View Audit 391915

Finding 1179529 (2024-005)

Material Weakness 2024

Restoration Christian Ministries

CO

Reporting Allowable Costs / Cost Principles § 200.302

Finding Number: 2024-005 Finding Title: Insufficient Accounting to Track Federal Grant Expenditures Federal Program Information: • Federal Agency: Department of the Treasury • Assistance Listing Number (ALN): 21.027 • Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Compliance...

Finding Number: 2024-005 Finding Title: Insufficient Accounting to Track Federal Grant Expenditures Federal Program Information: • Federal Agency: Department of the Treasury • Assistance Listing Number (ALN): 21.027 • Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Financial Management and Standards of Financial Management Systems (2 CFR §200.302) Questioned Costs: $0 Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization is in process of implementing a project based ledger and procedures to ensure federal expenditures are properly coded so they are readily identifiable. Corrective Action Plan: Corrective Action #1: Project-Based Accounting System Implementation • Action: Implement project-based accounting system assigning unique project codes to each federal award. Configure general ledger to separately track revenues and expenditures by federal program. Establish cost centers or fund codes specific to federal programs. Board Treasurer will approve system modifications. • Responsible Person/Title: Contract Accountant and Board Treasurer • Anticipated Completion Date: March 31, 2026 Corrective Action #2: Chart of Accounts Restructuring • Action: Redesign chart of accounts to include distinct account codes for federal program expenditures. Create account code structure identifying: (a) funding source, (b) program/project, and (c) expense category. Document structure and provide to Board Treasurer. Board will formally approve revised chart of accounts. • Responsible Person/Title: Contract Accountant • Anticipated Completion Date: February 28, 2026 Corrective Action #3: Expense Coding Procedures • Action: Develop written procedures for charging costs to federal programs, including documentation requirements. Implement procedures for allocating shared costs where applicable. Require all federal program expenditures coded with appropriate project/grant identifiers at time of transaction entry. Board Treasurer will review and approve expense allocation methodology. • Responsible Person/Title: Contract Accountant • Anticipated Completion Date: March 31, 2026 Corrective Action #4: Training and Implementation Support • Action: Provide training to Contract Accountant on new account structure and federal award tracking requirements. Ensure Contract Accountant has access to technical resources and support. Consider engaging consultant to assist with initial implementation. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: April 30, 2026 Corrective Action #5: Monthly Reconciliation and Monitoring • Action: Contract Accountant will perform monthly reconciliations of federal program expenditures by grant. Generate monthly expenditure reports by federal award for Board Treasurer review. Compare recorded expenditures to grant budgets and terms to identify irregularities. Board Treasurer will report federal grant expenditure status to full Board monthly. • Responsible Person/Title: Contract Accountant and Board Treasurer • Anticipated Completion Date: April 30, 2026 (initial); Ongoing monthly thereafter

View Audit 391915

Finding 1179526 (2024-003)

Material Weakness 2024

Restoration Christian Ministries

CO

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.214 § 200.317 § 200.327 § 200.332

Finding Number: 2024-003 Finding Title: Subrecipient Monitoring Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiatives—Speci...

