Corrective Action Plans

Finding 1206525 (2025-001)

Material Weakness 2025

Guadalupe County Hsg Development Inc. (sunrise Villa Apts)

TX

Cash Management HUD Housing Programs

Management agrees with the finding. The residual receipts account deficiency was funded on January 15, 2026 in the amount of $34,482. Management will ensure that the residual receipts account is properly funded in the future.

View Audit 398589

Finding 1206492 (2025-001)

Material Weakness 2025

Focus: Hope and Subsidiaries

MI

Cash Management Subrecipient Monitoring Reporting § 200.305

Management has agreed to closely monitor the receipt of federal funds and disburse those funds timely in order to ensure compliance with this regulation. The Cash Balance Report that is updated daily of all incoming receipts will be used as a tool to ensure expenses incurred are paid timely in the w...

Management has agreed to closely monitor the receipt of federal funds and disburse those funds timely in order to ensure compliance with this regulation. The Cash Balance Report that is updated daily of all incoming receipts will be used as a tool to ensure expenses incurred are paid timely in the weekly disbursements.

View Audit 398559

Finding 1206485 (2025-001)

Material Weakness 2025

APPALACHIAN WILDLIFE FOUNDATION, INC.

OH

Cash Management Period of Performance Reporting

AUDIT FINDINGS Finding Reference Number: 2025-001 Description of Finding: Finding 2025-001 – Lack of Internal Control Over Financial Reporting – Federal Revenue Not Recognized Criteria – Standard accounting practices dictate that revenues be recognized in period of performance of the underlying cont...

AUDIT FINDINGS Finding Reference Number: 2025-001 Description of Finding: Finding 2025-001 – Lack of Internal Control Over Financial Reporting – Federal Revenue Not Recognized Criteria – Standard accounting practices dictate that revenues be recognized in period of performance of the underlying contract or service. Condition – Grant Draw Request #7 for $749,108 was submitted to the Cumberland Valley Area Development District for payment and approved on June 19, 2025 and an Appalachian Regional Commission (ARC) development grant reimbursement was sent by CVADD the to the Organization’s dedicated ARC grant reimbursement bank account on July 3, 2025 and the contractor was subsequently and appropriately paid.. The ARC grant revenue and the associated capitalized expenditure were not recognized as revenue and receivable in the Organization’s accounting records. Effect – The Organization’s ARC grant revenue and capital expenditures were understated by $749,108. Recommendation – The Organization’s accountant should reconcile the dedicated ARC grant reimbursement account to the ARC draw requests submitted to Cumberland Valley Area Development District. Statement of Concurrence or Nonconcurrence: Management agrees with this finding Corrective Action: The Organization will work with its consultant accountants to verify federal funds expended at the end of the fiscal year and to account for any potential receivables. Name of Contact Person: Frank Allen, Chairman of the Board of Directors Fallen@cms501c.com Projected Completion Date: June 30, 2026 Sincerely yours, Frank Allen Frank Allen, Chairman of the Board of Directors Appalachian Wildlife Foundation

View Audit 398531

Finding 1206469 (2025-001)

Material Weakness 2025

White County Central School District

AR

Cash Management § 200.305

The District will implement procedures to ensure drawdowns are timed with the District's immediate cash requirements.

View Audit 398470

Finding 1206465 (2025-001)

Material Weakness 2025

Adventhealth University

FL

Student Financial Aid Cash Management Reporting

The finding was in the No Passing Grade selection. Due to the way the institution tracks attendance, the student was listed as having earned an F instead of being administratively withdrawn. The institution will now start using a new report. This report will track: o Any student with a no passing gr...

The finding was in the No Passing Grade selection. Due to the way the institution tracks attendance, the student was listed as having earned an F instead of being administratively withdrawn. The institution will now start using a new report. This report will track: o Any student with a no passing grade o Any student in this category who received financial aid. IT has developed this report and the report is identified as the No passing Grades report. This will allow the institution to review and determine if the student needs to be considered as an unofficial withdrawal and whether or not an R2T4 is needed. The FA Business Systems analyst will run this report at the end of each term when grades have been issued. The institution will also meet with the Faculty Senate to put a process in place which will determine whether the student who earned a no passing grade participated in the course or should have been administratively withdrawn at the time grades are issued. This will help the institution to determine if an R2T4 calculation was needed and allow for a timely return of funds.

View Audit 398469

Finding 1206425 (2025-003)

Material Weakness 2025

Streator Esd No. 44

IL

Cash Management

The District will monitor the cash position of the food service program on a three month rolling average to ensure funds are not accumulated.

