Corrective Action Plans

Finding 1228646 (2026-004)

Material Weakness 2026

IL

Reporting Subrecipient Monitoring Cash Management

Views of responsible o􀆯icials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: PCAA will implement a formal year-end close communication process for vendors and subrecipients. Fiscal year-end reminders will be distributed by email,...

Views of responsible o􀆯icials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: PCAA will implement a formal year-end close communication process for vendors and subrecipients. Fiscal year-end reminders will be distributed by email, with a request that final invoices be submitted before the books are closed. PCAA will also maintain the books open for six weeks after fiscal year-end to help ensure expenditures are recorded in the proper fiscal year. Name(s) of the contact person(s) responsible for corrective action: Alina Birenyte, Controller Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented by August 31, 2026

View Audit 410287

Finding 1228645 (2026-003)

Material Weakness 2026

PREVENT CHILD ABUSE AMERICA

IL

Allowable Costs / Cost Principles Cash Management Significant Deficiency

Views of responsible o􀆯icials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: The Grant and Accounting teams hold monthly in-person meetings to review grant-related expenditures. Going forward, email approval will be requested aft...

Views of responsible o􀆯icials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: The Grant and Accounting teams hold monthly in-person meetings to review grant-related expenditures. Going forward, email approval will be requested after each meeting and before the draw request is submitted to the governmental agency. Name(s) of the contact person(s) responsible for corrective action: Alina Birenyte, Controller Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented by August 31, 2026.

View Audit 410287

Finding 1226445 (2026-001)

Material Weakness 2026

Stedman-Wade Health Services, Inc.

NC

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management

The CFO corrected the Federal Draw schedule to identify the payroll used each pay period for the draw request. The schedule shows the replacement of termed staff and a countdown of available grant dollars per staff. This report balances the Federal Draw schedule every pay period.

View Audit 409062

Finding 1223617 (2026-001)

Material Weakness 2026

Froh Manor Apartments

MI

HUD Housing Programs Special Tests & Provisions Cash Management

Management agrees with the finding and will put processes and controls in place to verify timely deposits in the future. The required deposit of $4,477 was made in July 2025 to the residual receipts account. The corrective response has already been put into place for this fiscal year.

View Audit 407118

Finding 1222655 (2026-001)

Material Weakness 2026

Hickory Estates 084-Ee062-Wahnp

MO

HUD Housing Programs Cash Management

Corrective Action Plan for Current Year Findings 2026-001 Deposit of Surplus Cash into a Residual Receipts Account Corrective Action Plan No later than 90 days past the end of the fiscal year, we will identify surplus cash in the project funds account and deposit into the residual receipts account. ...

Corrective Action Plan for Current Year Findings 2026-001 Deposit of Surplus Cash into a Residual Receipts Account Corrective Action Plan No later than 90 days past the end of the fiscal year, we will identify surplus cash in the project funds account and deposit into the residual receipts account. Person(s) Responsible: Aaron Franklin Timing for Implementation: Immediate

View Audit 406221

Finding 1218249 (2026-001)

Material Weakness 2026

Shawme Heights II ,inc

MA

Cash Management HUD Housing Programs Subrecipient Monitoring

Remaining balance was deposited on April 16, 2026. In the future management will ensure deposits are made timely or obtain HUD appproval permitting delay if there were cash flows issues.

View Audit 404495

Finding 1241626 (2025-002)

Material Weakness 2025

Crosspurpose

CO

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.403 § 200.404 § 200.405

Finding 2025-002 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 206885 Questioned costs: $412,100 The Department-approved Employment First Program Operator Plan incorporated into Contract No....

