Corrective Action Plans

Finding 1229683 (2025-005)

Material Weakness 2025

Human Services of Faribault and Martin Counties

MN

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

ALLOWABLE ACTIVITIES Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Grants to States for Medicaid (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2505MN5MAP and 2505MN5ADM, 2025 Pass-Through Agency: Minnesota Dep...

ALLOWABLE ACTIVITIES Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Grants to States for Medicaid (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2505MN5MAP and 2505MN5ADM, 2025 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2505MN5MAP and 2505MN5ADM Compliance Requirement Affected: Allowable Costs/Allowable Activities Award Period: Year-Ended December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: It is recommended the Agency implement control procedures to ensure Income Maintenance Random Moment Study (IMRMS) and Social Services Time Study (SSTS) listings are accurate. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Agency will review procedures and implement changes as needed to ensure going forward that the IMRMS and SSTS listings are accurate. Name of the contact person responsible for corrective action plan: Chera Sevcik, Human Services Executive Director Planned completion date for corrective action plan: December 31, 2026

View Audit 410882

Finding 1229583 (2025-001)

Material Weakness 2025

Banner Health

AZ

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Subrecipient Monitoring

Internal control deficiency and noncompliance over procurement. Banner has a policy for the procurement of federally funded goods and services that fully complies with the Uniform Guidance standards, prescribed by the Office of Management and Budget, for managing federal awards. This policy was not ...

Internal control deficiency and noncompliance over procurement. Banner has a policy for the procurement of federally funded goods and services that fully complies with the Uniform Guidance standards, prescribed by the Office of Management and Budget, for managing federal awards. This policy was not followed when evaluating and selecting the general contractor for a Wyoming Medical Center construction project that was being partially funded (~25%) with federal funds. Specifically, proposals were not obtained through public advertising. The costs charged to the program were for allowable activities; however, the procurement was not conducted in accordance with federal procurement requirements. To ensure all protocols and controls are followed in compliance with Uniform Guidance standards, Banner will implement a process to notify all appropriate parties when federal funds are received or granted and provide education to key constituents on Uniform Guidance standards. Additionally, formal documentation supporting the rationale for selecting general contractors will be enhanced. Since this project is ongoing into 2026, this will be a duplicate finding on the 2026 Uniform Guidance audit. Contact: Elizabeth Montemayor, Chief Financial Officer – Banner Research Expected completion date: December 31, 2026

View Audit 410866

Finding 1229571 (2025-006)

Material Weakness 2025

Family Health Centers, Inc.

SC

Cash Management Material Weakness

In Finding 2025-006, a condition was noted that during the year, the Organization failed to reconcile expenditures prior to drawing federal grant funds. In response to Finding 2025-006, Management recognizes the importance of the requirements to draw federal grant funds only after making qualifying ...

In Finding 2025-006, a condition was noted that during the year, the Organization failed to reconcile expenditures prior to drawing federal grant funds. In response to Finding 2025-006, Management recognizes the importance of the requirements to draw federal grant funds only after making qualifying expenditures. Additionally the policy has been reviewed and FHC has implemented an approval process for grant draw which include: • Ongoing reconciliation spreadsheets are monitored and balanced to Payment Management System monthly. • Draw request is prepared by Interim Chief Financial Officer and approved by the Chief Executive Officer before the draw is implemented. The CEO verifies documentation for the draw prior to approval. • Documentation is maintained that supports the draw and all expenditures.

View Audit 410860

Finding 1229434 (2025-003)

Material Weakness 2025

Community Partnership of Southeast Missouri, Inc.

MO

Cash Management

Finding Type: Noncompliance. Contact Person: Mr. Ryan Essex, Executive Director, (573) 651-3747. Recommendation: The Organization should follow their established internal control procedures to identify and track interest earned on federal program funds, determine the amount required to be remitted i...