View Audit 398412

Finding 1206422 (2025-004)

Material Weakness 2025

Clintonville Public School District

WI

Internal Control / Segregation of Duties Cash Management Eligibility

Recommendation: We recommend the District establish a procedure for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Additionally, we recommend the district designate an individual to review eligibility and ve...

Recommendation: We recommend the District establish a procedure for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Additionally, we recommend the district designate an individual to review eligibility and verification determinations for accuracy and proper input into software. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Food Service Director will review eligibility and verification determinations for accuracy and proper input into the software. The District will continue to improve on reviewing and approval of claims. Name of the contact person responsible for correction action: Jessica Holtz Planned completion date for corrective action: June 30, 2026

View Audit 398410

Finding 1206396 (2025-005)

Material Weakness 2025

Dolton West School District 148

IL

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

Condition: The District claimed expenditures that did not have adequate supporting documentation, such as invoices, receipts, purchase orders and proof of payment. Plan: Management will review its policies and procedures and implement changes to strengthen internal control over compliance. Grant exp...

Condition: The District claimed expenditures that did not have adequate supporting documentation, such as invoices, receipts, purchase orders and proof of payment. Plan: Management will review its policies and procedures and implement changes to strengthen internal control over compliance. Grant expenditures will be reviewed and approved by appropriate personnel prior to reimbursement requests being submitted. Responsible Person: Dr. Mable Alfred, Interim Superintendent. Anticipated Completion Date: June 30, 2026

View Audit 398399

Finding 1206394 (2025-004)

Material Weakness 2025

Dolton West School District 148

IL

Cash Management Period of Performance Internal Control / Segregation of Duties

Condition: The District claimed expenditures that were incurred outside of the applicable periods of performance.Plan: Management will review its policies and procedures and implement changes to strengthen internal control over compliance. Grant expenditures will be reviewed and approved by appropri...

Condition: The District claimed expenditures that were incurred outside of the applicable periods of performance.Plan: Management will review its policies and procedures and implement changes to strengthen internal control over compliance. Grant expenditures will be reviewed and approved by appropriate personnel prior to reimbursement requests being submitted. Responsible Person: Dr. Mable Alfred, Interim Superintendent. Anticipated Completion Date: June 30, 2026

View Audit 398399

Finding 1206313 (2025-001)

Material Weakness 2025

Strawberry Fields Apartments, Inc.

AR

HUD Housing Programs Cash Management

Strawberry Fields, Inc. respectfully submits the following corrective action plan for the fiscal year ending June 30, 2025. Responsible Official: Katy Blevins, Executive Director Name and address of independent public accounting firm: Miller & Rose, P.A. 1309 East Race Searcy, AR 72143 Oversight Age...

Strawberry Fields, Inc. respectfully submits the following corrective action plan for the fiscal year ending June 30, 2025. Responsible Official: Katy Blevins, Executive Director Name and address of independent public accounting firm: Miller & Rose, P.A. 1309 East Race Searcy, AR 72143 Oversight Agency: U.S. Department of Housing and Urban Development The findings from the June 30, 2025 audit are discussed below. The findings are numbered to correspond to the audit findings disclosed in the Schedule of Findings and Questioned Costs. Department of Housing and Urban Development 2025-01 Replacement Reserve and Residual Receipts Accounts Federal Program: Supportive Housing for the Elderly, Federal Assistance Listing No. 14.157 Criteria: Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund in accordance with the regulatory agreement. All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). In addition, any surplus cash in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insured account within 90 days following the end of the fiscal year. Withdrawals from this account may be made only for project purposes and with the approval of HUD (24 CFR sections 891.400(e) and 891.600(e)). Condition: During the current fiscal year, the entity obtained HUD approval to withdraw funds from both the replacement reserve and the residual receipts account. The amount approved for withdrawal from the replacement reserve was $22,336.05 and the amount approved for withdrawal from the residual receipts account was $29,263.95. The total amount withdrawn from these two accounts is the total amount that was approved. However, the amount withdrawn from the replacement reserve account was $24,650.00 and the amount withdrawn from the residual receipts account was $26,950.00. As a result, $2,313.95 was withdrawn from the replacement account more than the amount approved. The amount withdrawn from the residual receipts account was less than the approved amount by the same $2,313.95. Questioned costs: None Context: The entity had approval to withdraw the total amount of funds that were withdrawn but inadvertently withdrew part of the funds from the wrong account. Effect: Amounts withdrawn from the replacement reserve were more than the approved amounts. Cause: The entity did not reconcile the amounts approved with the amounts withdrawn from each separate account. Recommendation: The entity should reimburse the replacement reserve account from the residual receipts account for $2,313.95. Views of responsible officials and planned corrective actions: A transfer was made on February 5, 2026, the date the error was discovered, in the amount of $2,313.95 to the replacement reserve account. Date of anticipated corrective action: The transfer that was made on February 5, 2026 corrected the issue and the matter is resolved.

