Corrective Action Plans

Finding 1166202 (2025-003)

Material Weakness 2025

MI

Procurement, Suspension & Debarment Subrecipient Monitoring Cash Management

RESPONSE: The practice of checking the debarment list had occurred in the past; the keeping of a "proof of practice" was not done. Going forward, this practice will be documented. TIMEFRAME FOR CORRECTIVE ACTION: Immediate. RESPONSIBLE CONTACT PERSON: Katy Posey, Financial Director/Treasurer

View Audit 377112

Finding 1166187 (2025-002)

Material Weakness 2025

Port Allegany School District

PA

Internal Control / Segregation of Duties Cash Management

Auditors’ Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. Dis...

Auditors’ Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. District’s Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.

View Audit 377074

Finding 1166140 (2025-001)

Material Weakness 2025

Southern Cayuga Central School District

NY

Cash Management HUD Housing Programs School Nutrition Programs § 200.303

The District agrees with this finding and will be implementing a new policy which includes a Finance Office verification of the meal counts submitted when the deposits come in through Child Nutrition to ensure that the reports match the deposit and the reports match the internal reports for meal cou...

The District agrees with this finding and will be implementing a new policy which includes a Finance Office verification of the meal counts submitted when the deposits come in through Child Nutrition to ensure that the reports match the deposit and the reports match the internal reports for meal counts The District was able to recoup the funds from the missing months by submitting corrected claims.

View Audit 377006

Finding 1166111 (2025-001)

Material Weakness 2025

South Sioux City Community Schools District #11

NE

Cash Management Reporting Significant Deficiency

Processes have been implemented to improve and maintain documentation for grant reimbursement requests so overclaiming federal funds does not occur.

View Audit 376904

Finding 1165912 (2025-002)

Material Weakness 2025

Otto-Eldred School District

PA

Internal Control / Segregation of Duties Cash Management

Adjusting Journal Entries, Required Disclosures, and Draft Financial Statements, Year ended June 30, 2025. Auditor's Recommendation: Although auditors may continue to provide such assistance both now and, in the future, under the new pronouncement, the District should continue to review and accept b...

Adjusting Journal Entries, Required Disclosures, and Draft Financial Statements, Year ended June 30, 2025. Auditor's Recommendation: Although auditors may continue to provide such assistance both now and, in the future, under the new pronouncement, the District should continue to review and accept both propsed adjusting journal entries and footnore disclosures, along with the draft financial statements. District's Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgements based on these financial statements.

View Audit 376816

Finding 1165860 (2025-001)

Material Weakness 2025

Neighborhood Housing Services of Chicago, Inc. and Related Entities

IL

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303

Condition: The Organization did not review period end reimbursement requests for costs that had been expended and requested in prior months. The lack of proper review resulted in the Organization charging duplicate costs of $95,294. Planned Corrective Action: The CFO maintains a payout tracker which...

Condition: The Organization did not review period end reimbursement requests for costs that had been expended and requested in prior months. The lack of proper review resulted in the Organization charging duplicate costs of $95,294. Planned Corrective Action: The CFO maintains a payout tracker which is updated every time a vendor payout is made and tracks that payment to the reimbursement request and the final payment by the pass-through agency. This process ensures that a payout is not included in a payout request multiple times. The Staff Accountant also maintains a tracker of all reimbursement requests to track with the program budgets and for inclusion in the MIP accounting system. In addition, new personnel are involved in the process with a more formal approval and authorization process implemented. The Organization’s staff has communicated these duplicate requests to the appropriate personnel at the granting agency and are coordinating the repayment of the excess funds as determined by the granting agency. Contact person responsible for corrective action: Tom Sakos, Chief Financial Officer, and Jenny Cuitiva, Accounting Manager Anticipated Completion Date: May 1, 2025 for implementing controls and November 30, 2025 for communicating with the granting agency.

View Audit 376751

Finding 1165846 (2025-001)

Material Weakness 2025

YWCA Evanston/north Shore

IL

Cash Management Reporting

Condition: YWCA Evanston/North Shore did not submit its fiscal year 2024 Data Collection Form and single audit reporting package to the Federal Audit Clearinghouse within the earlier of nine months following its fiscal year end, or 30 days after receipt of the auditors' report. Corrective Action Tak...