Finding 2025-002 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 206885 Questioned costs: $412,100 The Department-approved Employment First Program Operator Plan incorporated into Contract No. 26 IHGA 201182 included a Launch licensing materials cost of $2,600 per participant. The plan described the participantbased fee and related services, and the executed contract incorporated the methodology. Related budget documents also contemplated billing at established component rates rather than reimbursement based solely on actual costs incurred. The Organization billed $412,100 under the participant-based licensing methodology. Based on the approved plan, supporting budget schedules, and executed contract, management believed the methodology was approved by the Department, was reasonable and necessary, and complied with program requirements.After the program began, the Organization engaged with a reputable independent firm to perform a transferpricing and fair value study to evaluate and support the methodology and contribute the technology to a separate legal entity. The Colorado Department of Human Services later questioned whether the retained documentation adequately supported the participant-based fee and the allocation of charges to the federal program. The Department had approved invoices and reimbursed these costs before raising concerns during its fiscal management evaluation. Management recorded a liability for the amounts identified by the State pending final resolution. Corrective Action Plan Management has established a separate legal entity to hold the technology associated with these charges. On May 4, 2026, before the fiscal management evaluation, management engaged an accounting firm to benchmark the fee and independently evaluate the participant-based pricing methodology. Management is also working to value the developed technology for contribution to the separate legal entity. Although documentation was retained, management has developed a plan to enhance the documentation supporting the methodology under federal cost principles. The enhanced records will describe the basis for the participant fee, the supporting assumptions and analyses, and the benefit received by the federal program. Anticipated completion date: October 30, 2026

View Audit 415691

Finding 1241623 (2025-004)

Material Weakness 2025

Steelton-Highspire School District

PA

Subrecipient Monitoring Cash Management Reporting

The District agrees with the finding and the business manager has resumed taking on responsibility for submitting quarterly reports in a timely manner. The District maintains a listing of due dates for reports to assist in monitoring when reports are due to external agencies. The business manager an...

The District agrees with the finding and the business manager has resumed taking on responsibility for submitting quarterly reports in a timely manner. The District maintains a listing of due dates for reports to assist in monitoring when reports are due to external agencies. The business manager and staff are developing and implementing procedures to correct past mistakes, establish efficient processes and ensure all transactions are correctly posted to the proper period, fund, function and account.

View Audit 415665

Finding 1241587 (2025-001)

Material Weakness 2025

Corporacion Educativa Ramon Barquin Dba American Military Academy

PR

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management § 200.303

To counter this situation, CERB is in the process of changing the inhouse personnel in charge of the FEMA grants and the COR3 DRS portal. The person assigned will be properly trained in the use of DRS application and will be attending a grant seminar to better acquaint themselves with processes and ...

To counter this situation, CERB is in the process of changing the inhouse personnel in charge of the FEMA grants and the COR3 DRS portal. The person assigned will be properly trained in the use of DRS application and will be attending a grant seminar to better acquaint themselves with processes and compliance under 2 U.S. Code of Federal Regulations Part 200. Another internal control that will be established is the contracting of an outside expert in FEMA funding to scrutinize present files kept at CERB headquarters and complete any lacking documentation so that future audits can be addressed successfully. As to the $72,756 CERB accepts this finding which has been corrected by returning the funds to the FEMA Public Assistance account after year-end. Regarding the $130,620, CERB has retained an outside accounting resource to double check the correctness of accounting classification, as a counterbalance and internal control method.

View Audit 415628

Finding 1241574 (2025-002)

Material Weakness 2025

Citizens for Better Living, Inc.

MI

HUD Housing Programs Procurement, Suspension & Debarment Subrecipient Monitoring

Finding 2025-002: The required residual receipts deposit in the amount of $40,444 per the 2024 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited into a residual receipts fund within ninety (90) days after fiscal year end. Comments on the Finding and Each Recommendati...

Finding 2025-002: The required residual receipts deposit in the amount of $40,444 per the 2024 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited into a residual receipts fund within ninety (90) days after fiscal year end. Comments on the Finding and Each Recommendation: Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within ninety (90) days after the fiscal year end. Action(s) Taken or Planned on the Finding: Management concurs. The 2024 surplus cash computation, and therefore the amount due to residual receipts, was not available until the 2024 audited financial statements were issued on December 18, 2025. No distributions were made from project funds in 2024 or 2025, and the funds remained in the Corporation's operating account and were used for project operations. The Corporation established a residual receipts account in the name of the Corporation and deposited the full $40,444, with $14,487 deposited on September 17, 2026 and the remaining $25,957 will be deposited in 2026. The 2025 computation of surplus cash reflects a deficiency, and no additional deposit is due for 2025. Going forward, the annual computation will be completed with the audit and any required deposit made within ninety days of year-end.