View Audit 398373

Finding 1206289 (2025-003)

Material Weakness 2025

Veterans Northeast Outreach Center, Inc.

MA

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Cash Management

FINDING 2025-001 Corrective Action Plan During the fiscal year June 30, 2025, Veterans Northeast Outreach Center, Inc. (the Organization) began implementing procedures to strengthen its system of internal controls. The Organization continues efforts to strengthen its system of internal controls thro...

FINDING 2025-001 Corrective Action Plan During the fiscal year June 30, 2025, Veterans Northeast Outreach Center, Inc. (the Organization) began implementing procedures to strengthen its system of internal controls. The Organization continues efforts to strengthen its system of internal controls throughout fiscal year 2026 with a limited finance team. Internal controls improved include a rigorous review of tenant receivables and accounts payable. Responsible party: Jason Youngclaus; Chief Financial Officer; (978) 930-3830 Anticipated completion date: June 30, 2026 FINDING 2025-002 Corrective Action Plan Management will work to identify a process of reviewing journal entries on a regular basis. The challenge with implementing a journal review process is the limited staff to facilitate a multi-level review of journal entries. The Organization will be discussing internally and with the Board of Directors a manner in which this can be accomplished. Responsible party: Jason Youngclaus; Chief Financial Officer; (978) 930-3830 Anticipated completion date: June 30, 2026 FINDING 2025-003 Corrective Action Plan Refer to the corrective action plans for findings 2025-001 and 2025-002. Responsible party: Jason Youngclaus; Chief Financial Officer; (978) 930-3830 Anticipated completion date: June 30, 2026

View Audit 398344

Finding 1206212 (2025-001)

Material Weakness 2025

The Pavilion Housing Development Fund Corporation

NY

Cash Management HUD Housing Programs Internal Control / Segregation of Duties

Name of auditee: The Pavilion Housing Development Fund Corporation HUD auditee identification number: 012-EE247 Name of audit firm: WithumSmith+Brown, PC Period covered by the audit: Year Ended September 30, 2025 CAP prepared by: Name: Father Ronald Giannone Position: Executive Director Telephone: 6...

Name of auditee: The Pavilion Housing Development Fund Corporation HUD auditee identification number: 012-EE247 Name of audit firm: WithumSmith+Brown, PC Period covered by the audit: Year Ended September 30, 2025 CAP prepared by: Name: Father Ronald Giannone Position: Executive Director Telephone: 646-996-4234 1. Current Findings on the Schedule of Findings, and Questioned Costs a. Finding 2025-001. Special Tests and Provisions – Project Funds. i. Comments on the Finding and Each Recommendation: Management concurs with the finding and the auditor’s recommendation to utilize an interest-bearing account for project funds. ii. Actions Taken on the Finding: Management is in the process of evaluating the recommendation to determine that appropriate course of action. 2. Status of Corrective Actions on Findings Reported in the Prior Audit Schedule of Findings, and Questioned Costs. Finding 2024-001 - cleared. Delinquent deposits in the aggregated amount of $18,715 were funded in 2025.

View Audit 398176

Finding 1206160 (2025-003)

Material Weakness 2025

Lasalle-Peru Township Hsd No. 120

IL

Cash Management

The District will consider possible additional training and other opportunities to increase the likelihood that an error like this does not occur again.

View Audit 398157

Finding 1206076 (2025-001)

Material Weakness 2025

City of Webster

TX

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303 § 200.501 § 200.510

2025-001: Insufficient Controls Over Monitoring Federal Expenditures and SEFA Preparation (Significant Deficiency) The City concurs with the finding and will strengthen controls over monitoring federal expenditures and preparation of the Schedule of Expenditures of Federal Awards (SEFA). The Finance...

