Corrective Action Plans

Finding 1186766 (2025-011)

Material Weakness 2025

TN

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

The Tennessee State Veterans Homes (VHB) partially concurs. While the Tennessee State Veterans Homes (VHB) grant application did not explicitly itemize retention bonuses, their use is consistent with the framework and intent of the grant, as defined in 38 CFR Part 53.11(b), which states the purpose ...

The Tennessee State Veterans Homes (VHB) partially concurs. While the Tennessee State Veterans Homes (VHB) grant application did not explicitly itemize retention bonuses, their use is consistent with the framework and intent of the grant, as defined in 38 CFR Part 53.11(b), which states the purpose is for an “employee incentive program to reduce the shortage of nurses at the TSVH.” The VHB is also actively consulting with the VA to clarify the status of prior billings and determine the appropriate path forward if any are deemed improper. As of the date of this update, we have not received a response.

View Audit 394493

Finding 1186762 (2025-008)

Material Weakness 2025

Van Buren County, Tennessee

TN

Subrecipient Monitoring Reporting Cash Management

The Tennessee Housing Development Agency Management (THDA) partially concurs. THDA has continued to refine its process to ensure timely and accurate reporting. In 2025, steps were taken to review reports prior to submission. The Manager additionally consulted with APPRISE, Inc., the data management ...

The Tennessee Housing Development Agency Management (THDA) partially concurs. THDA has continued to refine its process to ensure timely and accurate reporting. In 2025, steps were taken to review reports prior to submission. The Manager additionally consulted with APPRISE, Inc., the data management firm contracted to support HHS and LIHEAP grantees, prior to report submission. Apprise acknowledges that the report templates do not properly identify errors and encourages THDA to submit reports even when errors are noted. Any instances where errors were substantiated following report submission have been corrected in consultation with APPRISE. HHS has accepted all reports submitted by THDA and we have received no communication from HHS that THDA is in jeopardy of their consideration of any of the effects noted in your letter. We do acknowledge that there was an instance where numbers were not reported correctly or timely due to lags in getting the Low Income Home Energy Assistance Program (LIHEAP) weatherization data as well as improper grantee reporting. We are working to resolve this issue through the implementation of new software that will join the LIHEAP utility assistance and LIHEAP weatherization data together, on a single platform. THDA launched the software for the utility assistance segment of LIHEAP on November 1, 2025, and we expect the LIHEAP weatherization data to be online by October 1, 2026. THDA's work in 2025 to improve its reporting accuracy has been impacted considerably by inconsistent guidance at the Federal level. Since January 2025, due to periods of non-communication by the Health & Human Services (HHS) and subsequent reductions and changes in staffing at HHS, we have received various interpretations of HHS guidance. For instance, HHS has provided differing definitions of "obligation", creating some confusion with reporting. To date, HHS has not provided a final definition. THDA will continue to report obligations as is stated in our Model Plan, when funds are awarded and a contract is fully executed with the sub-grantee.

View Audit 394493

Finding 1186759 (2025-005)

Material Weakness 2025

Van Buren County, Tennessee

TN

Matching / Level of Effort / Earmarking Subrecipient Monitoring Cash Management

The Tennessee Department of Education (TDOE) concurs. Matching: On July 10, 2025, cross‑divisional staff members from the Tennessee Department of Education (TDOE) participated in a virtual training with Andrew Johnson from the U.S. Department of Education (ED), Office of Career, Technical, and Adult...