Finding Number: 2024-003 Finding Title: Subrecipient Monitoring Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiatives—Special Project, Neighborhood Initiative and Neighborhood Stabilization Program; Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Subrecipient Monitoring (2 CFR §200.332(d)); Procurement Standards (2 CFR §200.317-200.327); Suspension and Debarment (2 CFR §200.214) Questioned Costs: $0 Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization has partnered with a firm to administer the development of the project and was unaware of its responsibilities to monitor the subrecipient. The Organization is in process of implementing procedures to ensure the subrecipient complies with the requirements of the Uniform Guidance. Corrective Action Plan: Corrective Action #1: Subrecipient Monitoring Policy Development • Action: Develop and adopt written subrecipient monitoring policies and procedures complying with 2 CFR §200.332. Include specific requirements for reviewing procurement policies, suspension/debarment procedures, and other compliance areas. Define monitoring activities, frequency, and documentation requirements. Board will formally approve policy by resolution. • Responsible Person/Title: Board President with Contract Accountant • Anticipated Completion Date: February 15, 2026 Corrective Action #2: Pre-Award Risk Assessment Process • Action: Implement pre-award risk assessment for all subrecipients. Require subrecipients to provide documentation of procurement policies and debarment procedures prior to executing subaward agreements. Board Treasurer will review and approve subrecipient policies for Uniform Guidance compliance before subaward execution. • Responsible Person/Title: Board President • Anticipated Completion Date: February 28, 2026 (initial); Ongoing for new subawards Corrective Action #3: Ongoing Monitoring Program • Action: Board will designate Board member or engage consultant to conduct annual reviews of subrecipients verifying procurement and suspension/debarment compliance. Require subrecipients to submit documentation of debarment checks for all vendors. Review subrecipient procurement transactions on sample basis. Designated monitor will report findings to full Board quarterly. • Responsible Person/Title: Board-designated monitor • Anticipated Completion Date: March 31, 2026 (initial monitoring); Ongoing annually thereafter Corrective Action #4: Technical Assistance to Subrecipient • Action: Provide training and technical assistance to current subrecipient to develop compliant procurement policies and debarment procedures. Engage consultant if needed. Create guidance materials and templates. Schedule quarterly meetings between Board representative and subrecipient. • Responsible Person/Title: Board President • Anticipated Completion Date: March 31, 2026 Corrective Action #5: Monitoring Documentation System • Action: Maintain comprehensive monitoring files documenting all activities, findings, and corrective actions. Board President will report monitoring results to full Board quarterly. • Responsible Person/Title: Board President • Anticipated Completion Date: March 31, 2026 (system implementation); Ongoing

View Audit 391915

Finding 1179403 (2024-008)

Material Weakness 2024

Recreation & Park Commission for Parish of East Baton Rouge

LA

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.318

View of Responsible Official: A written SOP was developed for determining allowable costs and procurement requirements in accordance with the applicable CFR to guide key finance staff with responsibility for federally eligible expenditures. Anticipated Completion Date: April 30, 2026 Responsible Con...

View of Responsible Official: A written SOP was developed for determining allowable costs and procurement requirements in accordance with the applicable CFR to guide key finance staff with responsibility for federally eligible expenditures. Anticipated Completion Date: April 30, 2026 Responsible Contact Person: Rhonda Williams, Financial Director

View Audit 391806

Finding 1179000 (2024-008)

Material Weakness 2024

City of Stockton

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Special Tests & Provisions

2024-008 – Special Tests and Provisions – Internal Control and Compliance over Obligation, Expenditure, Payment Requirements City’s Corrective Action Plan: The Department concurs with this finding. The City has since implemented policies and procedures to ensure timely issuance of award letters to s...

2024-008 – Special Tests and Provisions – Internal Control and Compliance over Obligation, Expenditure, Payment Requirements City’s Corrective Action Plan: The Department concurs with this finding. The City has since implemented policies and procedures to ensure timely issuance of award letters to satisfy the 180-day obligation requirement, and processing of payments within 30 days of receipt of complete documentation, or to document the reason payment cannot be processed. Staff will continue to follow and improve compliance with these established processes and procedures to ensure timely contract execution and payment processing. While unforeseen circumstances may occasionally cause delays, such instances will be documented and addressed promptly. Responsible Person: Director of Economic Development, Housing Manager Expected Implementation Date: March 12, 2024

View Audit 391415

Finding 1178991 (2024-004)

Material Weakness 2024

City of Stockton

CA

Allowable Costs / Cost Principles § 200.430

2024-004 – Allowable Costs/Cost Principles – Internal Control over Payroll Expenditures City’s Corrective Action Plan: The City accepts the finding, which resulted from the implementation of a new ERP system for position control, benefits, and payroll that began in 2024 and was completed in 2025. To...

2024-004 – Allowable Costs/Cost Principles – Internal Control over Payroll Expenditures City’s Corrective Action Plan: The City accepts the finding, which resulted from the implementation of a new ERP system for position control, benefits, and payroll that began in 2024 and was completed in 2025. To address the identified conditions, the City will strengthen internal controls over federal payroll allocations by implementing documented reconciliation and review procedures, regularly validating system configuration and allocation files, and establishing processes to identify and correct duplicate or unusual benefit postings. The finding appears to be based on salary charges from two staff members whose time was charged to ESG-related accounts that were not part of their original salary allocation setup. Charging time to accounts outside of original salary allocations is not atypical across City departments and is a common practice when staff responsibilities or work assignments cross funding sources. Executive-time was designed to allow this flexibility so that time charged accurately reflects how staff time is spent. In this instance, the two staff members performed ESG-related activities, and time was charged accordingly to reflect actual work performed. Cross-department internal controls for federal payroll expenditure processing and reporting will be updated, with revisions expected to be completed and tested by 2027. Responsible Person: Payroll & Department(s) Administering Grants Expected Implementation Date: Fiscal Year 2026

