Corrective Action Plans

Finding 1227303 (2025-002)

Material Weakness 2025

NE

Reporting Cash Management Material Weakness

U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.600 Head Start Cluster Applicable Federal Award Number and Year – 07HP000640-02-00 9/1/2025 – 8/31/2026 Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Complianc...

U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.600 Head Start Cluster Applicable Federal Award Number and Year – 07HP000640-02-00 9/1/2025 – 8/31/2026 Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule in accordance with requirements of the Uniform Guidance. Condition: The Organization’s internal controls over the preparation of the Schedule were not operating effectively. As a result of our audit procedures, misstatements in the Schedule were identified and adjustments to the Schedule were proposed and recorded by management. Corrective Action Plan: Management is in the process of reviewing its accounting processes and procedures over the preparation of the Schedule in order to accurately report federal expenditures incurred during the reporting period. Individual Responsible for Corrective Action: Milton Trabal, Chief Financial Officer Anticipated Completion Date: 12/31/2026

View Audit 409416

Finding 1227225 (2025-002)

Material Weakness 2025

Southeastern Vermont Community Action, Inc.

VT

Cash Management § 200.305

CORRECTIVE ACTION PLAN — Finding 2025-002 Compliance Finding – Cash Management | Low-Income Home Energy Assistance Program (LIHEAP) (ALN 93.568) Entity: Southeastern Vermont Community Action, Inc. (SEVCA) | Pass-Through Entity: State of Vermont Department for Children and Families | Cognizant Federa...

CORRECTIVE ACTION PLAN — Finding 2025-002 Compliance Finding – Cash Management | Low-Income Home Energy Assistance Program (LIHEAP) (ALN 93.568) Entity: Southeastern Vermont Community Action, Inc. (SEVCA) | Pass-Through Entity: State of Vermont Department for Children and Families | Cognizant Federal Agency: U.S. Department of Health and Human Services | CAP Contact: Joshua Davis, Executive Director, JDavis@sevca.org 1. Summary of Finding Finding 2025-002 identified that SEVCA drew the maximum allowable 50% advance under the LIHEAP award at the onset of the grant period without a documented cash flow forecast or disbursement schedule demonstrating that the amount drawn was limited to actual, immediate program needs. Approximately 30 days after receipt, a significant portion of the advance remained unexpended. This is not consistent with 2 CFR 200.305(b), which requires advances to be limited to the minimum amounts needed and timed to minimize the elapsed time between receipt and disbursement of funds. 2. Management’s Response SEVCA concurs with the finding. No questioned costs were identified. Management is implementing the corrective actions below. 3. Corrective Actions 1. Develop and implement a written Cash Management Procedure requiring that each advance drawdown request be supported by a documented cash flow forecast / disbursement schedule covering the period through the next expected draw date for that award, in accordance with 2 CFR 200.305(b) — Finance Director; 9/1/26. 2. Limit advance drawdown amounts to anticipated disbursements through the next scheduled draw date, rather than defaulting to the maximum allowable advance percentage — Finance Director; 9/1/26. 3. Formalize Finance Director review and sign-off of draw requests, and require independent review and sign-off by the Executive Director prior to submission, to explicitly document verification of the supporting forecast and the next expected draw date, and the amount requested — Finance Director / Executive Director; 9/1/26. 4. Use a single recurring draw worksheet per award documenting cash on hand, anticipated disbursements through the next draw date, and the amount requested, while reconciling the prior draw’s actual disbursements against projections and flagging any idle balances — Finance Director; 9/1/26. 5. Train relevant staff on the updated procedure and 2 CFR 200.305 requirements, and retain completed draw worksheets to support future audit testing — Finance Director / Accounting Staff; 9/1/26, retention ongoing. 4. Anticipated Completion Date 9/1/26. 5. Monitoring The Finance Director will review completed draw worksheets as part of each draw cycle; the Executive Director will independently review and sign off on each draw worksheet prior to submission, and will assess quarterly whether advances are being appropriately sized and timely utilized across federal awards. Draw worksheets, supporting forecasts, and sign-offs will be retained to support future audit testing.