2025-001: Insufficient Controls Over Monitoring Federal Expenditures and SEFA Preparation (Significant Deficiency) The City concurs with the finding and will strengthen controls over monitoring federal expenditures and preparation of the Schedule of Expenditures of Federal Awards (SEFA). The Finance Department will implement centralized oversight of federal grant activity and maintain a grant tracking schedule to monitor cumulative federal expenditures by program, including reimbursements and receivables. Departments administering federal programs will be required to report grant expenditures to Finance, and periodic reconciliations will be performed between departmental records, reimbursement requests submitted to the pass-through agency, and amounts recorded in the general ledger. At year-end, the Finance Department will prepare the SEFA and perform a formal management review to ensure all federal expenditures are complete and accurately reported and evaluated against the Single Audit threshold in accordance with Uniform Guidance. Personnel involved in grant administration will receive training on applicable Uniform Guidance requirements to support compliance with federal reporting and monitoring requirements. Anticipated Completion Date: June 2026

View Audit 397998

Finding 1206070 (2025-001)

Material Weakness 2025

School District of Beloit

WI

Cash Management

Corrective Action Plan: The District acknowledges its lack of proper consent for billing and will continue to review its procedures for obtaining and maintaining consent forms to ensure that the District has appropriate permission to submit services for reimbursement through the SBS Medicaid System.

View Audit 397963

Finding 1206034 (2025-001)

Material Weakness 2025

Silver Lake Housing, Inc.

TX

Cash Management HUD Housing Programs Reporting

Condition: The tenant security deposit cash account was insufficient to cover the tenant security deposit liability. - Response: The reserve for replacement has ample funds to request reimbursements of qualified expenditures and Management plans to make a sizable request for funds in April 2026. If ...

Condition: The tenant security deposit cash account was insufficient to cover the tenant security deposit liability. - Response: The reserve for replacement has ample funds to request reimbursements of qualified expenditures and Management plans to make a sizable request for funds in April 2026. If approved, management can fund the deficiency in the security deposits. Management is also going to request a Budget Based Rent increase in May 2026 for the property due to the extraordinary escalation of operating costs of the last three years. Management believes that with these steps it will be able to return to its previous cash flow position.

View Audit 397875

Finding 1205928 (2025-002)

Material Weakness 2025

Accessible Residences, Inc. 113-Hd003

TX

HUD Housing Programs Allowable Costs / Cost Principles Cash Management

Special Tests – Significant Deficiency in Internal Controls over Compliance (Utility Allocation – Section 811 Program) Management Response Management acknowledges that utility allocation errors occurred in a limited number of instances due to a miscalculation in the allocation spreadsheet. Specifica...

Special Tests – Significant Deficiency in Internal Controls over Compliance (Utility Allocation – Section 811 Program) Management Response Management acknowledges that utility allocation errors occurred in a limited number of instances due to a miscalculation in the allocation spreadsheet. Specifically, utility expenses were allocated among four tenants instead of five occupied tenants, resulting in an overallocation of utility costs to certain residents. The error was due to an input/calculation issue within the allocation spreadsheet and not a deficiency in the underlying allocation methodology. The organization’s documented utility allocation policy requires that total utility costs be allocated equally among occupied tenants, which is consistent with HUD requirements. Management has evaluated the exceptions identified and determined that the issue was isolated to specific instances of spreadsheet error rather than a systemic failure of the allocation methodology. Corrective Actions Implemented / To Be Implemented • The utility allocation spreadsheet will be corrected to ensure that the total number of occupied tenants is accurately reflected in the allocation calculation. • A two-level review control will be implemented over utility allocations. The Leasing Assistant/Clerk will prepare the allocation, and the Leasing Manager will independently verify accuracy prior to finalization. • Verification will include tenant count validation to the rent roll or occupancy report, recalculation of the per-tenant allocation, and confirmation that total allocations agree to the original utility invoice. • Allocation schedules will be supported by rent roll or occupancy documentation. • A standardized checklist will be implemented for monthly allocation procedures. • Any identified allocation errors will be promptly corrected to ensure tenants are not overcharged. Training Training on utility allocation procedures will be conducted by May 1, 2026, for leasing staff and management, with annual refresher training. Responsible Staff: Leasing Assistant/Clerk – Preparation Leasing Manager – Review and verification Controller – Oversight Chief Executive Officer (CEO) – Final accountability Implementation Date: Corrective actions are being implemented immediately upon identification of the finding. Ongoing monitoring will occur monthly.