The Tennessee Department of Education (TDOE) concurs. Matching: On July 10, 2025, cross‑divisional staff members from the Tennessee Department of Education (TDOE) participated in a virtual training with Andrew Johnson from the U.S. Department of Education (ED), Office of Career, Technical, and Adult Education (OCTAE). The training agenda included an overview of matching requirements for the Perkins grant. Additionally, TDOE has procured training scheduled for April 1, 2026. Cross‑divisional staff members will engage in a full day of training focused on both programmatic and fiscal topics, including matching requirements, to further build team capacity. To support internal collaboration, CTE program staff currently attend monthly budget meetings to review and discuss program expenditures including both federal and state funds and determine whether adjustments are needed. Historically, these meetings focused primarily on program allowability; however, they were expanded to include a review of matching requirements specifically. Maintenance of Effort (MOE): On July 10, 2025, cross‑divisional staff members from the Tennessee Department of Education (TDOE) participated in a virtual training with Andrew Johnson from the U.S. Department of Education (ED), Office of Career, Technical, and Adult Education (OCTAE). The training agenda included an overview of Maintenance of Effort (MOE) requirements for the Perkins grant. Additionally, TDOE has procured training scheduled for April 1, 2026. Cross‑divisional staff members will engage in a full day of training focused on both programmatic and fiscal topics, including MOE requirements, to further build team capacity. The TDOE Fiscal Director reviews financial data and discusses any concerns or questions with CTE Program Managers. Processes have been updated to include documentation of these discussions. The team is implementing internal controls to ensure compliance with federal matching and MOE requirements. These controls include developing and documenting key processes and procedures to promote consistent and ongoing compliance. Documentation of review activities will be collected to demonstrate compliance and support ongoing monitoring of fiscal practices. In addition, leadership will evaluate the effectiveness of these control activities in mitigating identified risks and update the department’s annual risk assessment to reflect any new or revised controls implemented as a result of this finding.

View Audit 394493

Finding 1186740 (2025-002)

Material Weakness 2025

Notre Dame of Maryland University, INC

MD

Questioned Costs Special Tests & Provisions Student Financial Aid

View of Responsible Officials The University concurs with this finding. Management has reviewed its processes for monitoring and issuing Title IV credit balance refunds and has implemented procedures to ensure refunds are processed within the required 14-day timeframe. The Financial Aid and Student ...

View of Responsible Officials The University concurs with this finding. Management has reviewed its processes for monitoring and issuing Title IV credit balance refunds and has implemented procedures to ensure refunds are processed within the required 14-day timeframe. The Financial Aid and Student Accounts offices will review credit balance reports on a regular basis to identify students eligible for refunds and confirm timely disbursement. In addition, staff have been reminded of federal requirements related to credit balance refunds. Management will monitor this process periodically to ensure ongoing compliance.

View Audit 394478

Finding 1186737 (2025-001)

Material Weakness 2025

Spotsylvania County

VA

Internal Control / Segregation of Duties Cash Management Matching / Level of Effort / Earmarking

Recommendation: We recommend that the management of the school system implement policies and procedures to ensure that documentation evidencing the separate preparation and approval of the monthly reimbursement requests are retained for audit purposes. Explanation of disagreement with audit finding:...

Recommendation: We recommend that the management of the school system implement policies and procedures to ensure that documentation evidencing the separate preparation and approval of the monthly reimbursement requests are retained for audit purposes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Example- The School Board will establish an additional level of segregation of duties within the monthly reimbursement process, prior to submission, to ensure appropriate oversight and review. Procedures now require that the preparation of reimbursement reports be performed by one staff member, while the review and approval of the reports are completed by a separate individual, independent of the preparer, prior to submission. Evidence of review and approval is documented and retained in accordance with Federal record-retention requirements.

View Audit 394472

Finding 1186730 (2025-004)

Material Weakness 2025

Lyon College

AR

Allowable Costs / Cost Principles Questioned Costs Cash Management

Finding 2025-004: Material Weakness in Internal Control and Material Noncompliance – Allowable Costs/Cost Principles & Cash Management – Community Project Funding/Congressional Directives Program Corrective Action: The College will strengthen oversight of federal grant cash management and compliance...