View Audit 409369

Finding 1227186 (2025-002)

Material Weakness 2025

Lime House Senior Housing, Inc.

CA

Subrecipient Monitoring Cash Management HUD Housing Programs

Name of auditee: Lime House Senior Housing, Inc. HUD auditee identification number: 122-EE136-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Ana Ponce Position: President Telephone number: 323-231-1104 Current ...

Name of auditee: Lime House Senior Housing, Inc. HUD auditee identification number: 122-EE136-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Ana Ponce Position: President Telephone number: 323-231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2025-002: The Corporation paid entity costs of $7,680 from operating cash. Comments on the Finding and Each Recommendation: The Sponsor should reimburse the Corporation $7,680 or management should request HUD approval for funds to be reimbursed from the reserve for replacement. Action(s) taken or planned on the finding: Management requested reimbursement from the reserve for replacement. HUD approval was received on February 25, 2026.

View Audit 409351

Finding 1227159 (2025-001)

Material Weakness 2025

Cliff View Village Ii, Inc., 112ee040

TX

HUD Housing Programs Cash Management

CORRECTIVE ACTION PLAN Name and Number of the Project: Cliff View Village II, Inc. No. 112-EE040 Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2025 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regar...

CORRECTIVE ACTION PLAN Name and Number of the Project: Cliff View Village II, Inc. No. 112-EE040 Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2025 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING 1: Section 202 Capital Advance, CFDA 14:157 CORRECTIVE ACTION COMPLETED: During March 2026 the Company deposited the delinquent payment of $120 into the residual receipts account for excess rent. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Ms. Becca Riebesell, Vice President, Asset Living.

View Audit 409332

Finding 1227156 (2025-003)

Material Weakness 2025

Edison Arms Housing Development Fund Co., Inc.

NY

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Management concurs with the findings. Management is in the process of implementing formal procedures to strengthen oversight of HUD regulatory requirements, including the preparation, review, and timely execution of surplus cash calculations and related residual receipts deposits. These procedures w...

Management concurs with the findings. Management is in the process of implementing formal procedures to strengthen oversight of HUD regulatory requirements, including the preparation, review, and timely execution of surplus cash calculations and related residual receipts deposits. These procedures will include clearly assigning responsibility, incorporating the requirement into a year‑end compliance checklist, and documenting management review. Name of Responsible Person: Peyton Vang, Director of Finance Name of Contact: John Reilly Anticipated Completion Date: August 2026

View Audit 409323

Finding 1227154 (2025-002)

Material Weakness 2025

Edison Arms Housing Development Fund Co., Inc.

NY

Cash Management HUD Housing Programs Significant Deficiency

Response: Management concurs with the findings. Although the Organization does not currently use an interestbearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligi...

Response: Management concurs with the findings. Although the Organization does not currently use an interestbearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligible. Management is in the process of evaluating this recommendation to determine the appropriate course of action. Name of Responsible Person: Peyton Vang, Director of Finance Name of Contact: John Reilly Anticipated Completion Date: September 2026

View Audit 409323

Finding 1227152 (2025-001)

Material Weakness 2025

Senior Citizens Housing Development Corporation of Mt. Lebanon

FL

Cash Management HUD Housing Programs Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Mt. Lebanon, Inc., respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive,...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Mt. Lebanon, Inc., respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: January 1, 2025 through December 31, 2025 The finding from the December 31, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures to monitor the expiration of all contracts to ensure timely preparation and approval. Additionally, the Project should obtain reimbursement for any amounts paid subsequent to the expiration of form HUD-9839-B. Action Taken: Management is in the process of renewing all management certifications and will provide the accountant extra training to monitor and not charge fees for expired certifications. If the Oversight Agency for Audit has questions regarding the plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO

View Audit 409319

Finding 1227089 (2025-002)

Material Weakness 2025

Le Mars Community School District

IA

School Nutrition Programs Cash Management Eligibility

Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance: Meal Count Reporting and Reconciliation U.S Department of Agriculture Child Nutrition Cluster Passed through State of lowa Department of Education Federal Assistance Listing Number: 10.555, 10.559, 10.553 Feder...

Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance: Meal Count Reporting and Reconciliation U.S Department of Agriculture Child Nutrition Cluster Passed through State of lowa Department of Education Federal Assistance Listing Number: 10.555, 10.559, 10.553 Federal Award Year: 2025Criteria: Districts are required are required to submit accurate claims for reimbursement and maintain records supporting the number of meals claimed for reimbursement for the National School Lunch Program. Condition: During audit procedures over the School Nutrition Cluster, we identified multiple instances in the National School Lunch Program in which the number of claims submitted was incorrect. Cause: The District did not have an effective review and reconciliation control in place to compare meal-count support to the claim summary reports before reimbursement claims were submitted. In addition, meal-count and eligibility reports were not consistently generated and retained at the time the claims were prepared. As a result, subsequent changes in student eligibility status may have affected the reports available to support the meal counts claimed during the applicable reporting periods. Effect: Meal counts reported for reimbursement were not fully supported by contemporaneous records, resulting in noncompliance with reporting and recordkeeping requirements. Without an effective review and reconciliation control, errors in meal counts or claim summary reports may not be identified before reimbursement claims are submitted, increasing the risk that federal reimbursement claims could be inaccurate. Questioned Costs: Known questioned costs identified were below the reporting threshold and are not reported in this finding. Recommendation: We recommend that the District implement a documented monthly review and reconciliation process before reimbursement claims are submitted. The reconciliation should compare meal-count and eligibility support to the claim summary reports, identify and explain any differences, retain support for adjustments, and include evidence of review and approval by an individual independent of claim preparation. We also recommend that management generate and retain meal-count and eligibility report for each applicable reporting period at the time claims are prepared to ensure support reflects student eligibility status as of the applicable claim period. Management Response: Management acknowledges the finding and the District will generate and retain monthly meal-count and eligibility reports at the time reimbursement claims are prepared. The District will also implement a documented review and reconciliation process for National School Lunch Program reimbursement claims.

View Audit 409272

Finding 1227078 (2025-002)

Material Weakness 2025

CITY OF MATTHEWS

MO

Procurement, Suspension & Debarment Cash Management

Name of Contact Person: April Spraggs, City Clerk. Recommendation: It is recommended that the City develop written policies and procedures related to cash management, cost allowability, procurement, and conflict of interest provisions for federal funds it receives. Corrective Action: The City will d...

Name of Contact Person: April Spraggs, City Clerk. Recommendation: It is recommended that the City develop written policies and procedures related to cash management, cost allowability, procurement, and conflict of interest provisions for federal funds it receives. Corrective Action: The City will develop and adopt the required written policies and procedures. Proposed Completion Date: Immediately.

View Audit 409265

Finding 1227066 (2025-001)

Material Weakness 2025

County of Franklin, Pennsylvania

PA

Special Tests & Provisions Student Financial Aid Allowable Costs / Cost Principles

The County has implemented procedures to ensure all future foster care maintenance for which reimbursement is sought is allowable.

View Audit 409256

Finding 1227056 (2025-005)

Material Weakness 2025

County of Columbus

NC

Reporting Cash Management

2025-005 Significant Deficiency over Activities Allowed and Unallowed and Allowable Costs/Cost Principle (Repeat Finding) Information on the federal program: Temporary Assistance Needy Families Cluster (TANF), Assistance Listing Number 93.558, U.S. Department of Health and Human Services, passed thr...

2025-005 Significant Deficiency over Activities Allowed and Unallowed and Allowable Costs/Cost Principle (Repeat Finding) Information on the federal program: Temporary Assistance Needy Families Cluster (TANF), Assistance Listing Number 93.558, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Medical Assistance. Criteria: Per the NCDHHS policy manual, salaries, wages, and fringe benefits of Department of Social Service employees hired under the state merit system are allowable. Salaries shall be allocated to programs by time distribution methods and supported by payroll and attendance records for individuals. Name of Contact Person: Dwella Hall, Social Services Director Corrective Action Plan: The County’s Department of Social Services is committed to strengthening internal controls to ensure the accurate reporting of time and program coding. The agency has implemented enhanced review protocols requiring supervisors to verify that weekly timesheets accurately reflect the time recorded on employee’s daily activity sheets prior to approval. In addition, the agency is reinforcing staff training on proper time distribution and coding requirement, increasing supervisory oversight, and establishing standardized review procedures to promote consistency and compliance. These measures are designed to improved documentation accuracy, strengthen accountability, and ensure that program reimbursements are supported by complete and accurate records. Proposed Completion Date: June 30, 2027

