Corrective Action Plans

Finding 571890 (2025-001)

Significant Deficiency 2025

Pagedale Rhf Housing, Inc. Dba Mount Beulah Terrace 085-Ee-090

CA

Cash Management HUD Housing Programs Questioned Costs

Statement of condition 2025-001: During the year ended March 31, 2025, management submitted a 9250 to withdraw funds from the reserve for replacements fund that included the same invoice as a previously approved 9250. The reserve for replacements account was not reimbursed for the duplicate withdraw...

Statement of condition 2025-001: During the year ended March 31, 2025, management submitted a 9250 to withdraw funds from the reserve for replacements fund that included the same invoice as a previously approved 9250. The reserve for replacements account was not reimbursed for the duplicate withdrawal. Comments on the finding and each recommendation: Management should transfer $14,376 from the operating cash account to the reserve for replacements account. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. On May 29, 2025, management transferred $14,376 from the operating cash account to the reserve for replacements account.

View Audit 362933 Questioned Costs: $1

Finding 570905 (2025-001)

None 2025

Cedar Hill Housing Corporation

MO

HUD Housing Programs Special Tests & Provisions Cash Management

A policy will be put in place that only funds that approved by HUD will be withdrawn from the replacement reserve account. The policy will be in place and effective by May 31, 2026.

View Audit 361877

Finding 570904 (2025-001)

None 2025

Magnolia Heights Housing Corporation

MO

HUD Housing Programs Special Tests & Provisions Cash Management

A policy will be put in place that only funds that approved by HUD will be withdrawn from the replacement reserve account. The policy will be in place and effective by May 31, 2026.

View Audit 361876

Finding 562236 (2025-001)

Significant Deficiency 2025

Desert Willow Apartments

CA

HUD Housing Programs Cash Management

2025-001 Reportable Condition — Compliance: Condition: The Organization did not receive HUD authorization for three withdrawals from the Residual Receipts account totaling $18,354 during the year. Action taken: $5,000 has been returned to the Residual Receipts account. Contact person: Nancy Jordan C...

2025-001 Reportable Condition — Compliance: Condition: The Organization did not receive HUD authorization for three withdrawals from the Residual Receipts account totaling $18,354 during the year. Action taken: $5,000 has been returned to the Residual Receipts account. Contact person: Nancy Jordan Completion date: May 15, 2025 Explanation of Disagreement: Not applicable Repeat finding: No

View Audit 357832

Finding 1241791 (2024-010)

Material Weakness 2024

College of the Marshall Islands

MH

Cash Management Student Financial Aid

The College acknowledges the repeated finding and recognizes the need to strengthen internal controls over Pell Grant cash management and documentation of drawdowns under the Heightened Cash Monitoring payment method. During FY2025–FY2026, the College continued strengthening its cash management proc...

The College acknowledges the repeated finding and recognizes the need to strengthen internal controls over Pell Grant cash management and documentation of drawdowns under the Heightened Cash Monitoring payment method. During FY2025–FY2026, the College continued strengthening its cash management procedures through the implementation of a formal drawdown memorandum process, requiring supporting documentation, justification, and appropriate review and approval before funds are requested from the U.S. Department of Education. The College is also working to improve coordination between the Financial Aid Office and Business Office to ensure that drawdown requests are properly supported by actual student disbursements and reconciled with the Common Origination and Disbursement system and accounting records. Additionally, the College continues to strengthen its documentation and record retention procedures to ensure that detailed supporting records are maintained and readily available for audit purposes. These ongoing corrective measures are intended to improve accountability, ensure compliance with federal cash management requirements, and prevent recurrence of similar findings in future audits.

View Audit 415778

Finding 1241236 (2024-003)

Material Weakness 2024

Black Womens Health Imperative

DC

Cash Management Internal Control / Segregation of Duties Significant Deficiency § 200.303 § 200.305

Audit Finding Number 2024-003 Audit Finding Title Cash Management Planned Corrective Action Effective September 2026, each drawdown will be prepared by Kim Cockerham, Sr. Director of Finance and Accounting and then reviewed by a separate employee before submission. Preparation and review are time st...