Finding 2025-004: Material Weakness in Internal Control and Material Noncompliance – Allowable Costs/Cost Principles & Cash Management – Community Project Funding/Congressional Directives Program Corrective Action: The College will strengthen oversight of federal grant cash management and compliance with federal regulations. Management will review and enforce existing cash management policies to ensure that federal funds are drawn only as needed for allowable costs and in accordance with 2 CFR 200.305. Additional internal controls will be implemented to ensure that grant expenditures are reviewed for allowability and that drawdowns are properly timed with actual program expenditures. Management has reviewed the grant activity related to the questioned costs identified during the audit. Prior to the completion of the audit fieldwork, all equipment associated with the grant had been purchased in accordance with the grant’s approved purposes. The College will continue to monitor expenditures and grant activity to ensure that all remaining grant funds are used in compliance with federal requirements and the terms of the grant agreement. Proposed Completion Date: June 30, 2026

View Audit 394450

Finding 1186708 (2025-004)

Material Weakness 2025

College Unbound

RI

Student Financial Aid Questioned Costs Cash Management

Finding number: 2025-004 Federal agency: U.S. Department of Education Programs: Student Financial Assistance Cluster Assistance listing #: 84.063 and 84.268 Award year: 2025 Corrective Action Plan: College Unbound is expanding capacity, hiring in both the Financial Aid and Accounting departments. We...

Finding number: 2025-004 Federal agency: U.S. Department of Education Programs: Student Financial Assistance Cluster Assistance listing #: 84.063 and 84.268 Award year: 2025 Corrective Action Plan: College Unbound is expanding capacity, hiring in both the Financial Aid and Accounting departments. We are also hiring a new CFO in the Summer of 2026. With this increased capacity, we will have backups for each process and institute a series of double checks in order to ensure accuracy. Timeline for Implementation of Corrective Action Plan: August 15, 2026 Contact Person: Mark Hartonchik, Interim CFO

View Audit 394416

Finding 1186707 (2025-002)

Material Weakness 2025

Evergreen Local School District

OH

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

Management is aware and understands the importance of compliance with the federal requirements. The District’s receipts are accurately reported within Payschools, however, meal counts can be updated. Management will ensure the meal count will be properly reported in the future.

View Audit 394415

Finding 1186675 (2025-001)

Material Weakness 2025

The Primary Care Coalition of Montgomery County, Maryland, Inc.

MD

Allowable Costs / Cost Principles Cash Management Questioned Costs

Views of Responsible Official: Management notes that the Federal Payment Management System (PMS) automatically tracks when different users enter information such as submitting and certifying/approving draw-down amounts. During the time of the grant there were periods when only one staff member had a...

Views of Responsible Official: Management notes that the Federal Payment Management System (PMS) automatically tracks when different users enter information such as submitting and certifying/approving draw-down amounts. During the time of the grant there were periods when only one staff member had access to PMS due to technical issues and delays in adding new users. To ensure there is back-up documentation of the approval workflow, we will institute a form to capture the individual signatures of the preparer and submitter of each draw down as additional evidence of multiple people connected to the process.

View Audit 394372

Finding 1186661 (2025-001)

Material Weakness 2025

Conway Apartments, Inc.

AR

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

Name: Conway Apartments, Inc. Contact: Jeffrey Woods, Director of Accounting Contact Phone Number: 479-967-5570 Audit Period Ending: June 30, 2025 Anticipated Completion Date: March 18, 2026 Finding 2025-001: The Project did not remit residual receipts in excess of $250 per unit to HUD upon renewal ...

Name: Conway Apartments, Inc. Contact: Jeffrey Woods, Director of Accounting Contact Phone Number: 479-967-5570 Audit Period Ending: June 30, 2025 Anticipated Completion Date: March 18, 2026 Finding 2025-001: The Project did not remit residual receipts in excess of $250 per unit to HUD upon renewal of its PRAC on January 1, 2025, as required by HUD guidance. Management had not recorded a liability for the recapture and was not aware of the requirements. Management’s Response and Planning Corrective Actions: Management has contacted Willaim Stokes at HUD and has been advised to use the funds on an upcoming remodel. The money will be spent by June 30, 2026. Moving forward the Residual Account will be monitored to ensure prompt repayment of funds. Management concurs with findings and plans to implement recommendations above.