View Audit 391415

Finding 1177943 (2024-001)

Material Weakness 2024

Lorain County General Health District

OH

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance § 200.302 § 200.328 § 200.329

Now that Treasury Portal is updated with all obligations the County will utilize Oracle reporting to input all remaining expenditures in the applicable quarterly report.

View Audit 391349

Finding 1177813 (2024-005)

Material Weakness 2024

Rocky Mountain Innovation Initiative d/b/a Innosphere Ventures

CO

Allowable Costs / Cost Principles Questioned Costs § 200.430

Management will implement procedures to ensure payroll costs charged to federal awards are supported by after-the-fact documentation of actual time worked, in compliance with 2 CFR §200.430(i). Employees whose time is allocated to multiple programs will be required to complete time and effort report...

Management will implement procedures to ensure payroll costs charged to federal awards are supported by after-the-fact documentation of actual time worked, in compliance with 2 CFR §200.430(i). Employees whose time is allocated to multiple programs will be required to complete time and effort reporting. Payroll processing will include documented review and approval by separate individuals to strengthen internal controls and ensure accurate allocation of personnel costs.

View Audit 391159

Finding 1177736 (2024-002)

Material Weakness 2024

Refugee Support Services of the Carolinas, Inc.

NC

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Management Response: Management acknowledges that certain expense and salary allocations were not fully aligned with the approved grant budgets, primarily due to staffing transitions and evolving program priorities. These changes temporarily impacted the consistency of allocation methods and review ...

Management Response: Management acknowledges that certain expense and salary allocations were not fully aligned with the approved grant budgets, primarily due to staffing transitions and evolving program priorities. These changes temporarily impacted the consistency of allocation methods and review processes. methods and review processes. Planned Corrective Action: Management has implemented monthly reconciliations between expense allocations and the approved budgets to ensure ongoing accuracy and compliance. An ORR tracking sheet is now used to verify expenditure allocations against current budgeted amounts prior to each reimbursement submission, ensuring that all costs are allowable, properly supported, and aligned with approved grant budgets. Name of Contact Person: Anna Eaton, Executive Director

View Audit 391134

Finding 1177707 (2024-004)

Material Weakness 2024

Burke County Board of Education

GA

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

All journal entries related to the grant will be submitted by the Finance Director to the Director in charge of the grant for approval.

View Audit 391130

Finding 1177706 (2024-002)

Material Weakness 2024

Burke County Board of Education

GA

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting § 200.303 § 200.403 § 200.415

The School District will review established internal controls and procedures with pertinent staff to ensure all are being followed. Expenditures related to the grant will be reviewed by personnel in charge of the grant to ensure proper approvals are maintained.

View Audit 391130

Finding 1177697 (2024-001)

Material Weakness 2024

Burke County Board of Education

GA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.318 § 200.320 § 200.403

The School District will review established internal controls and procedures with pertinent staff to ensure all are being followed. Expenditures related to the grant will be reviewed by the Director in charge of the grant to ensure proper approvals are maintained and packing slips are submitted with...

The School District will review established internal controls and procedures with pertinent staff to ensure all are being followed. Expenditures related to the grant will be reviewed by the Director in charge of the grant to ensure proper approvals are maintained and packing slips are submitted with the invoice for payment. In the event a packing slip is not received, a note will be included to indicate such. All journal entries related to the grant will be submitted by the Finance Director to the Director in charge of the grant for approval. The School District will review established internal controls and procedures with pertinent staff to ensure all are being followed. Procurement transactions related to the grant will be reviewed by the Director in charge of the grant to ensure proper supervisor review and approvals are maintained. The Director in charge of the grant will review and update the current procedures to ensure that the required procurement methods are properly identified and followed and that required procurement documentation is properly identified, safeguarded, and retained.