Finding Type: Noncompliance. Contact Person: Mr. Ryan Essex, Executive Director, (573) 651-3747. Recommendation: The Organization should follow their established internal control procedures to identify and track interest earned on federal program funds, determine the amount required to be remitted in accordance with applicable federal regulations and award terms, and remit such amounts timely to the appropriate federal agency or pass-through agency. Corrective Action: The Organization has implemented procedures to request funds on a reimbursement basis. This should minimize federal funds earning interest. We will work to ensure that our established procedures to identify and track interest earned on federal program funds are followed and remit the funds accordingly, if necessary. Proposed Completion Date: Immediately.

View Audit 410833

Finding 1229429 (2025-001)

Material Weakness 2025

OHR HATORAH MONSEY

NY

Cash Management School Nutrition Programs

Managementconcurswiththefindingandwillimplementadailypoint-of-servicemealcountlogforeachmealservice,reconciledtoclaimsbeforesubmissionfor reimbursement. A designated staff member will maintain and retain these records for at least three years.

View Audit 410825

Finding 1229408 (2025-004)

Material Weakness 2025

Catholic Community Services of Western Washington

WA

Cash Management Internal Control / Segregation of Duties § 200.303

Type of Finding: Significant deficiency in compliance and internal control over compliance over invoice requests for reimbursement. View of Responsible Officials: Management accepts this finding. Review and approval of reimbursement requests is a significant internal control to ensure the agency is ...

Type of Finding: Significant deficiency in compliance and internal control over compliance over invoice requests for reimbursement. View of Responsible Officials: Management accepts this finding. Review and approval of reimbursement requests is a significant internal control to ensure the agency is requesting appropriate reimbursement from our funders. Corrective Action: Management is now requiring all invoice requests to have a cover sheet that will show proof of review. This process will be implemented across all divisions.

View Audit 410806

Finding 1229310 (2025-006)

Material Weakness 2025

Independent School District No. 197

MN

Internal Control / Segregation of Duties Cash Management Eligibility

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-006 Internal Control Over Compliance With Allowable Activities Requirements Finding S...

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-006 Internal Control Over Compliance With Allowable Activities Requirements Finding Summary Criteria – 7 CFR § 210.8 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program allowable activities, including meal count requirements applicable to child nutrition cluster federal programs. Condition – The District did not have sufficient controls in place within its child nutrition cluster to assure that it was accurately reporting meals counts for federal reimbursement, specifically pre-K students at non-public schools and summer meals served at apartment building sites. Corrective Action Plan Actions Planned – The District will review its policies and procedures relating to meal counts for its federal programs and will ensure that accurate meal counts are documented and submitted for federal reimbursement. Official Responsible – Brian Schultz, the District’s Finance Director. Planned Completion Date – December 31, 2026. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – Brian Schultz, the District’s Finance Director, will review and update the District’s policies and procedures relating to eligible meal tracking and reimbursement submission for its child nutrition cluster federal program to ensure compliance with the Uniform Guidance in the future.

View Audit 410783

Finding 1229270 (2025-003)

Material Weakness 2025

Project Support Housing II

CO

HUD Housing Programs Subrecipient Monitoring Cash Management

Management has corrected this required deposit (on 4/21/2026). Management has assigned responsibility to a designated individual for monitoring residual receipts requirements and deadlines and banking restrictions. Required deposits to the Residual Account will be addressed and made whole within the...

Management has corrected this required deposit (on 4/21/2026). Management has assigned responsibility to a designated individual for monitoring residual receipts requirements and deadlines and banking restrictions. Required deposits to the Residual Account will be addressed and made whole within the full picture of the need to stabilize the project’s financial issues. Provide staff training on HUD regulatory requirements related to restricted accounts.

View Audit 410749

Finding 1229269 (2025-002)

Material Weakness 2025

Project Support Housing II

CO

HUD Housing Programs Internal Control / Segregation of Duties Cash Management

Management concurs with the auditor’s recommendations. The Organization experienced an extreme legal issue with one tenant that drained the checking account above the usual expenses in 2024 and 2025 plus lowered the revenue for the unit until the Organization could successfully evict the tenant from...