Condition: YWCA Evanston/North Shore did not submit its fiscal year 2024 Data Collection Form and single audit reporting package to the Federal Audit Clearinghouse within the earlier of nine months following its fiscal year end, or 30 days after receipt of the auditors' report. Corrective Action Taken or Planned: Management concurs and plans to submit the June 30, 2024 data collection form and single audit reporting package on or before December 31, 2025. Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Laura Moorehead, Vice President of Finance and Operations Management Response: Management concurs with the finding.

View Audit 376711

Finding 1165832 (2025-003)

Material Weakness 2025

Independent School District No. 361

MN

Allowable Costs / Cost Principles Cash Management Reporting

Recommendation: We recommend the District have someone reviewing all Clics reports before they are submitted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will implement policies to ensure the Clics...

Recommendation: We recommend the District have someone reviewing all Clics reports before they are submitted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will implement policies to ensure the Clics reports are reviewed before submission. Name of the contact person responsible for corrective action: Lauren Syrup, Business Manager Planned completion date for corrective action plan: June 30, 2026

View Audit 376704

Finding 1165807 (2025-002)

Material Weakness 2025

Second Harvest Heartland

MN

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.303

Audit Finding: ALN: 10.565 Grant No.: 204642 Grant Period: Year ended September 30, 2025 Type of finding – Significant deficiency in internal control over compliance Response: Agree Explanation/Corrective Action:  Reviewing Source Data: o The individual reviewing the documentation is different than...

Audit Finding: ALN: 10.565 Grant No.: 204642 Grant Period: Year ended September 30, 2025 Type of finding – Significant deficiency in internal control over compliance Response: Agree Explanation/Corrective Action:  Reviewing Source Data: o The individual reviewing the documentation is different than the individual who prepares the documentation. o When reviewing the documentation to be used when submitting reimbursement requests to the state, the reviewer will be required to compare this documentation to the organization’s ERP system. This is the official source of record for all reimbursement requests. Anticipated Completion Date: This process was fully implemented at the beginning of November 2025.

View Audit 376643

Finding 1165757 (2025-001)

Material Weakness 2025

Cadillac Area Public Schools

MI

Subrecipient Monitoring Cash Management Reporting

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim used incomplete Z-Reports which resulted in the meal claim being submitted for less than it should have been. Not al...

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim used incomplete Z-Reports which resulted in the meal claim being submitted for less than it should have been. Not all dining locations had their final meal counts completed before the meal claim was submitted. The persons responsible for the corrective action are Aaron Burnett, the Food Service Director and Emily Kearney, the Business Manager. The anticipated completion date of the corrective action plan is immediate. The plan for monitoring adherence is the Food Service Director will ensure that all meal counts are final on the Z-Report before the claim requests are made.

View Audit 376550

Finding 1165737 (2025-002)

Material Weakness 2025

McAullife Apartments, Inc.

TN

Cash Management HUD Housing Programs

Management agrees with the finding will take action to implement the recommendation as soon as cash flow allows.

View Audit 376523

Finding 1165714 (2025-001)

Material Weakness 2025

Pond Street Housing Development Fund Company INC

NY

HUD Housing Programs Cash Management

U.S. Department of Housing and Urban Development Pond Street Housing Development Fund Company, Inc. (Bishop Harrison Apartments), HUD Project No. 014-11248 respectfully submits the following corrective action plan for the year ended March 31, 2025. Name and address of independent public accounting f...

U.S. Department of Housing and Urban Development Pond Street Housing Development Fund Company, Inc. (Bishop Harrison Apartments), HUD Project No. 014-11248 respectfully submits the following corrective action plan for the year ended March 31, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: April 1, 2024 – March 31, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Our auditors recommended that we ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Action Taken: Bishop Harrison Apartments made the required deposit on June 27, 2024. Name of Contact Person Responsible for Corrective Action: John Lutz, Vice President of Finance, (315) 424-1821. Completion Date: June 27, 2024

View Audit 376453

Finding 1165672 (2025-001)

Material Weakness 2025

Marshall Public Schools

MO

Cash Management School Nutrition Programs

U.S. Department of Education Marshall Public Schools respectfully submits the following Corrective Action Plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Caleb Petet, Superintendent Marshall Public Schools Independent Public Accoun...