View Audit 397748

Finding 1205910 (2025-003)

Material Weakness 2025

Midland Area Agency on Aging

NE

Allowable Costs / Cost Principles Cash Management Material Weakness

Views of Responsible Officials and Planned Corrective Actions: The Agency is committed to properly tracking and allocating Federal expenditures. The Agency will create adequate internal control processes to ensure meal counts are correctly accumulated and reported and in accordance with the requirem...

Views of Responsible Officials and Planned Corrective Actions: The Agency is committed to properly tracking and allocating Federal expenditures. The Agency will create adequate internal control processes to ensure meal counts are correctly accumulated and reported and in accordance with the requirements of the Uniform Guidance.

View Audit 397719

Finding 1205903 (2025-005)

Material Weakness 2025

Cairo School District No. 1

IL

Allowable Costs / Cost Principles Cash Management Equipment & Real Property Management

Name of Contact Person: Pamela Rizkallah, Superintendent. Recommendation: We recommend that the District only charge costs that are allowable under the grant agreement. We also recommend that the District contact ISBE to discuss if the District will need to return the funds reimbursed by the Illinoi...

Name of Contact Person: Pamela Rizkallah, Superintendent. Recommendation: We recommend that the District only charge costs that are allowable under the grant agreement. We also recommend that the District contact ISBE to discuss if the District will need to return the funds reimbursed by the Illinois School Board of Education for these unallowable expenditures. Corrective Action: The District will ensure that all costs charged to the Title I grant are allowable per the grant agreement going forward. Proposed Completion Date: Immediately.

View Audit 397705

Finding 1205878 (2025-001)

Material Weakness 2025

San Diego Biomedical Research Institute

CA

Cash Management Subrecipient Monitoring

CORRECTIVE ACTION PLAN San Diego Biomedical Research Institute respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Leaf & Cole, LLP 2810 Camino Del Rio South, Suite 200 San Diego, California 92108 Audit p...

CORRECTIVE ACTION PLAN San Diego Biomedical Research Institute respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Leaf & Cole, LLP 2810 Camino Del Rio South, Suite 200 San Diego, California 92108 Audit period: June 30, 2025 The findings from the June 30, 2025 comments are discussed below. The findings are numbered consistently with the numbers assigned in the Schedule of Findings and Questions Cost (Schedule). Section II of the Schedule does not include findings and is not addressed. Section III - Federal Award Findings and Questioned Costs: Finding 2025-001: Cash Management - Research and Development Cluster Condition Funds were drawn down by the Institute in excess of the three-day period recommended by its funding agency and did not minimize the time elapsing between the transfers of funds from the grantor to the issue of payment by the recipient during the year ended June 30, 2025. Criteria Cash management under 2 CFR 215.22 states that payment methods shall minimize the time elapsing between the transfers of funds from the grantor to the issue of payment by the recipient Cause The Institute's preparation and review procedures over the draw down of funds were insufficient to minimize the time elapsing between the transfers of funds from the grantor to the issue of payments by the Institute. Effect The Institute was not in compliance with the cash management compliance requirements stated in 2 CFR 215.22 during the year and the Institute had an overdrawn balance of 719,817 at June 30, 2025. Recommendation The Institute should improve its procedures over advances of federal funds. Management Response Management acknowledges the finding regarding the timing of federal fund drawdowns and the requirements under 2 CFR 215.22 to minimize the time between receipt of federal funds and the disbursement of those funds for allowable program costs. The Institute recognizes the importance of maintaining compliance with federal cash management requirements and ensuring that drawdowns are aligned as closely as possible with immediate funding needs. Actions Taken Management has enhanced its oversight of federal cash management processes to ensure that drawdowns are closely aligned with actual expenditures and immediate cash needs in accordance with 2 CFR 215.22. Additional review procedures for drawdown requests have been implemented, and regular monitoring of grant expenditure and cash balances has been incorporated into the Institute's ongoing financial management and oversight activities.

View Audit 397630

Finding 1205826 (2025-008)

Material Weakness 2025

Dillard University

LA

Cash Management Subrecipient Monitoring § 200.305

Cash Management The University acknowledges the finding related to missing documentation supporting cash drawdowns for the Higher Education Institutional Aid program. We recognize that federal regulations require all drawdown requests to be supported by underlying expenditures and appropriate suppor...