View Audit 409231

Finding 1227043 (2025-003)

Material Weakness 2025

University of Providence

MT

Student Financial Aid Cash Management

Audit Finding #2025-003: U.S. Department of Education Student Financial Aid Cluster: Cash Management Contact Person Responsible: Kelli Englehardt – Lead Darci May – Support Corrective Actions Planned: 1. Reconcile Jenzabar Financial Aid to General Ledger o Create reports from Jenzabar Financial Aid ...

Audit Finding #2025-003: U.S. Department of Education Student Financial Aid Cluster: Cash Management Contact Person Responsible: Kelli Englehardt – Lead Darci May – Support Corrective Actions Planned: 1. Reconcile Jenzabar Financial Aid to General Ledger o Create reports from Jenzabar Financial Aid to compare to the General Ledger on a monthly basis. Also completed in January, May and September when census date occurs. o Steps will be taken to research any discrepancies between the reports and correct them to calculate the appropriate draw amount. 2. Review of Reconciliation. o Financial Aid will review and approval prior to actual draw down of funds. o Anticipated Completion Date: March 31st, 2026, and then ongoing. Commitment to Compliance: The University will leverage all available tools to prevent timing-related errors and ensure accurate draw downs in future years.

View Audit 409186

Finding 1226336 (2025-001)

Material Weakness 2025

Cass County Electric Cooperative

ND

Questioned Costs Allowable Costs / Cost Principles Cash Management

Finding 2025-001 Department of Homeland Security and Emergency Management Federal Financial Assistance Listing 97.036 Disaster Grant Public Assistance Allowable Costs/Activities Allowed or Unallowed Material Weakness in Internal Control over Compliance Finding Summary: In the testing of allowable co...

Finding 2025-001 Department of Homeland Security and Emergency Management Federal Financial Assistance Listing 97.036 Disaster Grant Public Assistance Allowable Costs/Activities Allowed or Unallowed Material Weakness in Internal Control over Compliance Finding Summary: In the testing of allowable costs and activities, there were instances where material inventory expenses were submitted for federal reimbursement at a cost per unit that did not agree to the replacement cost. Responsible Individuals: Troy Knutson, Andy Weiss, and Ann Watson Corrective Action Plan: The Cooperative will perform a thorough review and reconciliation of supporting documentation for expenditures, including material transactions, before amounts are claimed for reimbursement. Anticipated Completion Date: December 31, 2026

View Audit 408974

Finding 1226313 (2025-004)

Material Weakness 2025

Sangamon County, Illinois

IL

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

County department personnel changes have been implemented which address this deficiency. Additional training from the Auditor’s office and state grantors has occurred and will continue for staff in departments that receive federal and state awards.

View Audit 408963

Finding 1226259 (2025-001)

Material Weakness 2025

David Raines Community Health Center, Inc.

LA

Cash Management § 200.305

June29,2026 Cognizant or Oversight Agency for Audit David Raines Community Health Center, lnc. respectfully submits the following corrective action plan for the year ended December 3I,2026. Name and address of independent public accounting firm AAFCPAS, lnc. 50 Washington Street Westborough, MA 0158...