Audit Finding Number 2024-003 Audit Finding Title Cash Management Planned Corrective Action Effective September 2026, each drawdown will be prepared by Kim Cockerham, Sr. Director of Finance and Accounting and then reviewed by a separate employee before submission. Preparation and review are time stamped and documented in the CDC payment system. Name(s) and title(s) of contact person(s) responsible for corrective action Kim Cockerham, Sr. Director of Finance and Accounting

View Audit 415344

Finding 1241149 (2024-003)

Material Weakness 2024

Building Better Communities Foundation

CA

Subrecipient Monitoring Cash Management

10. Centralized monitoring matrix. Maintain a center-by-center schedule showing review due dates, approved meal service times, visits performed and whether the required meal observation has been completed for the applicable review period. 11. Mandatory completion review. Require the Senior Monitor t...

10. Centralized monitoring matrix. Maintain a center-by-center schedule showing review due dates, approved meal service times, visits performed and whether the required meal observation has been completed for the applicable review period. 11. Mandatory completion review. Require the Senior Monitor to verify meal observation fields and other required elements before marking a report complete; document deficiencies and follow-up. 12. Supervisory accountability. Assign the Senior Monitor responsibility for staff scheduling, report receipt, completeness checks, central filing, training needs and escalation to senior administration. 13. Staff training and coverage. Provide written training and cross-coverage procedures so absences or personnel transitions do not leave monitoring requirements unassigned. 14. Retrospective scope assessment. Examine the 2024 center-by-center monitoring records for additional omitted meal observations or documentation gaps; document the population, exceptions, follow-up and any necessary claim impact assessment. Do not presume questioned costs absent a supported determination. 15. Operating-effectiveness review. Perform and retain periodic supervisory spot-checks of monitoring records and reconcile the monitoring matrix against filed reports and outstanding corrective actions.

View Audit 415212

Finding 1241148 (2024-002)

Material Weakness 2024

Building Better Communities Foundation

CA

Cash Management

4. Written cash procedures. Document receipt, center allocation, review, payment approval, reconciliation, record retention, and exception handling, with the five-working-day requirement expressly identified. 5. Receipt-to-payment register. Record each State deposit date, amount, claim period, spons...

4. Written cash procedures. Document receipt, center allocation, review, payment approval, reconciliation, record retention, and exception handling, with the five-working-day requirement expressly identified. 5. Receipt-to-payment register. Record each State deposit date, amount, claim period, sponsored center allocation, authorization date, payment date and elapsed working days; flag payments approaching the deadline. 6. Segregated review and reconciliation. Require documented supervisory approval of allocations and reconcile State receipts, center payments, bank activity and general ledger postings monthly. 7. Exception escalation. Escalate any unissued payment approaching the deadline to the Executive Director; record reason, disposition and corrective measures for each late item. 8. Operating-effectiveness test. Review a sample of subsequent reimbursement cycles and calculate actual receipt-to-disbursement intervals; retain the register, bank evidence and sign-offs. Report unresolved exceptions rather than claiming the deficiency is cured without testing. 9. Staff instruction. Train fiscal personnel on the written procedure and document attendance and acknowledgments.

View Audit 415212

Finding 1240848 (2024-013)

Material Weakness 2024

State of Kosrae

FM

Cash Management § 200.302 § 200.305

Pohnpei has agreed to the findings and is committed to implementing the recommendations. Ongoing Director of Treasury and Administration Sihna N. Lawrence sihna.lawrence@pohnpeidota.fm

View Audit 415176

Finding 1240842 (2024-008)

Material Weakness 2024

State of Kosrae

FM

Cash Management Subrecipient Monitoring

Pohnpei has agreed to the findings and is committed to implementing the recommendations. Ongoing Director of Treasury and Administration Sihna N. Lawrence sihna.lawrence@pohnpeidota.fm

View Audit 415176

Finding 1240430 (2024-004)

Material Weakness 2024

Cornerstone Whole Healthcare Organization, Inc.

ID

Cash Management

Corrective action taken Effective September 1, 2026, C-WHO adopted a Cash Drawdown Policy. Under the policy: 1. Each advance draw is supported by a Federal Cash Draw Worksheet showing the award, the period covered, federal cash on hand from prior draws, allowable expenditures incurred since the last...