Cash Management The University acknowledges the finding related to missing documentation supporting cash drawdowns for the Higher Education Institutional Aid program. We recognize that federal regulations require all drawdown requests to be supported by underlying expenditures and appropriate supporting records. Corrective Actions 1. Implementation of Required Documentation Procedures: The University has established a formal process requiring that all drawdown requests be supported by detailed expenditure reports before funds are drawn. Supporting documentation must be uploaded and retained in a shared electronic repository. 2. Enhanced Review and Approval Controls: Drawdown requests must now undergo a two step review process by Grants Management and the Controller’s Office to ensure compliance with cash management requirements prior to submission. 3. Staff Training: Relevant staff is updating training on Uniform Guidance §200.305 requirements and on maintaining complete documentation to support each drawdown. 4. Ongoing Monitoring: Periodic internal reviews will be conducted to confirm that all future drawdowns are documented, properly supported, and compliant with federal cash management standards. The University believes these actions will strengthen internal controls over cash drawdowns and ensure compliance with federal regulations moving forward.

View Audit 397569

Finding 1205817 (2025-005)

Material Weakness 2025

Center for the Advancement of Science in Pace

FL

Cash Management § 200.303 § 200.305

Processes have been developed and implemented to ensure both receipt of funds and return of interest to the grantor is done on a timely and consistent basis.

View Audit 397567

Finding 1205799 (2025-002)

Material Weakness 2025

Western States Air Resources Council

NM

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles § 200.400 § 200.68

2025-002 Corrective Action: We will correct the application of indirect costs and reduce the very next future request for reimbursement by the overcharged indirect costs. We have also changed the circumstances that caused the limitation to be overlooked related to this specific contract.

View Audit 397529

Finding 1205758 (2025-002)

Material Weakness 2025

ILEARN SCHOOLS, INC.

NJ

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties § 200.305 § 200.403 § 200.414

iLearn Schools, Inc. notes that the excess reimbursement of $85,425 was identified, properly recorded as a grant advance liability, and not recognized as revenue or expense in the current year. Going forward, all reimbursement requests will be based on actual allowable direct costs incurred. Managem...

iLearn Schools, Inc. notes that the excess reimbursement of $85,425 was identified, properly recorded as a grant advance liability, and not recognized as revenue or expense in the current year. Going forward, all reimbursement requests will be based on actual allowable direct costs incurred. Management will establish written procedures for indirect cost recovery, implement a formal review and reconciliation process prior to submission, and provide staff training on Uniform Guidance requirements. These corrective actions will be in place for the fiscal year ending June 30, 2026. Responsible Official: Mr. Coban, Chief Financial Officer

View Audit 397494

Finding 1205757 (2025-001)

Material Weakness 2025

Jubilee Senior Homes, Inc.

CA

HUD Housing Programs Procurement, Suspension & Debarment Cash Management

JUBILEE SENIOR HOMES INC 2220 OXFORD STREET BERKELEY, CALIFORNIA 94704 (510) 841-4410 CORRECTIVE ACTION PLAN March 31, 2026 Cognizant or Oversight Agency for Audit: Department of Housing and Urban Development Jubilee Senior Homes, Inc. respectfully submits the following corrective action plan for th...

JUBILEE SENIOR HOMES INC 2220 OXFORD STREET BERKELEY, CALIFORNIA 94704 (510) 841-4410 CORRECTIVE ACTION PLAN March 31, 2026 Cognizant or Oversight Agency for Audit: Department of Housing and Urban Development Jubilee Senior Homes, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Lindquist von Husen & Joyce LLP 301 Howard Street, Suite 850 San Francisco, CA 94105 Audit period: July 1, 2024, to 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. FINDINGS—FINANCIAL STATEMENT AUDIT None noted. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS 2025-001 Compliance over Timely Deposit of Annual Residual Receipts No. 14.157. Program –Section 202 Supportive Housing for Elderly Personal Significant Deficiency Jubilee should reevaluate its policies and procedures to ensure that required residual receipts deposits are made timely each year. Action Taken: This was an isolated incident for fiscal year ending 6/30/24. As soon as the oversight was realized, we took action to remedy it. In addition, we have updated our process to send out residual receipts deposits once we have a draft audit completed versus waiting until after the final audit to ensure deposits are made before the 9/30 deadline. If there are any changes post audit completion, they should be immaterial and would be deposited as soon as we have final numbers. This will ensure timely deposits. Confirmation of deposits are tracked and will be followed up on regularly to ensure we do not miss the residual receipts distributions from surplus cash in the future. If the Department of Housing and Urban Development has questions regarding this plan, please call Zelda Ryan, Corporate Controller, at (510) 841-4410 x304#. Sincerely, Eric Knecht, CFO Resources for Community Development

View Audit 397481

Corrective Action Plans

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