June29,2026 Cognizant or Oversight Agency for Audit David Raines Community Health Center, lnc. respectfully submits the following corrective action plan for the year ended December 3I,2026. Name and address of independent public accounting firm AAFCPAS, lnc. 50 Washington Street Westborough, MA 01581 Audit period: January L,2025 - December 3L,2025 The findings from June 29,2026, 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 FINDINGS NONE FINDINGS-FEDERAL AWARD PROGRAMS AUDITS SIGNIFICANT DEFICIENCY DEPARTMENT OF HEALTH AND HUMAN SERVICES 2025-001 Federal Progrom Identification: Health Center Program Cluster: ALN 93.224/93.527 Health Center Program and Grants for New and Expanded Services under the Health Center Program Recommendation: Management should establish and implement procedures to ensure Federal drawdowns are based on actual, allowable expenditures or immediate cash needs in accordance with 2 CFR 5200'305' Draw requests should be reviewed and approved to verify that amounts requested do not exceed current allowable expenditures or immediate cash requirements. Action Taken: Management concurs with the finding(s). During the period under audit, the organization inadvertently did a duplicative Federal drawdown which was an-administrative oversight. To address this deficiency and prevent future occurrences, management has implemented the following corrective actions: Duplicate Prevention Controls: Management has instituted a centralized drawdown tracking log to cross-reference and reconcile historical requests against immediate cash needs, eliminating the risk of administrative duplication. Management expects to have the above completed by Fully lmplemented (as of April 2026) lf the Department of Health and Human Services has questions regarding this plan, please call Angela Chatman at 318-440-L9L8. Sincerely yours, Angela Chatman Chief Financial Officer

View Audit 408917

Finding 1226207 (2025-004)

Material Weakness 2025

Baden Street Settlement of Rochester, Inc.

NY

Eligibility Cash Management § 200.512

Views of Responsible Officials and Planned Corrective Actions: Current staff and new staff will be trained on the importance of keeping accurate records. A checklist will be developed for quarterly internal audits to cross-verify names between applications and attendance records, plus other applicab...

Views of Responsible Officials and Planned Corrective Actions: Current staff and new staff will be trained on the importance of keeping accurate records. A checklist will be developed for quarterly internal audits to cross-verify names between applications and attendance records, plus other applicable records. If discrepancies are identified in the internal audits, they will be corrected promptly.

View Audit 408854

Finding 1226109 (2025-001)

Material Weakness 2025

Center for Mental Health

MT

Cash Management

Implemented in November 2025. The Controller prepares the monthly draw, and the CFO reviews, approves, and submits it. The approval email is retained with the payment submission documentation. Responsibility for maintaining this process rests with the Controller and CFO.

View Audit 408781

Finding 1226095 (2025-002)

Material Weakness 2025

Oconto County, Wisconsin

WI

Questioned Costs Cash Management Material Weakness

2025-002 Reporting The county implemented procedures to complete review of claims and reconciliations. Planned completion date for corrective action: December 31, 2025

View Audit 408751

Finding 1226085 (2025-026)

Material Weakness 2025

State of California

CA

Internal Control / Segregation of Duties Special Tests & Provisions Questioned Costs § 200.303

Special Tests and Provisions California Governor’s Office of Emergency Services On December 10, 2025, Cal OES implemented communication protocol improvements by reemphasizing correct threshold applicability prior to payment during team meetings. In addition, by August 31, 2026, Cal OES will revise i...

Special Tests and Provisions California Governor’s Office of Emergency Services On December 10, 2025, Cal OES implemented communication protocol improvements by reemphasizing correct threshold applicability prior to payment during team meetings. In addition, by August 31, 2026, Cal OES will revise its Project Threshold standard operating procedure to include a review control that verifies the applicability of project thresholds, specifically the Large Project threshold, based on the appropriate timing criteria. Cal OES will also provide training to all grants processing and support staff on the revised procedure, including how to correctly identify and enter Large Project Thresholds, verify disaster data against approved sources, and apply the appropriate thresholds for specific declaration dates. Refresher training will be provided as needed thereafter. Furthermore, guidance on Large Project Thresholds will be incorporated into the onboarding process for all new staff. Estimated Implementation Date: August 2026 Contact: - Heidi Palchik, Chief, Recovery Financial Administration Branch, lnteragency Recovery Coordination Section

View Audit 408731

Finding 1226080 (2025-022)

Material Weakness 2025

State of California

CA

Subrecipient Monitoring Questioned Costs Allowable Costs / Cost Principles § 200.303

Activities Allowed and Unallowed California Department of Health Care Services DHCS reinstated county performance standards effective June 1, 2024, through Medi-Cal Eligibility Division Letter (MEDIL 24-12) and issued All County Welfare Directors Letter (ACWDL) 24-17 on November 25, 2024. ACWDL noti...