View Audit 415609

Finding 1241518 (2025-001)

Material Weakness 2025

Housing Authority of the City of New Britain

CT

Cash Management HUD Housing Programs § 200.305

The Authority will utilize the reimbursement method and process payment to the vendor before requisitioning funds from ELOCCs.

View Audit 415581

Finding 1241513 (2025-005)

Material Weakness 2025

Karen Organization of Minnesota

MN

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management

Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing No. 93.566 Recommendation: We recommend that the Organization strengthen controls over participant eligibility by implementing procedures to regularly monitor participant eligibility periods, track ORR...

Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing No. 93.566 Recommendation: We recommend that the Organization strengthen controls over participant eligibility by implementing procedures to regularly monitor participant eligibility periods, track ORR eligibility dates, and timely close cases that exceed the maximum allowable service period. In addition, the Organization should verify and document Minnesota residency prior to providing services, retain supporting eligibility documentation in participant files, and perform periodic monitoring to ensure compliance with program eligibility requirements. Management should not rely solely on system-generated notifications to identify participants approaching eligibility expiration. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: KOM will strengthen its participant eligibility procedures by implementing a process to regularly monitor participant eligibility periods and track applicable ORR eligibility dates. Cases that reach or exceed the maximum allowable service period will be identified and closed timely. KOM will also establish procedures to verify and document Minnesota residency before services are provided and to retain appropriate eligibility documentation in participant files. Periodic monitoring will be performed to confirm ongoing compliance with program eligibility requirements, rather than relying solely on system-generated notifications to identify approaching eligibility expiration dates. Name of the contact person responsible for corrective action: Alice Buckner, Executive Director Planned completion date for corrective action plan: December 31, 2026.

View Audit 415577

Finding 1241507 (2025-003)

Material Weakness 2025

Karen Organization of Minnesota

MN

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring

Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing No. 93.566 Recommendation: The Organization should strengthen its internal controls over grant reimbursement requests by ensuring all requests are reviewed and approved by the authorized Executive Dire...

Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing No. 93.566 Recommendation: The Organization should strengthen its internal controls over grant reimbursement requests by ensuring all requests are reviewed and approved by the authorized Executive Director prior to submission to the grantor. Management should maintain documentation evidencing the review and approval and perform periodic monitoring to ensure compliance with established approval and segregation of duties requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Effective July 2026, KOM implemented an enhanced review and approval process for RPO reimbursement invoices. Each invoice is subject to review by two executives and requires two levels of approval. The Program Director and Executive Director are primarily responsible for the review and approval process. When the Executive Director is unavailable, the Finance Director provides the required review and approval. This process is intended to ensure appropriate oversight and documented authorization before reimbursement requests are submitted. Name of the contact person responsible for corrective action: Alice Buckner, Executive Director Planned completion date for corrective action plan: November 30,2026

View Audit 415577

Finding 1241439 (2025-001)

Material Weakness 2025

MESSIAH LUTHERAN CHURCH INC

PA

Cash Management Eligibility Matching / Level of Effort / Earmarking § 200.303

The Church agrees with the finding. Going forward, all reimbursement requests will be reviewed and approved by someone independent of the preparer, before submission.

View Audit 415534

Finding 1241383 (2025-002)

Material Weakness 2025

Afghan Cultural Society of Mn

MN

Cash Management Material Weakness Period of Performance

U.S. Department of Health and Human Services 2025-002 Rehabilitation for Survivors of Torture in Minnesota/Ethnic Community Self- Help Program; Refugee and Entrant Assistance – Assistance Listing No. 93.576 Recommendation: Auditor recommends that organization improve grant tracking to ensure that on...