Corrective action taken Effective September 1, 2026, C-WHO adopted a Cash Drawdown Policy. Under the policy: 1. Each advance draw is supported by a Federal Cash Draw Worksheet showing the award, the period covered, federal cash on hand from prior draws, allowable expenditures incurred since the last draw, projected expenditures for the next 30 days, and the calculation of the requested amount. 2. The requested amount may not exceed the projected 30-day need less federal cash on hand. 3. The worksheet is signed and dated by the preparer and approved by a separate authorized individual before the draw is submitted in the Payment Management System. 4. Finance maintains a federal cash reconciliation for each award showing cash received, allowable expenditures paid, and federal cash remaining, reviewed monthly. 5. The worksheet, approval, Payment Management System confirmation, and supporting expenditure detail are retained in the grant file.

View Audit 414932

Finding 1239820 (2024-007)

Material Weakness 2024

VILLAGE OF MENDON

MI

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

Finding 2024-007 – Lack of Separate Bank Account for Restricted Federal Cash Contact Person: Gary Kloosterman, Village Manager Planned Corrective Action: The Village will establish a separate bank account for restricted federal loan proceeds or implement a general ledger mechanism to ensure proper t...

Finding 2024-007 – Lack of Separate Bank Account for Restricted Federal Cash Contact Person: Gary Kloosterman, Village Manager Planned Corrective Action: The Village will establish a separate bank account for restricted federal loan proceeds or implement a general ledger mechanism to ensure proper tracking and reconciliation. Anticipated Completion Date: March 31, 2026

View Audit 414503

Finding 1239794 (2024-002)

Material Weakness 2024

Line Mountain School District

PA

Subrecipient Monitoring Cash Management Reporting § 200.302 § 200.303

The District Office will work directly with the Federal Programs Coordinator to ensure more timely submissions of Reconciliation of Cash on Hand Quarterly Reports and Final Expenditure Reports are prepared accurately and submitted timely in accordance with grant requirements. The Business Manager wi...

The District Office will work directly with the Federal Programs Coordinator to ensure more timely submissions of Reconciliation of Cash on Hand Quarterly Reports and Final Expenditure Reports are prepared accurately and submitted timely in accordance with grant requirements. The Business Manager will do this by creating reminders on the Business Manager’s calendar that include due dates each quarter and reminding the Federal Programs Coordinator when their respective reports are due. The District will implement and form a review and monitoring process and provide any necessary training to staff responsible for grant reporting to ensure ongoing compliance.

View Audit 414483

Finding 1239788 (2024-003)

Material Weakness 2024

Line Mountain School District

PA

Cash Management School Nutrition Programs

The District Office has established a separate bank account for its Cafeteria Fund in fiscal year 25. The District is also in the process of implementing procedures to ensure cafeteria funds are used exclusively for allowable food service purposes and are properly monitored and reconciled.

View Audit 414483

Finding 1238471 (2024-005)

Material Weakness 2024

Peoria Housing Authority

IL

Special Tests & Provisions Procurement, Suspension & Debarment Cash Management § 200.302 § 200.303

• The Compliance Director will be responsible for maintaining updated records and ensuring accessibility during audits. • Implement checklists for each compliance area (reporting, Eligibility, Procurement) to confirm all documents are gathered before deadlines. • Schedule quarterly internal mini aud...

• The Compliance Director will be responsible for maintaining updated records and ensuring accessibility during audits. • Implement checklists for each compliance area (reporting, Eligibility, Procurement) to confirm all documents are gathered before deadlines. • Schedule quarterly internal mini audits to test readiness and correct gaps before the annual audit. • Maintain written standard operating procedures for how documentation should be completed, stored and updated. • Assign responsibility for each compliance area (waiting lists, who oversees procurement, who handles reporting) • Implement the use of audit readiness templates that outline exactly what needs to be prepared for each compliance requirement. Name of Responsible Person: Housing Director, Compliance Director Projected Completion Date: By the end of the current fiscal year.

View Audit 413338

Finding 1238364 (2024-001)

Material Weakness 2024

King County Public Hospital District #2 Dba Evergreen Healthcare

WA

Allowable Costs / Cost Principles Cash Management Period of Performance § 200.303 § 200.403

AUDIT FINDINGS 2024-001: In one of 25 selections for testwork over period of performance, expenditures related to contract labor were submitted for reimbursement to the Federal Emergency Management Agency (FEMA) that were outside of the project period. Further, the review performed over expenditures...