Management concurs with the auditor’s recommendations. The Organization experienced an extreme legal issue with one tenant that drained the checking account above the usual expenses in 2024 and 2025 plus lowered the revenue for the unit until the Organization could successfully evict the tenant from the property. This was an unusually aggressive and unethical tenant that used the system to inflict continuous financial hardships on the Organization. To remedy this situation, management noted there are no pending legal issues at this time or outstanding attorney charges and will: Submit proper documentation to HUD to request retroactive approval of transfer with HUD Funds Authorization. Management will be in contact with HUD on how to resolve the unauthorized transfer covering the extreme legal issue. This action will be addressed within the full picture of the need to stabilize the project’s physical and financial issues to ensure that the organization continues to function effectively. Implement internal controls to ensure that all future withdrawals from restricted account receive required HUD authorization prior to disbursement and banking restrictions. Provide staff training on HUD regulatory requirements related to restricted accounts.

View Audit 410749

Finding 1229267 (2025-001)

Material Weakness 2025

Housing Authority of the City of Athens, Alabama

AL

Cash Management HUD Housing Programs Material Weakness

Corrective Action Plan: The Housing Authority concurs with the auditor's recommendation. The outstanding inter-entity balance has been identified as a legacy balance associated with the RAD conversion and the transfer of assets and liabilities to Athens Housing Management, LLC. Management's review a...

Corrective Action Plan: The Housing Authority concurs with the auditor's recommendation. The outstanding inter-entity balance has been identified as a legacy balance associated with the RAD conversion and the transfer of assets and liabilities to Athens Housing Management, LLC. Management's review and reconciliation of the balance are in progress. Before recording any final disposition, the Authority will determine the balance's origin, funding source, supporting documentation, legal obligation, and collectability, including whether federally restricted or RAD/PBRA project funds are involved. The Board of Commissioners may authorize the accounting disposition of the balance, subject to the Authority's governing documents and applicable law; however, a Board vote alone will not be treated as authority to forgive or extinguish a federally restricted or project-level receivable. The Authority will complete the following process: 1. Complete and document the reconciliation and proposed accounting treatment in both entities' records, with management and legal review, and provide the supporting documentation to the Authority's auditor. 2. Determine whether the balance is subject to the RAD closing documents, HAP Contract, RAD Use Agreement, Surplus Cash requirements, or other Federal restrictions. If so, submit the reconciliation, proposed entries, supporting documentation, and draft resolutions to the appropriate HUD Field Office or Multifamily Account Executive and obtain written direction or concurrence, as applicable. 3.Present conditional resolutions to the governing boards of the Housing Authority and Athens Housing Management, LLC, as applicable, authorizing the Chief Executive Officer to record the disposition only after all required HUD approvals or concurrences have been received. 4. Record corresponding entries in both entities, retain the complete reconciliation and approval package, and disclose the final resolution to the auditor. This process is consistent with 2 CFR §§ 200.302 and 200.303, which require accurate, supported financial records, accountability for Federal funds and assets, and documented internal controls. It also recognizes the RAD Notice requirements governing Surplus Cash and related-party advances. Going forward, inter-entity balances will be reconciled monthly, reviewed by management, and any unresolved items will be reported to the Chief Executive Officer as part of the monthly financial review.

View Audit 410746

Finding 1229248 (2025-008)

Material Weakness 2025

Urshan College

MO

Cash Management Matching / Level of Effort / Earmarking Student Financial Aid § 200.303

2025-008 Federal Direct Student Loans – Assistance Listing No. 84.268 Federal Pell Grant Program – Assistance Listing No. 84.063 Recommendation: We recommend that the University should implement formal review procedures to document that the Cash Management reconciliation and drawdown reviews are bei...