U.S. Department of Health and Human Services 2025-002 Rehabilitation for Survivors of Torture in Minnesota/Ethnic Community Self- Help Program; Refugee and Entrant Assistance – Assistance Listing No. 93.576 Recommendation: Auditor recommends that organization improve grant tracking to ensure that only costs incurred within the period of performance are included in the reimbursement requests. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Expenditure trackers are being updated for ease of use and will include notes on exact end of contract dates instead of just the month and year. This will take place starting in Q4 2026. Name(s) of the contact person(s) responsible for corrective action: Nasreen Sajady Planned completion date for corrective action plan: 10/13/2026

View Audit 415503

Finding 1241233 (2025-001)

Material Weakness 2025

Mt. Olive Community Outreach Center, INC

GA

Cash Management Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.305

Mt. Olive Community Outreach Center, Inc. Corrective Action Plan Grant Budget Monitoring and Expenditure Control Finding Mt. Olive Community Outreach Center, Inc. (MOCOC) recognizes the need to strengthen its internal fiscal controls to ensure expenditures remain within approved grant budgets. As a ...

Mt. Olive Community Outreach Center, Inc. Corrective Action Plan Grant Budget Monitoring and Expenditure Control Finding Mt. Olive Community Outreach Center, Inc. (MOCOC) recognizes the need to strengthen its internal fiscal controls to ensure expenditures remain within approved grant budgets. As a small nonprofit administering multiple grant awards, the organization is implementing additional monitoring procedures to prevent overspending and ensure compliance with all grant requirements. Root Cause The organization did not have a formal written procedure outlining how grant expenditures would be monitored throughout the grant period. Although expenditures were reviewed on an ongoing basis, the review process was not consistently documented or supported by a standardized budget monitoring procedure. Corrective Action Effective immediately, MOCOC will implement the following procedures for all grant-funded programs: 1. Monthly Budget Monitoring The Program Director and (Accountant?) will review each active grant budget on a monthly basis. A Budget-to-Actual report will be reviewed to compare approved budgets with actual expenditures and remaining balances. 2. Pre-Expenditure Budget Verification Before any grant-funded purchase or financial commitment is made, the Program Director will verify that sufficient funds remain within the appropriate budget category. No expenditure will be approved if adequate funds are not available. 3. Grant Budget Tracking The Program Director/(Accountant) will maintain a budget tracking spreadsheet for each active grant showing: • Approved budget • Expenditures to date • Remaining balance • Percentage of budget utilized This tracking document will be updated regularly and reviewed during the monthly budget meetings. 4. Spending Threshold Monitoring When expenditures reach approximately 85% of the approved budget or any major budget category, the Program Director and (Accountant?) will review the remaining budget and determine whether spending adjustments or a budget revision request, if permitted by the funding agency, is necessary. 5. Financial Oversight The Program Director will review and approve all grant-related expenditures before payment. The Program will process payments, maintain accounting records, and reconcile expenditures to the accounting system, after they have been properly approved and signed off on to process. Monthly financial reports will be provided to management for review. Responsible Staff • Executive Director • Program Director • Program Assistants • Accountant (When Applicable) Implementation Date These procedures become effective immediately upon approval and will be incorporated into the organization's Fiscal Policies and Procedures Manual. Monitoring Compliance with these procedures will be monitored through: • Monthly budget review meetings between the Executive Director, Program Director and (Accountant?) • Documentation of budget reviews and any corrective actions taken. • Periodic review of financial reports by the Board of Directors if applicable. • Annual review of these procedures to determine whether revisions or additional controls are needed. Expected Outcome Implementation of these procedures will strengthen MOCOC's internal controls, improve budget oversight, reduce the risk of overspending, and ensure continued compliance with grant requirements and sound fiscal management practices. These measures will promote accountability while providing reasonable internal controls appropriate for the size and structure of the organization.

View Audit 415318

Finding 1241173 (2025-001)

Material Weakness 2025

Columbia River Mental Health Services

WA

Cash Management Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.305

CRMHS management concurs with the finding. During the fiscal year ended June 30, 2025, CRMHS did not consistently operate internal controls over federal cash management as designed. Specifically, a federal draw was processed in excess of immediate cash needs and was not fully reconciled to supportin...