View Audit 391130

Finding 1177674 (2024-012)

Material Weakness 2024

Southeast New Mexico College

NM

Allowable Costs / Cost Principles Questioned Costs § 200.303 § 200.430

Recommendation We recommend the College develop and implement adequate policies and procedures to ensure charging of expenses for allowability are based off approved amounts. Corrective Action Unfortunately, due to the untimely completion and release of the June 30, 2023 audit report (released on Au...

Recommendation We recommend the College develop and implement adequate policies and procedures to ensure charging of expenses for allowability are based off approved amounts. Corrective Action Unfortunately, due to the untimely completion and release of the June 30, 2023 audit report (released on August 8, 2025 - over two years after the end of the June 30, 2023 fiscal year audit), the College did not have the opportunity to review and begin a timely process of addressing a majority of the audit findings until well after the end of the audit period. While the College is committed to corrective action, the delayed delivery of the June 30, 2023 audit limited the ability to implement corrective measures earlier. The College is working proactively to ensure that these issues are resolved going forward. It is important to note that Southeast New Mexico College was a newly established independent community college, having formally separated from New Mexico State University (NMSU) as of April 2022. During this transition period, many administrative processes, including federal grant compliance procedures, were in the process of being developed, transitioned, and implemented independently from NMSU systems. As a result, certain policies, procedures, and documentation processes were not yet fully established or operational at the time of the audit. Corrective Action Taken / Planned: Policy and Procedure Development The institution will revise or develop written policies and procedures to ensure compliance with 2 CFR §200.430. The revised procedures will include: • Detailed requirements for supporting documentation for payroll costs. • Clear guidance on time and effort reporting. • Procedures for periodic payroll reconciliation between payroll records and grant charges. Staff Training Training will be provided for payroll, grants accounting, and department personnel involved in charging payroll costs to federal awards to ensure understanding and compliance with the new procedures. Payroll Reconciliation A process will be established to reconcile payroll charges to the grant with actual payroll records at least quarterly, with reviews and approvals documented. Effort Certification Employees whose salaries are charged to federal grants will be required to complete effort certifications, which will be reviewed and retained per federal guidelines. Monitoring and Review Grant accounting and payroll offices will implement an annual review process to ensure continued compliance and address any gaps or errors identified. Due Date of Completion: August 31, 2025 Responsible Part(ies) Vice President for Business and Finance (or appropriate official), Dean of Business and Finance, Restricted Funds Manager, Payroll Manager

View Audit 391086

Finding 1177673 (2024-011)

Material Weakness 2024

Southeast New Mexico College

NM

Matching / Level of Effort / Earmarking Questioned Costs Allowable Costs / Cost Principles § 200.302 § 200.305

Recommendation We recommend the College establish the required written procedures for federal monies and have them available to all personnel who work with federal programs Management Response Corrective Action Unfortunately, due to the untimely completion and release of the June 30, 2023 audit repo...

Recommendation We recommend the College establish the required written procedures for federal monies and have them available to all personnel who work with federal programs Management Response Corrective Action Unfortunately, due to the untimely completion and release of the June 30, 2023 audit report (released on August 8, 2025 - over two years after the end of the June 30, 2023 fiscal year audit), the College did not have the opportunity to review and begin a timely process of addressing a majority of the audit findings until well after the end of the audit period. While the College is committed to corrective action, the delayed delivery of the June 30, 2023 audit limited the ability to implement corrective measures earlier. The College is working proactively to ensure that these issues are resolved going forward. It is important to note that Southeast New Mexico College was a newly established independent community college, having formally separated from New Mexico State University (NMSU) as of April 2022. During this transition period, many administrative processes, including federal grant compliance procedures, were in the process of being developed, transitioned, and implemented independently from NMSU systems. As a result, certain policies, procedures, and documentation processes were not yet fully established or operational at the time of the audit. Corrective Action Taken / Planned: Policy Development • The institution will develop comprehensive written policies and procedures to address compliance requirements related to 2 CFR 200, Subparts D and E of the Uniform Guidance and approved by institutional leadership by July 31, 2025. Policy Review and Approval • Draft policies will be reviewed by VP of Business and Finance and approved by institutional leadership by August 31, 2025. Training • Relevant personnel will be trained on the new policies and procedures to ensure consistent understanding and compliance. Implementation • The institution will fully implement the new procedures by August 31, 2025, and will ensure all departments involved with federal awards are following them. Ongoing Review: • Policies and procedures will be reviewed annually, and updates will be made as necessary to ensure continued compliance with federal regulations. Date of Completion: August 31, 2025 Responsible Parties Vice President for Business and Finance (or appropriate official), Dean of Business and Finance, Director of Finance, Restricted Funds Manager