View Audit 394363

Finding 1186647 (2025-004)

Material Weakness 2025

Lyford Consolidated Independent School District

TX

Cash Management Reporting School Nutrition Programs § 200.303

Reference Number: 2025-004 No secondary review of meal claim reimbursements prior to submission Corrective Action Plan: The District will implement procedures that incorporate a second review of meal reimbursement claims before the request is submitted for reimbursement during the monthly processing...

Reference Number: 2025-004 No secondary review of meal claim reimbursements prior to submission Corrective Action Plan: The District will implement procedures that incorporate a second review of meal reimbursement claims before the request is submitted for reimbursement during the monthly processing. Contact Person: Cristina Campbell Implementation Time Frame: August 31, 2026

View Audit 394343

Finding 1186633 (2025-002)

Material Weakness 2025

Mississippi Regional Housing Authority No. V

MS

HUD Housing Programs Questioned Costs Subrecipient Monitoring

To the Department of Housing and Urban Development, During the audit of the Housing Authority’s fiscal year ended June 30, 2025 financial statements, it was determined that the unaudited financial data schedule that is utilized as the Housing Authority’s underlying financial statements were not prop...

To the Department of Housing and Urban Development, During the audit of the Housing Authority’s fiscal year ended June 30, 2025 financial statements, it was determined that the unaudited financial data schedule that is utilized as the Housing Authority’s underlying financial statements were not properly stated. Significant errors existed regarding grant receivables, the allowance for doubtful accounts - tenants, capital assets, accounts payable, grant revenues and bad debt expense. Also, a desk review was performed by HUD and it was determined that the Housing Authority had not properly documented its calculation of monthly voucher leased amounts and it understated its Housing Assistance Payment expenses in its VMS reporting. The Housing Authority’s Executive Director, Ashiya Hawkins, is responsible for implementing the corrective action plan. Finding 2025-002 - VMS Reporting Deficiencies We concur with the recommendation and we will establish standard operating procedures that ensure that the HAP amounts and number of vouchers stated on the VMS report are both accurate and properly documented. We are working with our software provider to ensure that VMS reporting software is being fully and correctly utilized. We are also planning on additional training for HCV employees to make sure they are qualified to meet VMS reporting and documentation requirements.

View Audit 394328

Finding 1186607 (2025-002)

Material Weakness 2025

Randolph School District

WI

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

Finding #2025-002: #84.184X – Wisconsin Well Be’s School-Based Mental Health Consortium Federal Grantor Agency: U.S. Department of Education Compliance Requirement: Cash Management Condition: During our audit procedures, it was determined that there was miscommunication between the grant manager and...

Finding #2025-002: #84.184X – Wisconsin Well Be’s School-Based Mental Health Consortium Federal Grantor Agency: U.S. Department of Education Compliance Requirement: Cash Management Condition: During our audit procedures, it was determined that there was miscommunication between the grant manager and the business manager. Therefore, an additional claim was made which resulted in the District receiving federal funds in excess of immediate needs. Effect: The District received federal funds in excess of immediate needs and before disbursement for allowable program costs. Cause: The District’s internal controls failed to identify a duplicate claim submitted for federal funds. Criteria: It is necessary under U.S. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly called "Uniform Guidance") and under most federal grant agreements that the recipient must implement financial management system that provide proper fund control, which ensures funds used in a timely fashion. Recommendation: We recommend that the District implement a pre-submission check to verify that invoices have not been previously claimed. Response: The funds were fully used up in the following fiscal year as expenditures were incurred. The grant funding has been cut as of December 31, 2025. This finding has been resolved.

View Audit 394302

Finding 1186587 (2025-002)

Material Weakness 2025

Housing for Rockdale Elders, Inc.