U.S. Department of Education Marshall Public Schools respectfully submits the following Corrective Action Plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Caleb Petet, Superintendent Marshall Public Schools Independent Public Accounting Firm: Gerding, Korte & Chitwood, P.C., 723 Main Street, Boonville, MO 65233 Audit Period: Year ended June 30, 2025 The findings from the June 30, 2025, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Significant Deficiency 2025-001 Child Nutrition Cluster Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements.

View Audit 376342

Finding 1165672 (2025-001)

Material Weakness 2025

Marshall Public Schools

MO

Cash Management School Nutrition Programs

The Marshall Public School District has been working to utilize excess food service funds in an appropriate and timely manner. Recently, these funds supported significant cooler and freezer replacements and repairs, including work already completed in the new kitchen at our Intermediate School. Addi...

The Marshall Public School District has been working to utilize excess food service funds in an appropriate and timely manner. Recently, these funds supported significant cooler and freezer replacements and repairs, including work already completed in the new kitchen at our Intermediate School. Additional units were repaired or replaced in the fall of 2025. The final remaining capital items include a newly purchased distribution vehicle for mobile meal delivery to sites without kitchens and distribution of commodities delivered to a central site. There will be an additional cooler to be acquired before the end of the 2025 fiscal year for our newly constructed distribution site, as well as other costs at that site for completion of the distribution facility. These purchases support operations in our new distribution building, where commodities are delivered, stored, and distributed from as needed throughout the year. Looking ahead, the district plans to replace movable supplies and equipment throughout the 2025–26 school year. Specifically, we are preparing to add new food service lines with additional points of sale to improve efficiency and decrease wait times, as well as purchase the associated POS licenses. We will also upgrade selected appliances and cabinetry to modernize and improve efficiency in kitchens located in older buildings around the district. In addition, as needed or upon request, we intend to provide further professional development opportunities for our food service staff. Collectively, these actions will ensure that no excess funds remain in the food service account by the end of the current fiscal year.

View Audit 376342

Finding 1165672 (2025-001)

Material Weakness 2025

Marshall Public Schools

MO

Cash Management School Nutrition Programs

November 20, 2025, U.S. Department of Education Marshall Public Schools respectfully submits the following Corrective Action Plan for the year ended June 30, 2025.Contact information for the individual responsible for the corrective action: Caleb Pete, Superintendent, Marshall Public Schools Indepen...

November 20, 2025, U.S. Department of Education Marshall Public Schools respectfully submits the following Corrective Action Plan for the year ended June 30, 2025.Contact information for the individual responsible for the corrective action: Caleb Pete, Superintendent, Marshall Public Schools Independent Public Accounting Finn: Gerding, Korte & Chitwood, P.C., 723 Main Street Boonville, MO 65233 Audit Period: Year ended June 30, 2025 The findings from the June 30, 2025, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Significant Deficiency 2025-001 Child Nutrition Cluster Recommendation: \Ve recommend that fund balances should be monitored to ensure that balances remain io line with child nutrition compliance requirements. Action Taken: The Marshall Public School District has been working to utilize excess food service funds in an appropriate and timely manner. Recently, these funds supported significant cooler and freezer replacements and repaiTs, including work already completed in the new 51 kitchen at our Intermediate School. Additional units were repaired or replaced in the fall of 2025. The final remaining capital items include a newly purchased distribution vehicle for mobile meal delivery to sites without kitchens and distribution of commodities delivered to a central site. There will be an additional cooler to be acquired before the end of the 2025 fiscal year for our newly constructed distribution site, as well as other costs at that site for completion of the distribution facility. These purchases support operations in our new distribution building, where commodities are delivered, stored, and distributed from as needed throughout the year. Looking ahead, the district plans to replace movable supplies and equipment throughout the 2025-26 school year. Specifically, we are preparing to add new food service lines with additional points of sale to improve efficiency and decrease wait times, as well as purchase tbc associated POS licenses. We will also upgrade selected appliances and cabinetry to modernize and improve efficiency in kitchens located in older buildings around the district. In addition, as needed or upon request, we intend to provide further professional development opportunities for our food service staff. Collectively, these actions will ensure that no excess funds remain in the food service account by the end of the current fiscal year. Completion Date: June 30, 2026 Caleb Petet, Superintendent Marshall Public Schools

View Audit 376342

Finding 1165672 (2025-001)

Material Weakness 2025

Marshall Public Schools

MO

Cash Management School Nutrition Programs

Completion Date: June 30, 2026 Sincerely, Caleb Petet, Superintendent Marshall Public Schools

View Audit 376342

Finding 1165631 (2025-003)

Material Weakness 2025

School District of Auburndale

WI

Internal Control / Segregation of Duties Cash Management HUD Housing Programs

Child Nutrition Cluster – Assistance Listing No. 10.553 and 10.555 Recommendation: The auditors recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is different from the individual responsib...