2025-008 Federal Direct Student Loans – Assistance Listing No. 84.268 Federal Pell Grant Program – Assistance Listing No. 84.063 Recommendation: We recommend that the University should implement formal review procedures to document that the Cash Management reconciliation and drawdown reviews are being performed to correct errors in a timely manner and to minimize the likelihood of errors going undetected. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University performs cash management reconciliation and drawdown reviews; however, formal documentation of these reviews has not been consistently maintained. To address this, the University is implementing formal review procedures that include documented evidence of reconciliation and drawdown review activities. As part of this process, reconciliations and drawdowns prepared by FA Solutions will be reviewed by the Financial Aid Office for accuracy and completeness prior to submission and reporting. These procedures will be formalized within a standardized SOP, which will outline review timelines, responsibilities, and required documentation to ensure errors are identified and resolved in a timely manner and to reduce the risk of discrepancies going undetected. Name(s) of the contact person(s) responsible for corrective action: Levi Powell, Director of Financial Aid Planned completion date for corrective action plan: 4/30/2026

View Audit 410734

Finding 1229223 (2025-002)

Material Weakness 2025

Addiction Services Council

OH

Allowable Costs / Cost Principles Cash Management Significant Deficiency

Planned Corrective Action: Management acknowledges the finding. The Council currently maintains comprehensive fiscal policies and procedures governing its financial operations and internal controls. Management will review its existing policies against the applicable Uniform Guidance requirements ide...

Planned Corrective Action: Management acknowledges the finding. The Council currently maintains comprehensive fiscal policies and procedures governing its financial operations and internal controls. Management will review its existing policies against the applicable Uniform Guidance requirements identified during the audit and, where necessary, supplement or clarify existing policies to expressly document federal award requirements. Any necessary revisions will be incorporated into the Council’s existing fiscal policy framework. The Council will review its existing fiscal policies and procedures against applicable Uniform Guidance requirements. Existing policies will be supplemented or clarified, where necessary, to expressly address federal award administration requirements identified during the audit, including allowable costs, cash management, procurement, and conflicts of interest. The Council will incorporate any necessary revisions into its existing fiscal policy framework and maintain the policies as part of its ongoing compliance processes. Anticipated Completion Date: December 31, 2026

View Audit 410726

Finding 1229177 (2025-001)

Material Weakness 2025

The Bedford Stuyvesant Family Health Center, Inc.

NY

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.302

The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 - Cash Management - U.S. Department of Agri...

The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 - Cash Management - U.S. Department of Agriculture ({Assistance Listing Number 10.557, WIC Special Supplemental Nutrition Program for Women, Infants, and Children} Passed Through New York State Department of Health, Contract Number C38291GG - (Significant Deficiency) SJGNFICANT DEFICIENCY During our audit, we noted that there is no evidence of review of WIC vouchers submitted for payments. Recommendation We recommend that the Center implement a policy that requires all WIC voucher and supporting records to be reviewed and that such review be documented. Action Taken WIC vouchers and supporting documentation were reviewed and approved in accordance with BSFHC's established policy. However, the reviews were not documented, resulting in insufficient evidence to demonstrate that the required review had been performed. Going forward, Management will ensure that all WIC vouchers and supporting documentation are reviewed and that the review is documented through the reviewer's signature or initials. Management will monitor compliance with this requirement to ensure that documentation ofthe review is consistently maintained.

View Audit 410683

Finding 1229120 (2025-002)

Material Weakness 2025

Greene Metropolitan Housing Authority

OH

Subrecipient Monitoring HUD Housing Programs Cash Management § 200.305 § 200.414 § 200.502 § 200.510

Funds will not be drawn down until an invoice or proper pay request is received, and purchase order or contract are in hand, and payment is made promptly within no more than three business days. The Schedule of Expenditures of Federal Awards will be reviewed by Management that all funding received a...

Funds will not be drawn down until an invoice or proper pay request is received, and purchase order or contract are in hand, and payment is made promptly within no more than three business days. The Schedule of Expenditures of Federal Awards will be reviewed by Management that all funding received and reported has be fully expensed by the Authority prior to submission on the Hinkle system for audit.

View Audit 410616

Finding 1229085 (2025-002)

Material Weakness 2025

Fiesta House Senior Housing, Inc.