MA

HUD Housing Programs Questioned Costs Special Tests & Provisions

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: Nove...

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: November 1, 2024 - October 31, 2025 The findings from the October 31, 2025 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2025-002 - Special Tests and Provisions - Significant Deficiency Recommendation: We recommend that the Corporation establish internal controls over its residual receipts compliance requirements to ensure that the Corporation is in compliance with Uniform Guidance and its regulatory agreement. Action Taken: Management agrees with the finding and is in the process of revising internal controls to address this issue. Additionally, on February 9, 2026, this was corrected.

View Audit 394285

Finding 1182962 (2025-302)

Material Weakness 2025

State of Wisconsin

WI

Reporting Internal Control / Segregation of Duties Cash Management § 200.303

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-302: Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. This is the department’s Corrective Action Plan.  Recommendation (2025-302): Grants to States for Me...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-302: Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. This is the department’s Corrective Action Plan.  Recommendation (2025-302): Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. We recommend the Wisconsin Department of Health Services: • Enforce with the fiscal agent that directives require appropriate approval and that the fiscal agent should confirm any directive where the approver may not be authorized; • Ensure that the listings of authorized directive approvers provided to the fiscal agent are updated at least quarterly; • Review policies related to directives, updated the policies to identify those directives that require an approver other than the creator, and document justifications for any directives for which the creator and approver may be the same employee; and • Access the feasibility of changes to the PRISM system that would enforce an approval from a user other than the creator of a directive. Wisconsin Department of Health Services Planned Corrective Action: DMS will ensure that the fiscal agent follows DHS policy to confirm directive approvals. In addition, DHS will update the authorized approvers list at least quarterly, define in policy when an approver other than the creator is needed, and consider changes to the PRISM system to enforce separation of duties between creator and approver. If system changes are feasible, the corrective actions will require additional time to complete beyond what is needed for the policy and procedure changes. Anticipated Completion Date: June 30, 2026 Persons responsible for corrective action: Carrie Kahn, Section Manager Systems Infrastructure Accountability Section, Bureau of Fiscal Accountability and Management, Division of Medicaid Services CarriePKahn@dhs.wisconsin.gov

View Audit 394279

Finding 1182961 (2025-301)

Material Weakness 2025

State of Wisconsin

WI

Questioned Costs Cash Management Eligibility

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-301: Grants to States for Medicaid and Children’s Health Insurance Program – Computer Data Matches. This is the department’s Corrective Action Plan.  Recommendation (2025-301): Grants to States fo...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-301: Grants to States for Medicaid and Children’s Health Insurance Program – Computer Data Matches. This is the department’s Corrective Action Plan.  Recommendation (2025-301): Grants to States for Medicaid and Children’s Health Insurance Program – Computer Data Matches. We recommend the Wisconsin Department of Health Services: • Identify and implement procedures to monitor the timeliness with which data match discrepancies are resolved and perform follow-up with local agencies as needed; and • Continue efforts to assess solutions for resolving state wage information collection agency data match discrepancies in a timely manner to determine if system or policy changes are needed. Wisconsin Department of Health Services Planned Corrective Action: Beginning in February 2026, the Medicaid Eligibility Quality Control Unit will include State Wage Information Collection Agency (SWICA) discrepancies in the monthly report that is available to Income Maintenance (IM) agencies through SharePoint. IM workers are expected to address the discrepancies. The Medicaid Eligibility Quality Control Unit will monitor the agencies to ensure they are completing the SWICA work. Prior to receipt of this finding in the fall of 2025, DHS initiated a project to assess the current state of SWICA discrepancy processing, develop solutions to improve the process, and consider automation options. The Bureau of Eligibility Operations and Training and the Bureau of Eligibility Enrollment and Policy are currently weighing several proposed solutions. If it is determined that changes to CARES are required, the project completion will depend on prioritization and coordination of CARES updates. Anticipated Completion Date: November 2027 Persons responsible for corrective action: Jonelle Brom, Director Bureau of Eligibility Operations and Training, Division of Medicaid Services Jonellem.Brom@dhs.wisconsin.gov