Child Nutrition Cluster – Assistance Listing No. 10.553 and 10.555 Recommendation: The auditors recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is different from the individual responsible for preparing, even when there are gaps of coverage in preparer and reviewer positions, and that the review and approval happens prior to submitting the reports to the granting agency. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District acknowledges the oversight in the separation of duties for preparation and reviewing of reports. Corrective measures have been implemented to require assignment of a preparer different from the approver before finalizing the report. The procedures for submitting monthly claims have been updated to include submitting the report to the Finance Director for review and approval prior to submission. The Finance Director has added a monthly calendar reminder to review claim submission reports as part of the internal control process. Name(s) of the contact person(s) responsible for corrective action: Steven Van Wyhe Planned completion date for corrective action plan: Immediately

View Audit 376301

Finding 1165628 (2025-001)

Material Weakness 2025

Mesick Consolidated Schools

MI

Subrecipient Monitoring Cash Management Reporting

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim had an incorrect subtotal of meals disbursed which resulted in the meal claim being submitted for less than it shoul...

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim had an incorrect subtotal of meals disbursed which resulted in the meal claim being submitted for less than it should have been. There is a chance that the claim was done for the correct amount, but the supporting documentation shows that the District claimed less than they were allowed to. The District is going to ensure that all totals are subtotaled correctly in the future and double checked before the claim request is made. The persons responsible for the corrective action are Jack Ledford, the Food Service Director and Katrina Bontekoe, the Business Manager. The anticipated completion date of the corrective action plan is immediate. The plan for monitoring adherence is the Food Service Director will ensure that funds requested for meal reimbursements agree to total meals served.

View Audit 376300

Finding 1165624 (2025-005)

Material Weakness 2025

Columbus School District

WI

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

2025-005 – Medicaid – Allowable Activities and Costs The District is aware of the student’s receiving benefits need to have their billed services included in their IEPs. Responsible Officials – Beth Munson, Director of Business Services and Lisa Blochwitz, Director of Student Services Anticipated Co...

2025-005 – Medicaid – Allowable Activities and Costs The District is aware of the student’s receiving benefits need to have their billed services included in their IEPs. Responsible Officials – Beth Munson, Director of Business Services and Lisa Blochwitz, Director of Student Services Anticipated Completion Date – The District intends to work towards resolving this finding for the following year.

View Audit 376290

Finding 1165623 (2025-001)

Material Weakness 2025

Pathways Behavioral Services, Inc.

IA

Eligibility Subrecipient Monitoring Cash Management

Pathways executive management team will provide at least quarterly trainings on any changes in state of federal funding guidance and ensure implementation of this guidance is clear through regular contact with state and federal agencies.

View Audit 376282

Finding 1165469 (2025-004)

Material Weakness 2025

Clintondale Community Schools

MI

Cash Management Subrecipient Monitoring Material Weakness

see corrective action plan

View Audit 376196

Finding 1165467 (2025-002)

Material Weakness 2025

Clintondale Community Schools

MI

Cash Management Subrecipient Monitoring Material Weakness

see corrective action plan

View Audit 376196

Finding 1165456 (2025-001)

Material Weakness 2025

Aldine Independent School District

TX

Allowable Costs / Cost Principles Reporting Subrecipient Monitoring § 200.302 § 200.303

Corrective Action Plan for Federal Award Audit Finding 2025-001 Finding Title: Allowable Costs/Cost Principles – Improper expenditure recognition Federal Program: Title II, Part A, Teacher & Principal Training and Recruiting Assistant Listing Number: 84.367A Federal Agency Name: U.S. Department of E...