CA

Subrecipient Monitoring Cash Management HUD Housing Programs

Name of auditee: Fiesta House Senior Housing, Inc. HUD auditee identification number: 122-EE166-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 Curren...

Name of auditee: Fiesta House Senior Housing, Inc. HUD auditee identification number: 122-EE166-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 Statement of condition 2025-002: During the year ended December 31, 2025, management submitted a 9250 to withdraw funds from the reserve for replacements fund that included 16 of the same invoices as a previously approved 9250. The reserve for replacements account was not reimbursed for the duplicate withdrawal. In addition, management submitted and received approval for two proposals for work that was not completed. Comments on the Finding and Each Recommendation: Management should transfer $62,856 from the operating account to the reserve for replacements account. Action(s) taken or planned on the finding: Management will deposit the $62,856 during 2026.

View Audit 410549

Finding 1229084 (2025-001)

Material Weakness 2025

Fiesta House Senior Housing, Inc.

CA

Cash Management HUD Housing Programs Subrecipient Monitoring

Name of auditee: Fiesta House Senior Housing, Inc. HUD auditee identification number: 122-EE166-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 Curren...

Name of auditee: Fiesta House Senior Housing, Inc. HUD auditee identification number: 122-EE166-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 Statement of condition 2025-001: The Corporation paid entity costs of $6,950 from operating cash. Comments on the Finding and Each Recommendation: The Sponsor should reimburse the Corporation $6,950 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 plans to request reimbursement from the reserve for replacement in 2026.

View Audit 410549

Finding 1229013 (2025-004)

Material Weakness 2025

Talbot County Board of Education

GA

Subrecipient Monitoring Cash Management § 200.302 § 200.303

FA 2025-004 Strengthen Controls over Financial Reporting Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Questioned Costs: Description: Reporting Material Weakness Material No...

FA 2025-004 Strengthen Controls over Financial Reporting Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Questioned Costs: Description: Reporting Material Weakness Material Noncompliance U.S. Department of Education Georgia Department of Education COVID-19- 84.425U -American Rescue Plan Elementary and Secondary School Emergency Relief Fund S425U210012 (Year: 2024) $56,118.84 The School District did not file accurate completion reports for the Elementary and Secondary School Emergency Relief Fund program. Corrective Action Plans: • The CFO will check all federal Grants as a whole by running the general ledger and taking the difference of expenditures to revenue. The CFO will ensure the completion report is done with the final general ledger of the fiscal year. Estimated Completion Date: December 18, 2026 Contact Person: Torrence H. Freeman 111, CFO Telephone: 706-665-8577 Email: tfreeman@talbot.k12.ga.us

View Audit 410487

Finding 1229012 (2025-003)

Material Weakness 2025

Talbot County Board of Education

GA

Cash Management Subrecipient Monitoring § 200.302 § 200.303 § 200.305

FA 2025-003 Strengthen Controls over Cash Management Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Description: Cash Management Material Weakness Material Noncompliance U.S....

FA 2025-003 Strengthen Controls over Cash Management Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Description: Cash Management Material Weakness Material Noncompliance U.S. Department of Education Georgia Department of Education COVID-19 - 84.425U -American Rescue Plan Elementary and Secondary School Emergency Relief Fund S425U210012 (Year: 2024) The School District made cash drawdowns in excess of the immediate cash needs of the Elementary and Secondary School Emergency Relief Fund program. Corrective Action Plans: • The CFO will check all federal grants as a whole by running the general ledger and taking the difference of expenditures to revenue received to ensure that any changes to expenditures in prior months are accurately reflected in the draw down. If it is found that there is an excess of cash, funds will be immediately returned to GaDOE. Estimated Completion Date: December 18, 2026 Contact Person: Torrence H. Freeman 111, CFO Telephone: 706-665-8577 Email: tfreeman@talbot.k12.ga.us

View Audit 410487

Finding 1228736 (2025-001)

Material Weakness 2025

Arenac County

MI

Procurement, Suspension & Debarment Subrecipient Monitoring Equipment & Real Property Management

The County will work with Rehmann to develop policies and procedures sufficient to satisfy the rules of the uniform guidance.