CRMHS management concurs with the finding. During the fiscal year ended June 30, 2025, CRMHS did not consistently operate internal controls over federal cash management as designed. Specifically, a federal draw was processed in excess of immediate cash needs and was not fully reconciled to supporting allowable expenditures prior to submission. This resulted in federal funds being drawn in advance of program disbursement requirements. Management acknowledges that this practice does not comply with 2 CFR §200.305, which requires non-federal entities to minimize the time between drawdown of federal funds and their disbursement for program purposes. While the funds were ultimately expended on allowable program costs, the timing of the draw created a compliance exception and reflects a material weakness in internal control over compliance. Management takes this matter seriously and has implemented corrective measures to strengthen cash management oversight and reconciliation procedures. Such actions include: CRMHS has completed a full reconciliation of all drawdowns under Assistance Listing 93.696 to supporting allowable expenditures through June 30, 2025. • Any excess cash balances identified were evaluated and adjusted to ensure compliance with federal cash management requirements. • Pre-Draw Reconciliation Requirement—No draw request may be submitted without documented reconciliation to recorded allowable expenditures. • Segregation of Duties and Review—the draw request and documented reconciliation will be reviewed and signed off on by a second qualified member of the accounting team. • Monthly Grant Cash Monitoring—CRMHS will compare cumulative drawdowns to cumulative allowable expenditures to identify and resolve any excess cash position.

View Audit 415251

Finding 1241170 (2025-003)

Material Weakness 2025

Community Health Service, Inc.

MN

Cash Management Internal Control / Segregation of Duties Material Weakness § 200.305

Cash Management Type: Material Weakness in Internal Control Over Compliance Corrective Actions: - Implement reconciliation of each drawdown to actual expenditures. - Require detailed supporting documentation. - Establish supervisory approval process. Responsible Parties: Chief Executive Officer and ...

Cash Management Type: Material Weakness in Internal Control Over Compliance Corrective Actions: - Implement reconciliation of each drawdown to actual expenditures. - Require detailed supporting documentation. - Establish supervisory approval process. Responsible Parties: Chief Executive Officer and Chief Financial Officer

View Audit 415245

Finding 1241110 (2025-044)

Material Weakness 2025

State of Illinois

IL

Reporting Allowable Costs / Cost Principles Cash Management § 200.302 § 200.303

Finding Number: 2025-044 Finding Name: Failure to Adequately Document Payment of Medical Expenditures Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) could not provide sufficient supporting documentation to evidence that certain expenditures claimed under the C...

Finding Number: 2025-044 Finding Name: Failure to Adequately Document Payment of Medical Expenditures Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) could not provide sufficient supporting documentation to evidence that certain expenditures claimed under the Children’s Health Insurance Program (CHIP) and the Medicaid Cluster program were disbursed (paid) during the year ended June 30, 2025. Additionally, the auditors noted that the DHFS has not established internal controls at a sufficient level of precision to ensure evidence supporting amounts claimed under CHIP and the Medicaid Cluster program were paid by the IOC during the fiscal year. Name of Contact Person(s) and Title: Michael Erickson, Deputy Finance Administrator - Illinois Department of Healthcare and Family Services Corrective Action(s): The DHFS will complete the following corrective actions: 1. Review and adjust internal control procedures surrounding the financial reporting process to address timing issues to properly reflect the transactions on the cash-basis Schedule of Expenditures of Federal Awards (SEFA). 2. Explore necessary improvements to the level of detail associated with transactions presented for federal claiming by other state agencies. Proposed Completion Date: September 30, 2027

View Audit 415211

Finding 1241023 (2025-031)

Material Weakness 2025

State of Illinois

IL

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.303 § 200.403

Finding Number: 2025-031 Finding Name: Unallowable Costs Charged to the TANF and CCDF Cluster Programs Finding Condition(s): The Illinois Department of Human Services (IDHS) could not provide documentation to support payments made on behalf of beneficiaries of the Temporary Assistance for Needy Fami...