Activities Allowed and Unallowed California Department of Health Care Services DHCS reinstated county performance standards effective June 1, 2024, through Medi-Cal Eligibility Division Letter (MEDIL 24-12) and issued All County Welfare Directors Letter (ACWDL) 24-17 on November 25, 2024. ACWDL notified counties DHCS would leverage data to monitor application processing times. The data will be used to select counties for focused reviews targeting application processing times and procedures to ensure counties are performing eligibility determinations timely and accurately. DHCS has implemented multiple monitoring activities to address the recommendation and strengthen oversight of county processing of Medi-Cal applications. In May 2024, DHCS issued Medi-Cal Eligibility Division Letter (MEDIL) 24-12, ending the temporary hold harmless provisions and resumed standard county performance accountability. Subsequently, DHCS issued ACWDL 24-17, which established the Department's transition to using system-generated eligibility data, rather than county self-certification, to monitor application timeliness. Under this approach, DHCS evaluates county performance using statewide eligibility data, publishes application timeliness performance through statewide dashboards, and uses the data to identify counties for focused reviews. Focused reviews evaluate both the timeliness and accuracy of county eligibility determinations. Counties that do not meet established performance expectations are subject to corrective actions consistent with the Welfare and Institutions Code (WIC) section 14154 performance monitoring framework, including the application of statutory performance corrective action plans (CAPS), and financial penalties where applicable. Collectively, these actions establish an ongoing oversight process that enables DHCS to monitor county compliance with Medi-Cal application timeliness requirements, identify performance issues, require counties to implement corrective actions to address any deficiencies identified through focused reviews, and promote continued improvement in the timely and accurate processing of Medi-Cal applications. In 2025, DHCS issued MEDIL I 25-19, Reinstatement of the Aid Code Clean-Up Effort, which reinstated the Department's statewide process for identifying beneficiaries assigned to obsolete pre-Affordable Care Act (ACA) aid codes, transitional aid codes, or other records that may require reevaluation of eligibility. As part of this effort, DHCS provides counties with standardized reports on a bi-monthly basis to assist in identifying records that require review and action. Counties are required to review records, and either transition beneficiaries to the appropriate Medi-Cal aid code or discontinue eligibility, as applicable. Through the reinstated Aid Code Clean-Up process, DHCS performs ongoing statewide monitoring of aid code usage, identifies obsolete or inappropriate aid codes, and requires counties to take the appropriate action to ensure these beneficiaries are enrolled under the correct Medi-Cal aid category. Estimated Implementation Date: Fully Implemented Contact - Sarah Crow, Medi-Cal Eligibility Division, Division Chief - Harold Higgins, Medi-Cal Eligibility Division, Branch Chief - Amy Halim, Medi-Cal Eligibility Division, Section Chief

View Audit 408731

Finding 1226008 (2025-004)

Material Weakness 2025

Washington County Ambulance District

MO

Cash Management Questioned Costs § 200.305

Washington County Ambulance District agrees with the reported finding. The underlying cause was a clerical error that was determined after reimbursement had been requested. Upon identifying the issue, additional acceptable expenses were substituted for this clerical error. Additional review will be ...

Washington County Ambulance District agrees with the reported finding. The underlying cause was a clerical error that was determined after reimbursement had been requested. Upon identifying the issue, additional acceptable expenses were substituted for this clerical error. Additional review will be completed on each required submission. This will be overseen by Amber Coleman, Chief Administrative Officer, with a target date of completion of December 31, 2026.

View Audit 408687

Finding 1225967 (2025-001)

Material Weakness 2025

Okemah Community Housing Authority, Inc.

OK

HUD Housing Programs Cash Management Reporting

FINDING No. 2025-001: Recommendation: The Project’s management should redeposit the funds into the Residual Receitps bank account as soon as possible, to bring the account to the correct balance. Action Taken: The Project’s management will redeposit the funds into the replacement reserve account in ...