AUDIT FINDINGS 2024-001: In one of 25 selections for testwork over period of performance, expenditures related to contract labor were submitted for reimbursement to the Federal Emergency Management Agency (FEMA) that were outside of the project period. Further, the review performed over expenditures was not completed appropriately to identify this error, this is an instance of the District’s internal control not operating as designed. Name of Contact Person: Daria Heimerman, Director of Financial Reporting, dtheimerman@evergreenhealthcare.org Corrective Action Planned: Assess process and controls for improvements to identify expenditures incurred outside of the designated project period. Anticipated Completion Date: August 2025 Statement of Concurrence or Nonconcurrence: Management concurs with audit finding 2024-001.

View Audit 413201

Finding 1238073 (2024-004)

Material Weakness 2024

Lone Pine Paiute- Shoshone Reservation

CA

Cash Management Allowable Costs / Cost Principles § 200.303 § 200.305

Person responsible for corrective action plan: Stacey Mike, Interim Tribal Chair Marjianne Yonge, Tribal Treasurer PO Box 747 Lone Pine, CA 93545 (760) 876-1035 Condition: During testing, we noted the following: 93.445 • For 2 of 2 samples, we were not provided documentation to verify that the expen...

Person responsible for corrective action plan: Stacey Mike, Interim Tribal Chair Marjianne Yonge, Tribal Treasurer PO Box 747 Lone Pine, CA 93545 (760) 876-1035 Condition: During testing, we noted the following: 93.445 • For 2 of 2 samples, we were not provided documentation to verify that the expenditures were incurred prior to the date of the reimbursement request. • For 2 of 2 samples, there was no documentation of review and approval of the reimbursement requests. Corrective Action: Review and authorization procedures will be implemented for reimbursement requests requiring an authorizing signature prior to processing. This authorization will ensure the expenditures have been validly and correctly incurred and are eligible for reimbursement. Anticipated date of completion: November 30, 2026.

View Audit 412894

Finding 1237957 (2024-001)

Material Weakness 2024

Georgia Association of Conservation Districts, Inc.

GA

Internal Control / Segregation of Duties Cash Management Reporting

2020-01: Segregation of Duties Name of contact person: Katie Sponberger, Executive Director Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compens...

2020-01: Segregation of Duties Name of contact person: Katie Sponberger, Executive Director Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. The costs of segregating certain duties exceeds the benefit and therefore, nonfinancial employees will be trained to provide some assistance in these areas. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 412741

Finding 1237566 (2024-014)

Material Weakness 2024

Housing Authority of the City of Daytona Beach, Florida

FL

Cash Management HUD Housing Programs Significant Deficiency

Use of Excess Cash Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority should also implement a year-end review process requiring management to document that each AMP has sufficient excess cash after meeting all reasonable operating needs befo...

Use of Excess Cash Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority should also implement a year-end review process requiring management to document that each AMP has sufficient excess cash after meeting all reasonable operating needs before an asset management fee is charged or paid. Any unpaid or accrued asset management fees should also be reviewed and adjusted when the applicable AMP does not have sufficient excess cash. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In April 2025, the HA hired the financial consulting firm of Kubas Keller and Associates. They have vast experience with HA’s all around the country and will work with staff and possibly a new CFO to ensure that all program expenditures are recorded and allocated in an appropriate manner based on actual work performed. Name(s) of the contact person(s) responsible for corrective action: Tony Palmer, CPA Kubas Keller and Associates Planned completion date for corrective action plan: June 2025 If the U.S Department of Housing and Urban Development has questions regarding this plan, please call Charles Woodyard, CEO at 386-253-5653

View Audit 412496

Finding 1237542 (2024-004)

Material Weakness 2024

Housing Authority of the City of Daytona Beach, Florida

FL

HUD Housing Programs Allowable Costs / Cost Principles Cash Management § 200.302 § 200.303 § 200.405

Interfund Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend management should create processes to track interfunds and transfers as well as designate an individual to review and approve these ...

Interfund Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend management should create processes to track interfunds and transfers as well as designate an individual to review and approve these transactions. Additionally, the Authority should begin the process of reimbursing the respective programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In April 2025, the HA hired the financial consulting firm of Kubas Keller and Associates. They have vast experience with HA’s all around the country and will work with staff and possibly a new CFO to ensure if interfunds and transfers are properly tracked and eliminated on the financials. This includes reviewing past transactions and correcting them in FY 2026. Name(s) of the contact person(s) responsible for corrective action: Tony Palmer, CPA Kubas Keller and Associates Planned completion date for corrective action plan: June 2026.