Finding Number: 2025-031 Finding Name: Unallowable Costs Charged to the TANF and CCDF Cluster Programs Finding Condition(s): The Illinois Department of Human Services (IDHS) could not provide documentation to support payments made on behalf of beneficiaries of the Temporary Assistance for Needy Families (TANF) and the Child Care and Development Fund (CCDF) Cluster programs. The auditors also noted that the IDHS does not have adequate controls in place to ensure billing information from providers is accurate and the IDHS does not obtain source documentation (certified attendance records) for child care billings and did not obtain them for our audit procedures. Name of Contact Person(s): Maureen Bilek, Audit Compliance and Programmatic Monitoring Administrator – Illinois Department of Human Services, Division of Early Childhood Corrective Action(s): The IDHS has started to implement corrective actions to obligate and liquidate CCDF grant funding within the applicable period of performance and to strengthen internal controls related to Child Care Assistance Program (CCAP) payments. These corrective actions include the following: • Develop and implement internal procedures to conduct quarterly reviews of billing certificates for payments entered through the Interactive Voice Response (IVR) system. (Completed as of 04/30/26) • Assess existing deliverables, CCAP policy, and CCDF State Plan responses related to IVR payments and determine and implement any necessary revisions. (Completed as of 06/30/26) • Develop external guidance for providers and Child Care Resource and Referral (CCR&R) agencies outlining IVR payment requirements, documentation standards, record-retention expectations, and the review process. (Completed as of 03/09/26) • Initiate and continue implementation of a communication plan to announce upcoming reviews, including the Service Employees International Union (SEIU), the Illinois Department of Early Childhood (IDEC), the CCR&R agencies, and all providers utilizing the IVR. Additional communications will be issued as the process is refined. (Completed as of 04/09/26) • Commence IVR payment reviews in June 2026 and continue a quarterly basis. (Completed as of 09/30/26) • Establish and maintain a master tracking log of provider reviews by year, subject to management review and oversight. (Completed as of 03/15/26) • Develop a centralized tracking tool identifying each grant’s period of performance, obligation deadline, liquidation deadline, and extension requirements. (Proposed Completion Date: 06/30/27) • Establish written procedures requiring monthly review of grant obligations, expenditures, and remaining grant balances, including documented management review. (Proposed Completion Date: 06/30/27) • Implement a notification and escalation process requiring program and fiscal management to be notified when a grant is within six months of its obligation or liquidation deadline. (Proposed Completion Date: 06/30/27) • Provide training to fiscal and program staff responsible for grant administration on federal period of performance, including obligation and liquidation deadlines, extensions, and new tracking and escalation procedures. (Proposed Completion Date: 09/30/27) Proposed Completion Date: September 30, 2027

View Audit 415211

Finding 1240969 (2025-018)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring Cash Management Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-018 Finding Name: Failure to Perform Cash Draws in Accordance with the Treasury State Agreement Finding Condition(s): The Illinois Department of Commerce and Economics Opportunity (DCEO) did not perform its cash draws in accordance with the funding technique prescribed in the Tr...

Finding Number: 2025-018 Finding Name: Failure to Perform Cash Draws in Accordance with the Treasury State Agreement Finding Condition(s): The Illinois Department of Commerce and Economics Opportunity (DCEO) did not perform its cash draws in accordance with the funding technique prescribed in the Treasury State Agreement (TSA). Additionally, the auditors noted that internal controls have not been established to ensure cash draws are calculated and requested in accordance with Treasury regulations and the funding technique prescribed by the Treasury-State agreement. Name of Contact Person(s): • Lisa Clement, Audit and Resolution Manager – Illinois Department of Commerce and Economic Opportunity • Jared Ebel, Chief Accountability Officer – Illinois Department of Commerce and Economic Opportunity • Phil Keshen, Deputy Director – Illinois Department of Commerce and Economic Opportunity, Office of Fiscal Management Corrective Action(s): The DCEO’s Office of Financial Management requested that the Governor’s Office of Management and Budget (GOMB) change the funding technique for the Low-Income Home Energy Assistance Program within the Treasury-State Agreement to Pre-Issuance. This change eliminates the need to re-certify to the accuracy of the clearance pattern. GOMB approved the change to the Treasury-State Agreement for Fiscal Year 2026. Proposed Completion Date: July 1, 2025 – Complete

View Audit 415211

Finding 1240968 (2025-017)

Material Weakness 2025

State of Illinois

IL

Cash Management Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-017 Finding Name: Failure to Re-certify to the Accuracy of the Clearance Pattern Finding Condition(s): The Illinois Department of Commerce and Economics Opportunity (DCEO) did not properly review or re-certify the accuracy of the clearance pattern specified in the Treasury-State...