View Audit 394279

Finding 1182960 (2025-306)

Material Weakness 2025

State of Wisconsin

WI

Allowable Costs / Cost Principles Questioned Costs Procurement, Suspension & Debarment § 200.403 § 200.406

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-306: Children’s Health Insurance Program – Reconciliation of Vaccine Purchases. This is the department’s Corrective Action Plan.  Recommendation (2025-306): Children’s Health Insurance Program – R...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-306: Children’s Health Insurance Program – Reconciliation of Vaccine Purchases. This is the department’s Corrective Action Plan.  Recommendation (2025-306): Children’s Health Insurance Program – Reconciliation of Vaccine Purchases We recommend the Wisconsin Department of Health Services comply with federal regulations and ensure it performs annual reconciliations to calculate any differences between the estimated cost and the actual cost of vaccines for SCHIP participants and then adjusts the estimate for vaccine purchases funded from the Children’s Health Insurance Program (CHIP). Wisconsin Department of Health Services Planned Corrective Action: The Division of Enterprise Services and the Division of Public Health worked together to complete the reconciliation and adjust the estimate for FFY 2026. However, this work was done after the end of the audit period. This work effectively returned the $2.6 million in unallowable costs included in the memo to the federal government. The divisions will continue to work together to perform an annual reconciliation and adjust the estimate going forward. Anticipated Completion Date: September 1, 2026 Persons responsible for corrective action Becky Mogensen, Section Chief Managerial Accounting Section, Bureau of Fiscal Services, Division of Enterprise Services rebeccaj.mogensen@dhs.wisconsin.gov Elizabeth Brotheridge, Section Manager Communicable Disease Administration Section, Bureau of Communicable Diseases, Division of Public Health elizabeth.brotheridge@dhs.wisconsin.gov

View Audit 394279

Finding 1182956 (2025-300)

Material Weakness 2025

State of Wisconsin

WI

Eligibility Questioned Costs Cash Management

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-300: Eligibility for the Children’s Health Insurance Program. This is the department’s Corrective Action Plan.  Recommendation (2025-300): Eligibility for the Children’s Health Insurance Program W...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-300: Eligibility for the Children’s Health Insurance Program. This is the department’s Corrective Action Plan.  Recommendation (2025-300): Eligibility for the Children’s Health Insurance Program We recommend the Wisconsin Department of Health Services continue its efforts to monitor for Children’s Health Insurance Program participants who exceed the age requirement to ensure they are identified and removed in a timely manner. Wisconsin Department of Health Services Planned Corrective Action: On August 1, 2025, a CARES Coordinator Notice was sent to Income Maintenance agencies to emphasize the Monthly BC CHIP Report, which provides a list of individuals aging out of the program in the following month. Beginning with this notification, agencies were required to work the cases on the list and notify DHS of completion on or before the 10th of each month. Since August 2025, agencies have followed the directives in the notice and are informing DHS when work is completed on each case. Anticipated Completion Date: August 2025 Persons responsible for corrective action: Jonelle Brom, Director Bureau of Eligibility Operations and Training, Division of Medicaid Services Jonellem.Brom@dhs.wisconsin.gov

View Audit 394279

Finding 1182936 (2025-700)

Material Weakness 2025

State of Wisconsin

WI

Cash Management Subrecipient Monitoring § 200.305

Finding 2025-700: Dairy Business Innovation Initiatives—Cash Management Planned Corrective Action: To comply with federal cash management requirements, Research and Sponsored Programs (RSP) revised all contracts with WCMA to be standard cost-reimbursement only agreements. RSP developed a cash manage...