View Audit 391086

Finding 1177643 (2024-007)

Material Weakness 2024

Jackson County

OH

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.403

The Sheriff’s Office has separated from the person who oversaw these grants. New procedures have been implemented, and the Chief Deputy is now involved in overseeing these grants as well.

View Audit 391060

Finding 1177046 (2024-007)

Material Weakness 2024

County of Delta

MI

Allowable Costs / Cost Principles Cash Management Questioned Costs § 200.303

2024-007: Material Weakness and Noncompliance – Written Policies Required by the Uniform Guidance Statement of Condition/Criteria: Delta County does not have written policies and procedures to implement the requirements of 2 CFR section 200 for the administration of federal awards. 2 CFR 200.303(a) ...

2024-007: Material Weakness and Noncompliance – Written Policies Required by the Uniform Guidance Statement of Condition/Criteria: Delta County does not have written policies and procedures to implement the requirements of 2 CFR section 200 for the administration of federal awards. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the conditions of the federal award. Planned Corrective Action: County management will develop written policies and procedures for grants. Contact person responsible for corrective action: Emily DeSalvo, County Administrator Anticipated Completion Date: March 2026

View Audit 390939

Finding 1177043 (2024-006)

Material Weakness 2024

County of Delta

MI

Reporting Allowable Costs / Cost Principles § 200.303 § 200.502 § 200.510

2024-006: Material Weakness and Noncompliance – Preparation of Schedule of Expenditures of Federal Awards (SEFA) Statement of Condition/Criteria: The Code of Federal Regulations requires a non-federal entity to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the...

2024-006: Material Weakness and Noncompliance – Preparation of Schedule of Expenditures of Federal Awards (SEFA) Statement of Condition/Criteria: The Code of Federal Regulations requires a non-federal entity to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section 200.502(a) and must reconcile amounts reported in the SEFA to the amounts reported in the auditee’s financial statements. Planned Corrective Action: County management will develop a closing process to ensure all federal expenditures are identified, recorded, and reconciled on the SEFA. Contact person responsible for corrective action: Emily DeSalvo, County Administrator Anticipated Completion Date: March 2026

View Audit 390939

Finding 1177009 (2024-005)

Material Weakness 2024

City of Compton

CA

Questioned Costs Allowable Costs / Cost Principles Reporting

Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation and has implemented hiring for temporary work assignments in order to facilitate update. Corrective Action Plan: The HR and payroll software will be updated by the City by December 2026. Planned ...

Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation and has implemented hiring for temporary work assignments in order to facilitate update. Corrective Action Plan: The HR and payroll software will be updated by the City by December 2026. Planned Implementation Date: December 2026 Responsible Person(s): City Manager

View Audit 390871

Finding 1177005 (2024-002)

Material Weakness 2024

Smithfield Housing Authority

RI

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.403

Smithfield Housing Authority invoices are now reviewed by the Executive Director prior to approval and payment. Supervisory review has been strengthened to ensure compliance with federal cost principles. In addition, monthly reviews of program expenditures for our regular board meetings, including t...

Smithfield Housing Authority invoices are now reviewed by the Executive Director prior to approval and payment. Supervisory review has been strengthened to ensure compliance with federal cost principles. In addition, monthly reviews of program expenditures for our regular board meetings, including the Housing Voucher Cluster, are already in place. This helps to verify accuracy and appropriate allocation of costs.

View Audit 390862

Finding 1176871 (2024-001)

Material Weakness 2024

Lifespan Corporation and Affiliates

RI

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

Corrective Action Plan Year Ended September 30, 2024 Finding 2024-001 AL Numbers: 97.036 Program: Disaster Grants – Public Assistance (Presidentially Declared Disasters) Correction Action: We will identify and quantify the total amount of the labor cost overstatement. We will report our results to t...