Finding Number: 2025-017 Finding Name: Failure to Re-certify to the Accuracy of the Clearance Pattern Finding Condition(s): The Illinois Department of Commerce and Economics Opportunity (DCEO) did not properly review or re-certify the accuracy of the clearance pattern specified in the Treasury-State Agreement related to cash draws for the Low Income Home Energy Assistance Program (LIHEAP). Additionally, the auditors noted that internal controls have not been established to ensure clearance patterns are calculated and recertified in accordance with Treasury regulations. Name of Contact Person(s): • Lisa Clement, Audit and Resolution Manager – Illinois Department of Commerce and Economic Opportunity • Jared Ebel, Chief Accountability Officer – Illinois Department of Commerce and Economic Opportunity • Phil Keshen, Deputy Director – Illinois Department of Commerce and Economic Opportunity, Office of Fiscal Management Corrective Action(s): The DCEO’s Office of Financial Management requested that the Governor’s Office of Management and Budget (GOMB) change the funding technique for the Low-Income Home Energy Assistance Program within the Treasury-State Agreement to Pre-Issuance. This change eliminates the need to re-certify to the accuracy of the clearance pattern. GOMB approved the change to the Treasury-State Agreement for Fiscal Year 2026. Proposed Completion Date: July 1, 2025 – Complete

View Audit 415211

Finding 1240937 (2025-004)

Material Weakness 2025

State of Illinois

IL

Cash Management Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-004 Finding Name: Failure to Calculate Cash Requests in Accordance with the Treasury Regulations Finding Condition(s): The Illinois State Board of Education (ISBE) did not calculate cash requests for the Twenty-First Century Community Learning Centers (21st Century) and Student ...

Finding Number: 2025-004 Finding Name: Failure to Calculate Cash Requests in Accordance with the Treasury Regulations Finding Condition(s): The Illinois State Board of Education (ISBE) did not calculate cash requests for the Twenty-First Century Community Learning Centers (21st Century) and Student Support and Academic Enrichment (SSAE) programs in accordance with the requirements of 31 CFR part 205 (Treasury Regulations). Name of Contact Person(s): Regina Toland, Director of Fiscal Services – Illinois State Board of Education Corrective Action(s): ISBE's accounting system, MIDAS, automatically calculates the amounts to be requested from federal sources based on expenditures. The ISBE will request federal funds based on this calculation to be in compliance with the Cash Management Improvement Act and the Code of Federal Regulations. Proposed Completion Date: July 1, 2026 - Complete

View Audit 415211

Finding 1240803 (2025-017)

Material Weakness 2025

City of Belgrade

MT

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

FINDING 2025-017: Controls Over SRF Reimbursement Requests Response: The City again agrees with the auditor’s recommendation and will include reporting and reimbursement rules and guidelines in the new Grant & Federal Funding policy currently being developed by the Finance Department. We have also c...

FINDING 2025-017: Controls Over SRF Reimbursement Requests Response: The City again agrees with the auditor’s recommendation and will include reporting and reimbursement rules and guidelines in the new Grant & Federal Funding policy currently being developed by the Finance Department. We have also created a central location for all grant documentation to be stored in order to keep all documentation available to everyone involved in grant-related transactions. The new process/policy will also include additional review requirements.

View Audit 415127

Finding 1240790 (2025-001)

Material Weakness 2025

Town of Cohasset

MA

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

Audit Finding Reference: 2025-001 Document Policies and Procedures Over Federal Awards Planned Corrective Action: The Town has received a draft policy addressing requirements related to Federal Awards. The Town will review the policy and work toward presenting it to the Board for consideration and a...

Audit Finding Reference: 2025-001 Document Policies and Procedures Over Federal Awards Planned Corrective Action: The Town has received a draft policy addressing requirements related to Federal Awards. The Town will review the policy and work toward presenting it to the Board for consideration and adoption during FY27. Planned Implementation Date of Corrective Action: Within Fiscal Year 2027. Person Responsible for Corrective Action: Michelle Leary and Bethiny Moseley

View Audit 415167

Corrective Action Plans

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