Corrective Action Plan for Federal Award Audit Finding 2025-001 Finding Title: Allowable Costs/Cost Principles – Improper expenditure recognition Federal Program: Title II, Part A, Teacher & Principal Training and Recruiting Assistant Listing Number: 84.367A Federal Agency Name: U.S. Department of Education Passed-Through Agency Name: Texas Department of Education Type of Finding: Significant Deficiency in Internal Control over Compliance Description of Corrective Action The District acknowledges the internal control system did not timely detect the improper recognition of expenditures in the incorrect fiscal period. It is important to emphasize that the expenditures identified were ultimately removed from the current year activity and were excluded from the year-end reimbursement request. The District commits to strengthening its year-end closing procedures and providing comprehensive training to address the noted deficiency in monitoring and review. The following actions will be taken: Mandatory Staff Training on Expenditure Cut-off and Accruals The District will develop and implement mandatory, targeted training for all personnel responsible for processing, recording, reconciling, and reviewing federal grant expenditures, with a specific focus on year-end cut-off procedures and proper expense recognition (accruals versus prepaid expenses). Implementation of Formal Grant Expenditure Cut-off Review Procedure A formalized closing procedure will be implemented for all federal awards, ensuring a mandatory, documented review of expenditures and payables near the fiscal year-end. Persons Responsible Timothy Momanyi, Chief Financial Officer Thania Gonzalez, Assistant Superintendent of Business and Finance Anticipated Completion Date The initial staff training will occur by May 31, 2026. The full implementation of the new procedures, with documented adherence by all responsible staff, will be complete by June 30, 2026, ensuring the new controls are fully operational before the close of the 2025-2026 fiscal year.

View Audit 376161

Finding 1165448 (2025-002)

Material Weakness 2025

Westmoreland County Community College

PA

Student Financial Aid Subrecipient Monitoring Cash Management

Finding 2025-002: Student Financial Aid Cluster – Reporting View of Responsible Officials and Planned Corrective Action: Root Cause Errors occurred because the data file transmitted from Anthology to COD did not consistently include the correct student information. It is not yet clear whether the is...

Finding 2025-002: Student Financial Aid Cluster – Reporting View of Responsible Officials and Planned Corrective Action: Root Cause Errors occurred because the data file transmitted from Anthology to COD did not consistently include the correct student information. It is not yet clear whether the issue arises from configuration problems, system design limitations, or both. Planned Corrective Action and Responsible Officials • Procedure review and update. The Financial Aid Office will review and revise procedures to ensure accurate, timely, and complete reporting to COD, including pre-submission and post-submission checks. • System-to-COD file analysis with Anthology. In partnership with Anthology's support and managed services teams, the College will: o o o Analyze how COD reporting files are created within Anthology. Identify why certain student data elements are not being transmitted correctly. Implement configuration changes or other system-level fixes to ensure accurate and complete reporting. • Enhanced manual validation until issues are resolved. If the file creation process is determined to be working "as designed" but still does not meet regulatory expectations, Financial Aid staff will perform manual review and correction of COD files prior to submission, and will monitor error and rejection reports from COD for follow-up. As with Finding 2025-001, the Vice President for Student Affairs and the Director of Financial Aid share responsibility for ensuring these corrective actions are implemented and sustained commencing on the date set forth above.

View Audit 376153

Finding 1165428 (2025-002)

Material Weakness 2025

Detroit Public Schools Community District

MI

Reporting Subrecipient Monitoring Cash Management § 200.303

Condition: The School District's controls did not prevent, or detect and correct in a timely manner, duplicative costs charged to the grant. Planned Corrective Action: The District annually processes thousands of supplemental payments for Home Visits. The audit found only 5 individual payments were ...

Condition: The School District's controls did not prevent, or detect and correct in a timely manner, duplicative costs charged to the grant. Planned Corrective Action: The District annually processes thousands of supplemental payments for Home Visits. The audit found only 5 individual payments were duplicated. The duplication was caused by human error during an internal staff transition within the Family and Community Engagement (FACE) department. This led the new manager to incorrectly report employee home visit logs twice. The FACE team will add internal controls during staff transitions to ensure documentation is not duplicated. Contact person responsible for corrective action: Jeremy Vidito, CFO Anticipated Completion Date: January 1, 2026

View Audit 376137

Corrective Action Plans

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