FINDING No. 2025-001: Recommendation: The Project’s management should redeposit the funds into the Residual Receitps bank account as soon as possible, to bring the account to the correct balance. Action Taken: The Project’s management will redeposit the funds into the replacement reserve account in 2026.

View Audit 408598

Finding 1225861 (2025-005)

Material Weakness 2025

Housing Authority of the City of Durham

NC

Cash Management HUD Housing Programs Internal Control / Segregation of Duties § 200.305

Finding 2025-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public Housing Capital Fund Program Federal Assistance Listing Numbers: 14.872 Noncompliance - C. Cash Management Non Compliance Material to the Financial Statements: No Significant deficiency i...

Finding 2025-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public Housing Capital Fund Program Federal Assistance Listing Numbers: 14.872 Noncompliance - C. Cash Management Non Compliance Material to the Financial Statements: No Significant deficiency in Internal Control over Compliance for Cash Management Criteria: In accordance with 2 CFR 200.305, payment methods for federal awards must minimize the time elapsing between the transfer of federal funds and the disbursement of those funds by the recipient. Federal funds drawn under the Public Housing Capital Fund Program should be limited to amounts needed to meet the Authority’s immediate cash requirements for allowable program expenditures. Accordingly, the Authority should implement procedures to ensure grant funds are not drawn in advance of actual or imminent eligible expenditures. Condition: The Authority drew down federal funds in advance of immediate cash needs for allowable program expenditures. As of year end, a portion of the funds drawn remained unexpended and was reported as unearned revenue in the financial statements. This indicates that federal funds were received prior to the incurrence of eligible expenditures. Context: During review of the financial statements, the Authority was noted to have unexpended federal funds on hand at year end that had been drawn prior to the disbursement of allowable program costs. Specifically, amounts recorded as unearned revenue represented federal funds received in advance of immediate cash needs. This condition was identified through review of drawdown activity, general ledger balances, and year end financial reporting records. Known Questioned Costs: $134,883. Cause: The Authority did not have adequate internal controls in place to monitor the timing of grant drawdowns in relation to actual program cash needs and allowable expenditures. As a result, federal funds were requested and received prior to the incurrence of eligible costs under the Public Housing Capital Fund Program. Effect: The Authority was not in compliance with federal cash management requirements governing the timing of federal fund drawdowns. As a result, federal funds were held in advance of immediate cash needs, increasing the risk of improper cash management and noncompliance with Uniform Guidance and HUD requirements. Recommendation: We recommend the Authority strengthen its internal controls over cash management to ensure federal funds are drawn only for immediate cash needs related to allowable program expenditures. Management should implement monitoring and review controls over grant drawdown activity, including periodic reconciliation of drawdowns to incurred expenditures, to ensure compliance with 2 CFR 200.305 and HUD requirements. Authority's Response: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public Housing Capital Fund Program to ensure that established internal control policies are being followed on a timely basis. Ralph Staley, CFO is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by December 31, 2026.

View Audit 408551

Finding 1225620 (2025-001)

Material Weakness 2025

St. Mark's Terrace Dundee Housing Development Fund Corporation

NY

HUD Housing Programs Special Tests & Provisions Cash Management

Name of auditee: St. Mark’s Terrace Dundee Housing Development Fund Corporation TIN: 014-EE011 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: December 31, 2025 CAP prepared by: Jaimi Shoemaker Executive Director Current Finding on the Schedule of Findings and Questioned Costs an...

Name of auditee: St. Mark’s Terrace Dundee Housing Development Fund Corporation TIN: 014-EE011 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: December 31, 2025 CAP prepared by: Jaimi Shoemaker Executive Director Current Finding on the Schedule of Findings and Questioned Costs and Recommendations (1) Finding 2025-001 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management deposited the delinquent amount of $2,053 to the residual receipts account on May 13, 2026.

View Audit 408515

Finding 1225549 (2025-002)

Material Weakness 2025

Bang on A Can

NY

Allowable Costs / Cost Principles Cash Management Period of Performance § 200.300 § 200.400

Bang on a Can, Inc. will adopt written policies, procedures and standards of conduct as required by 2 CFR 200, Subparts D and E.

View Audit 408442

Corrective Action Plans

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