View Audit 410406

Finding 1228672 (2025-005)

Material Weakness 2025

Mending Hearts, Inc.

TN

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.303 § 200.305

Finding 2025-005: Inadequate Controls Over Federal Reimbursement Draw Requests - Significant Deficiency Corrective Action Plan: For each SAMHSA draw request, budget, general ledger and payroll expenditures are reviewed prior to PMS funding requests and approved by CEO. To further document this proce...

Finding 2025-005: Inadequate Controls Over Federal Reimbursement Draw Requests - Significant Deficiency Corrective Action Plan: For each SAMHSA draw request, budget, general ledger and payroll expenditures are reviewed prior to PMS funding requests and approved by CEO. To further document this process, below actions will be implemented. • Implement a detailed Federal Reimbursement Draw Request Procedure. • Require a detailed expenditure schedule showing vendor/payee, invoice or payroll reference, expenditure date, payment date, amount, grant/program, general ledger account, and grant period. • Include only incurred, paid, allowable, and allocable expenditures in reimbursement requests. • Retain invoices, payroll records, proof of payment, general ledger support, and other documentation with each draw package. • Require preparer certification and an independent documented review before submission. • Verify payment status, allowability, grant coding, period of performance, and reconciliation to the accounting system before submission. Responsible Official: Chief Executive Officer, Chief Financial Officer, Financial Coordinator, Grant Program Director and Grant Administrative Support Anticipated Completion Date: 09/25/2026

View Audit 410338

Finding 1228663 (2025-003)

Material Weakness 2025

Mid-America Arts Alliance

MO

Allowable Costs / Cost Principles Cash Management HUD Housing Programs

Finding #2025-003 – Material Weakness and Material Noncompliance – Allowable Costs. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract periods: 10/01/23 – 09/30/24; 10/01/24 – 09/30/2...

Finding #2025-003 – Material Weakness and Material Noncompliance – Allowable Costs. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract periods: 10/01/23 – 09/30/24; 10/01/24 – 09/30/25. Condition and context: M-AAA failed to submit its indirect cost rate application in 2024, which resulted in a lapse in an approved rate. At the direction of the program officer at the National Endowment for the Arts, M-AAA was directed to use the 10% de minimus rate; however, the billings were not adjusted for the change in indirect rates resulting in overbilling to the federal grants. Recommendation: Re-emphasize internal procedures for review of allowable indirect costs based upon an approved indirect cost rate or election to use 10% de minimus rate. Planned corrective action: M-AAA has elected to use de minimus rate approved by the National Endowment for the Arts (NEA). We reported the overbilling to the NEA and resolved the difference in the indirect costs that had been applied. Responsible officer: Todd Stein, CEO and Charley Young, Finance Director. Estimated completion date: March 2026.

View Audit 410317

Finding 1228662 (2025-002)

Material Weakness 2025

Mid-America Arts Alliance

MO

Allowable Costs / Cost Principles Cash Management HUD Housing Programs

Finding #2025-002 – Material Weakness and Other Noncompliance – Cash Management. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract period: 10/01/22 – 09/30/27. Condition and context:...

Finding #2025-002 – Material Weakness and Other Noncompliance – Cash Management. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract period: 10/01/22 – 09/30/27. Condition and context: The federal contract with M-AAA is a 5-year grant with annual budget periods that end September 30 of each of the years in the contract thru 2027. M-AAA requested advances in the Spring of 2025 when there was uncertainty in the timing of future grant payments. At June 30, 2025, M‑AAA held approximately $578,000 in refundable advances, approximately $368,000 which was spent subsequent to year end for the period of July 1, 2025 to September 30, 2025. Recommendation: Re-emphasize internal procedures to ensure federal funds are not being held for an excess period of time. Planned corrective action: M-AAA was uncertain about the timing of future grant payments and requested advances in April 2025. Because payments to subrecipients were delayed, excess funds remained on hand at fiscal year-end and were distributed in the following fiscal year. With a stronger cash position in the new fiscal year, we have shifted to a reimbursement-based approach for cash requests. Advances will be requested only when grant payments are expected within 30 days and closely monitored to ensure close out. Responsible officer: Todd Stein, CEO and Charley Young, Finance Director. Estimated completion date: December 2025.