Finding 2025-700: Dairy Business Innovation Initiatives—Cash Management Planned Corrective Action: To comply with federal cash management requirements, Research and Sponsored Programs (RSP) revised all contracts with WCMA to be standard cost-reimbursement only agreements. RSP developed a cash management guidance that specifies the circumstance and requisites in which a cash advance may be suitable with department and RSP Director approval. The guidance has been shared with pre- and post- award RSP staff. Anticipated Completion Date: April 1, 2026 Person responsible for corrective action: Liz Bevins-Smith, Director of Research Financial Services Research and Sponsored Programs bivinssmith@rsp.wisc.edu

View Audit 394279

Finding 1182927 (2025-043)

Material Weakness 2025

State of South Carolina

SC

Cash Management Subrecipient Monitoring § 200.303

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-043] (Cash Management) Immunization Cooperative Agreements and Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health Assistance Listings: 93.268 and 93.967 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: The agency has implemented additional procedures to ensure that all applicable documents receive the required second-level review and signature prior to final processing. These processes include reinforcing review requirements with staff and incorporating additional verification steps to confirm that a second signature is obtained and documented. The agency will continue to monitor this control to ensure compliance going forward. The overdraw observed for Immunizations was the result of a timing issue. A draw was processed based on the cash balance at that time, and a subsequent journal entry reclassified revenue. This sequence temporarily created an overstated cash balance; however, the balance was then applied to payroll and other eligible expenses. Regarding the Collaboration with Academia grants, these discrepancies occurred during a period when the agency was utilizing the draw database, which at that time was not pulling accurate data. The agency has since corrected the process used to perform federal draws to ensure accuracy and proper reconciliation. Any remaining balance was applied to allowable program expenses, and the grant has since been properly closed out with no remaining balance. Anticipated Completion Date: June 30, 2026 The contact person responsible for corrective action: . Katie Tillman, Director, Grant Compliance at 803-898-4103

View Audit 394274

Finding 1182892 (2025-021)

Material Weakness 2025

State of South Carolina

SC

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

The Department of Environmental Services respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with ...

The Department of Environmental Services respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Environmental Protection Agency Performance Partnership Grants – Assistance Listing No. 66.605 Disposition of Audit Finding: The Department of Environmental Services agrees with the audit finding. Corrective Action: A new process has been put into place where the draws are performed by one staff member and then reviewed by another. This process is documented with signatures of both staff members. Anticipated Completion Date: Processed started July 1, 2025, and will ongoing Simon Li and Doug Beaty are responsible for corrective action: • Simon Li at 803-898-3443 • Doug Beaty at 803-898-3453

View Audit 394274

Finding 1182890 (2025-019)

Material Weakness 2025

State of South Carolina

SC

Cash Management Subrecipient Monitoring § 200.303

The South Carolina Department of Environmental Services (SCDES) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are ...

The South Carolina Department of Environmental Services (SCDES) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Environmental Protection Agency Drinking Water – Assistance Listing No. 66.468 Disposition of Audit Finding: The SCDES concurs with the audit finding. Corrective Action: An error was found in the report used to perform draws. Due to the number of draws performed at a time, the duplicate draw was not caught by the drawing staff. The report has been corrected. Also, two Budget staff review the draws to ensure that the amounts are correct. This dual control will be supported by two signatures on the draw forms. Anticipated Completion Date: 7/1/2025. The Budget staff will be responsible for the corrective action plan. Simon Li 803-898-3443

View Audit 394274

Finding 1182889 (2025-018)

Material Weakness 2025

State of South Carolina

SC

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

The South Carolina Department of Environmental Services (SCDES) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are ...