View Audit 412496

Finding 1236277 (2024-005)

Material Weakness 2024

Greenfield Exempted Village School District

OH

Matching / Level of Effort / Earmarking Subrecipient Monitoring Cash Management

The district will work with legal counsel to ensure proper contractual language pertaining to the Davis-Bacon Act is included in contracts using federal funding. Prior to payment to contractors, prevailing wage reports will be required to be submitted to the district to ensure compliance with federa...

The district will work with legal counsel to ensure proper contractual language pertaining to the Davis-Bacon Act is included in contracts using federal funding. Prior to payment to contractors, prevailing wage reports will be required to be submitted to the district to ensure compliance with federal program requirements per 29 CFR 5.5.

View Audit 411895

Finding 1236118 (2024-001)

Material Weakness 2024

Global Foundation for Ocean Exploration

CT

Cash Management

: Controls should be in place to prevent excess drawdowns from grants.

View Audit 411750

Finding 1235862 (2024-003)

Material Weakness 2024

CITY OF ROSHOLT

SD

Cash Management

The Town will develop internal controls sufficient to ensure that compliance with future Single Audit report filing deadlines are met.

View Audit 411493

Finding 1235710 (2024-006)

Material Weakness 2024

Isanti County

MN

Allowable Costs / Cost Principles Cash Management Material Weakness

Special Provisions Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material We...

Special Provisions Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document the review of all the LCTS reports submitted by each collaborative member each quarter for accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure there are proper financial procedures and controls in place to properly document the review of all required reports for the program. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December 31, 2026

View Audit 411411

Finding 1230113 (2024-059)

Material Weakness 2024

State of Nevada

NV

Matching / Level of Effort / Earmarking Cash Management Material Weakness

Audit Finding 2024-059 Finding: US Department of the Treasury (Treasury) regulations at 31 CFR Part 205 implement the Cash Management Improvement Act of 1990 (CMIA), as amended (Pub. L. No. 101-453; 31 USC 6501 et seq.). Subpart A of those regulations requires state recipients to enter into Treasury...

Audit Finding 2024-059 Finding: US Department of the Treasury (Treasury) regulations at 31 CFR Part 205 implement the Cash Management Improvement Act of 1990 (CMIA), as amended (Pub. L. No. 101-453; 31 USC 6501 et seq.). Subpart A of those regulations requires state recipients to enter into Treasury-State Agreements that prescribe specific methods of drawing down federal funds (funding techniques) for federal programs listed in the Assistance Listing (Catalog of Federal Domestic Assistance) that meet the funding threshold for a major federal assistance program under the CMIA. The major federal assistance program threshold for the State of Nevada’s 2024 Treasury-State Agreement was $60,000,000 in accordance with 31 CFR Part 205.5, which was determined based on the State’s Single Audit for the year ended June 30, 2021. Major federal assistance programs were not included in the State of Nevada’s Treasury- State Agreement as required. The State of Nevada Controller’s Office (SCO) did not have adequate internal controls to ensure major federal assistance programs were completely identified. Two assistance listing programs were not subject to the specific methods of drawing down federal funds that would have been negotiated within the Treasury-State Agreement. No sampling was used. We reviewed the expenditures by assistance listing on the State of Nevada’s Schedule of Expenditures of Federal Awards for the year ended June 30, 2021. We noted Special Education Grants to States, 84.027, and the Child Care and Development Block Grant, 93.575, both exceeded $60,000,000 and were not included. In addition, there was no documentation available to support whether these programs met any allowable exclusions or exemptions. Recommendation: We recommend SCO enhance internal controls to ensure major federal assistance programs are completely identified. Agency Response Does the Agency Agree with Finding: Yes Additional Comments: None Corrective Action Taken or to be Taken Action: The State Controller’s Office (SCO) will enhance internal controls to ensure major federal assistance programs are completely identified. Date of Completion or Estimated Completion: Estimated completion August 2026 Department or Agency Responsible for Corrective Action Plan Agency: Controller’s Office Contact: Micheala Woodburn, Senior Accountant (ACFR), Fiscal Operations 101 N. Carson Street, Suite 5 Carson City, NV 89701 775-684-5615 mwoodburn@sco.nv.gov

View Audit 411357

Corrective Action Plans

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