View Audit 410317

Finding 1228658 (2025-007)

Material Weakness 2025

City of Aurora, Colorado

CO

Cash Management HUD Housing Programs Reporting § 200.328 § 200.329

Reporting – Financial and Performance Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 and B-23-CP-CO-0280 Award Year ...

Reporting – Financial and Performance Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 and B-23-CP-CO-0280 Award Year – 2022 and 2023 Condition: During testing, it was noted that the semiannual performance reports required to be submitted during calendar year 2025 were not submitted by the required deadlines. The reports, which were due in January 2025 and July 2025, were not submitted until September 2025. As a result, the Grantee did not submit required financial and performance reports within the timeframe prescribed by the grant agreement and 2 CFR §§ 200.328 and 200.329. Additionally, management could not provide evidence of review for one of the reports. Planned Corrective Action: Departments that administer grants will establish and maintain a grant tracking process to identify required reporting, due dates, and personnel responsible for the completion and review of the required reporting. This tracking process will be documented and shared with the Controller’s Office. In addition, Departments will maintain documentation of the review and approval of reports as part of the grant documentation. City of Aurora Responsible Party: Stephanie Keiper, Homelessness Division Manager; Matthew Kipp, Manager of Business Services; Tim Sherbondy, Grant Compliance Officer; and Tyra Litzau, Controller Anticipated Completion Date: March 31, 2027

View Audit 410304

Finding 1228654 (2025-003)

Material Weakness 2025

Beltrami County

MN

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

RANDOM MOMENT STUDY (RMS) EMPLOYEE LISTING Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Grants to States for Medicaid (Medicaid Cluster) and Temporary Assistance for Needy Families (TANF) Assistance Listing Number: 93.778 and 93.558 Pass-Through Agency: Minneso...

RANDOM MOMENT STUDY (RMS) EMPLOYEE LISTING Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Grants to States for Medicaid (Medicaid Cluster) and Temporary Assistance for Needy Families (TANF) Assistance Listing Number: 93.778 and 93.558 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Health Pass-Through Numbers: 2505MN5ADM, 2505MN5MAP, and 2501MNTANF Award Period: Year-Ended December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Recommendation: It is recommended the County implement a quarterly review and reconciliation procedure to ensure that the population of participating workers included in each RMS listing agrees to the population of participating workers whose salaries and wages were recorded to the corresponding payroll accounts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will strive to implement quarterly review and reconciliation procedures over the RMS listing and corresponding payroll accounts. Name of the contact person responsible for corrective action plan: Anne Lindseth, Health and Human Services Director Planned completion date for corrective action plan: December 31, 2026

View Audit 410296

Finding 1228637 (2025-001)

Material Weakness 2025

Housing Authority of the City of Dothan

AL

Cash Management HUD Housing Programs Matching / Level of Effort / Earmarking

2025-001 – ALN 14.881 – Moving to Work Demonstration Program – Allowable Activities Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. The Authority has begun taking corrective action to address the matter. Th...

2025-001 – ALN 14.881 – Moving to Work Demonstration Program – Allowable Activities Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. The Authority has begun taking corrective action to address the matter. The Authority has contacted HUD to obtain guidance on the appropriate method for resolving the balance and ensuring compliance with applicable requirements. Upon receiving HUD's direction, the Authority will implement the necessary corrective measures and take steps to prevent similar issues from occurring in the future. Person Responsible for Correction of Finding: Bonita Schatz, Chief Executive Officer Projected Completion Date: Ongoing work in progress. No completion date can currently be determined.

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