The South Carolina Department of Environmental Services (SCDES) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Environmental Protection Agency Drinking Water – Assistance Listing No. 66.468 Disposition of Audit Finding: The SCDES concurs with the audit finding. Corrective Action: Grant draws will be created by one Budget staff member and reviewed by another Budget staff member. The creation and review process of the draws will be supported by two signatures recorded on the draw form, that of the creator and that of the reviewer. Anticipated completion date: July 1, 2025 the process was put into place. The Budget staff along with the Program staff will be responsible for the corrective action plan. Simon Li 803-898-3443

View Audit 394274

Finding 1182860 (2025-007)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Cash Management Allowable Costs / Cost Principles § 200.303

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT U.S. Department of Defense National Guard Military Operations and Maintenance (O&M) Projects – Assistance Listing No. 12.401 Disposition of Audit Finding: The Office of the Adjutant General non-concurs with the audit finding. 1. The cited Regulation (National Guard Regulation 5-1) was changed from a Regulation to a policy guideline in 2020 by the National Guard Bureau (NGB) Grants and Cooperative Agreements Policy Letter (GCAPL) #20-02 dated 04 February 2020. 2. There is not a risk for interest liability to the State. The basis and thresholds for determining if a program is subject to interest payments is defined in Federal Code 31 CFR Part 205 and Treasury Financial Manual (TFM) 4A-2000, “Overall Disbursing Rules for All Federal Agencies.” In addition, the Cash Management Improvement Act Agreement (CIMA) between The State of South Carolina and The Secretary of the Treasury, United States Department of the Treasury, dated 6/30/2025, does not list the Agency’s Catalogue of Federal Domestic Assistance (CFDA) 12.401 as one of the State’s programs that meets or exceeds the State’s threshold for major Federal assistance programs. 3. The Cash Management testing used a one-to-one analysis based on monthly cash advance requests and monthly expenditures during the same time period. However, the testing, based on NGB Policy 5-1, should be from the date of receipt to the date of disbursement. 4. Lastly, the State of South Carolina’s Department of Administration does not allow submissions for Capital Projects (projects over $250,000) without the funding in possession of the requesting Agency. In addition, neither the Legislative Joint Bond Review Committee (JBRC) nor the State Fiscal Accountability Authority (SFAA) will approve a Capital Project without the Agency having the required funds on-hand. The average Readiness Center Revitalization (Capital Project) can take 2-3 years to complete, and the total funds have to be on-hand to receive approval for the start of the projects. This requires Cooperative Agreement 1001 to advance funding for projects months ahead of the execution of any Purchase Orders. Corrective Action: The Agency will continue to strive to minimize the time elapsed between transfer of funds from the United States Treasury and their disbursement by the State in accordance with the annual Request for Advance Payment Method Authorization signed between the State/Agency and the United States Property and Fiscal Officer (USPFO). Anticipated Completion Date: Current Name of the contact person responsible for corrective action: Anita Ballington at 803-299-4294

View Audit 394274

Finding 1182850 (2025-001)

Material Weakness 2025

Research for Action, Inc.

PA

Internal Control / Segregation of Duties Cash Management

During our testing of cash management procedures, we noted that the Organization did not maintain documentation evidencing review or approval of federal fund drawdowns. The drawdown files tested did not include evidence demonstrating that an authorized individual reviewed and approved the request pr...

During our testing of cash management procedures, we noted that the Organization did not maintain documentation evidencing review or approval of federal fund drawdowns. The drawdown files tested did not include evidence demonstrating that an authorized individual reviewed and approved the request prior to submission. Recommendation: We recommend that the Organization establish and implement a formalized approval process for all federal fund drawdowns. This process should include documented review and approval by an authorized individual prior to the submission of each draw request. The Organization should also ensure adequate staffing and clear assignment of responsibilities within the finance department to maintain proper segregation of duties and consistent oversight. Implementing these procedures will strengthen internal controls, reduce the risk of inaccuracies or unauthorized draws, and promote full compliance with federal cash management requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will implement an approval system. Name(s) of the contact person(s) responsible for corrective action: Myrteny Metzger, Comptroller and Cyra Copeland, Senior Director of Finance Planned completion date for corrective action plan: the planned corrective action will be completed by February 2026.

View Audit 394260

Corrective Action Plans

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