Corrective Action Plan Year Ended September 30, 2024 Finding 2024-001 AL Numbers: 97.036 Program: Disaster Grants – Public Assistance (Presidentially Declared Disasters) Correction Action: We will identify and quantify the total amount of the labor cost overstatement. We will report our results to the granting agency and work with them to resolve the questioned costs by May 31, 2026. To prevent recurrence, management will revise our review control of project applications to reconcile the calculation file to invoice support to verify accuracy. Contacts: Stephen Almonte, VP of Finance and Corporate Controller Salmonte3@brownhealth.org Mark Adelman, Director Public Policy and Federal Advocacy Madelman@brownhealth.org Planned Completion Date: May 31, 2026

View Audit 390719

Finding 1176616 (2024-002)

Material Weakness 2024

Kankakee County Community Services

IL

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

Finding 2024-002 Grant Budget Management Corrective Action Plan: Kankakee County Community Services, Inc. has implemented a comprehensive system to manage its grant budgets efficiently. Following the restructuring of its fiscal department and the engagement of an accounting firm, the organization es...

Finding 2024-002 Grant Budget Management Corrective Action Plan: Kankakee County Community Services, Inc. has implemented a comprehensive system to manage its grant budgets efficiently. Following the restructuring of its fiscal department and the engagement of an accounting firm, the organization established a robust, holistic process for overseeing all grant-related finances. Central to this approach is a budget monitoring calendar, which outlines key dates for report submissions, budget deadlines, and grant renewal periods. This calendar is accessible to all managers, fiscal staff, and the executive team, ensuring everyone remains informed of critical timelines. The Executive Director conducts weekly meetings with the senior leadership team to review ongoing tasks and discuss budget updates. During these meetings, the consultant CFO presents detailed reports on both required actions and the expenditures for each program. Person(s) Responsible: Mr. Anibal Vega Timing for Implementation: 3/1/2026

View Audit 390449

Finding 1176612 (2024-002)

Material Weakness 2024

Clare|matrix

CA

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Responsible Official's Response: In addition to our response to Finding 2024-001, we have hired a new Director of Human Resources as of December 2023. Most of the issues regarding record retention revolve around HR documentation. As such our new Director will have a significant impact on this proces...

Responsible Official's Response: In addition to our response to Finding 2024-001, we have hired a new Director of Human Resources as of December 2023. Most of the issues regarding record retention revolve around HR documentation. As such our new Director will have a significant impact on this process going forward more so in FY 24-25 rather than FY 23-24. We have taken steps to insure the Human Resources records are audit ready and we have implemented our own internal review process to insure record readiness.

View Audit 390433

Finding 1176453 (2024-003)

Material Weakness 2024

Every Woman's Place

MI

Allowable Costs / Cost Principles Equipment & Real Property Management § 200.302 § 200.313 § 200.318 § 200.403

Every Woman's Place has fully implemented corrective action to address the induirect cost calculation and reporting issues identified in this exception. The Agency has formally adopted a signle direct allocation methodlogy, consistent with it FY2021 cost allocation plan, and has discontinued the use...

Every Woman's Place has fully implemented corrective action to address the induirect cost calculation and reporting issues identified in this exception. The Agency has formally adopted a signle direct allocation methodlogy, consistent with it FY2021 cost allocation plan, and has discontinued the use of de minimis or alternative indirect cost methodlogies. The cost allocation policy has been updated to clearly define the approved allocation medthod, allocation bases (included square footage, FTE, and usage where applicable), and the treatment of administrative and shred costs. This methodology is applied conssitently across allo programs and funding sources to ensure equitable distribution and compliance with 2 CFR 200 requirements. In addition, the Agency now requires annual board-approved certification of the cost allocation methodlogy. Allocation calculation are documented using standardized worksheets and reviewed as part of the monthly and quarterly financial review process to ensure accuracy and consistency prior to financial reporting and FSR submission. The procedures are documented in the Agency's Fiscal and Cost Allocation procedures manual and are fully operational

View Audit 390265

Finding 1176452 (2024-002)

Material Weakness 2024

Every Woman's Place

MI

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

We are workiing to review the current process and procedures manual and plan to have the fully updated by March 1st, 2026. All policies and procedures will be implemented at that time and will ensure that they meet state and federal accounting standards.

View Audit 390265

Corrective Action Plans

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