Corrective Action Plans

Finding 1165672 (2025-001)

Material Weakness 2025

Marshall Public Schools

MO

Cash Management School Nutrition Programs

Completion Date: June 30, 2026 Sincerely, Caleb Petet, Superintendent Marshall Public Schools

View Audit 376342

Finding 1165631 (2025-003)

Material Weakness 2025

School District of Auburndale

WI

Internal Control / Segregation of Duties Cash Management HUD Housing Programs

Child Nutrition Cluster – Assistance Listing No. 10.553 and 10.555 Recommendation: The auditors recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is different from the individual responsib...

Child Nutrition Cluster – Assistance Listing No. 10.553 and 10.555 Recommendation: The auditors recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is different from the individual responsible for preparing, even when there are gaps of coverage in preparer and reviewer positions, and that the review and approval happens prior to submitting the reports to the granting agency. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District acknowledges the oversight in the separation of duties for preparation and reviewing of reports. Corrective measures have been implemented to require assignment of a preparer different from the approver before finalizing the report. The procedures for submitting monthly claims have been updated to include submitting the report to the Finance Director for review and approval prior to submission. The Finance Director has added a monthly calendar reminder to review claim submission reports as part of the internal control process. Name(s) of the contact person(s) responsible for corrective action: Steven Van Wyhe Planned completion date for corrective action plan: Immediately

View Audit 376301

Finding 1165628 (2025-001)

Material Weakness 2025

Mesick Consolidated Schools

MI

Subrecipient Monitoring Cash Management Reporting

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim had an incorrect subtotal of meals disbursed which resulted in the meal claim being submitted for less than it shoul...

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim had an incorrect subtotal of meals disbursed which resulted in the meal claim being submitted for less than it should have been. There is a chance that the claim was done for the correct amount, but the supporting documentation shows that the District claimed less than they were allowed to. The District is going to ensure that all totals are subtotaled correctly in the future and double checked before the claim request is made. The persons responsible for the corrective action are Jack Ledford, the Food Service Director and Katrina Bontekoe, the Business Manager. The anticipated completion date of the corrective action plan is immediate. The plan for monitoring adherence is the Food Service Director will ensure that funds requested for meal reimbursements agree to total meals served.

View Audit 376300

Finding 1165624 (2025-005)

Material Weakness 2025

Columbus School District

WI

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

2025-005 – Medicaid – Allowable Activities and Costs The District is aware of the student’s receiving benefits need to have their billed services included in their IEPs. Responsible Officials – Beth Munson, Director of Business Services and Lisa Blochwitz, Director of Student Services Anticipated Co...

2025-005 – Medicaid – Allowable Activities and Costs The District is aware of the student’s receiving benefits need to have their billed services included in their IEPs. Responsible Officials – Beth Munson, Director of Business Services and Lisa Blochwitz, Director of Student Services Anticipated Completion Date – The District intends to work towards resolving this finding for the following year.

View Audit 376290

Finding 1165623 (2025-001)

Material Weakness 2025

Pathways Behavioral Services, Inc.

IA

Eligibility Subrecipient Monitoring Cash Management

Pathways executive management team will provide at least quarterly trainings on any changes in state of federal funding guidance and ensure implementation of this guidance is clear through regular contact with state and federal agencies.

View Audit 376282

Finding 1165469 (2025-004)

Material Weakness 2025

Clintondale Community Schools

MI

Cash Management Subrecipient Monitoring Material Weakness

see corrective action plan

View Audit 376196

Finding 1165467 (2025-002)

Material Weakness 2025

Clintondale Community Schools

MI

Cash Management Subrecipient Monitoring Material Weakness

see corrective action plan

View Audit 376196

Finding 1165456 (2025-001)

Material Weakness 2025

Aldine Independent School District

TX

Allowable Costs / Cost Principles Reporting Subrecipient Monitoring § 200.302 § 200.303

Corrective Action Plan for Federal Award Audit Finding 2025-001 Finding Title: Allowable Costs/Cost Principles – Improper expenditure recognition Federal Program: Title II, Part A, Teacher & Principal Training and Recruiting Assistant Listing Number: 84.367A Federal Agency Name: U.S. Department of E...

Corrective Action Plan for Federal Award Audit Finding 2025-001 Finding Title: Allowable Costs/Cost Principles – Improper expenditure recognition Federal Program: Title II, Part A, Teacher & Principal Training and Recruiting Assistant Listing Number: 84.367A Federal Agency Name: U.S. Department of Education Passed-Through Agency Name: Texas Department of Education Type of Finding: Significant Deficiency in Internal Control over Compliance Description of Corrective Action The District acknowledges the internal control system did not timely detect the improper recognition of expenditures in the incorrect fiscal period. It is important to emphasize that the expenditures identified were ultimately removed from the current year activity and were excluded from the year-end reimbursement request. The District commits to strengthening its year-end closing procedures and providing comprehensive training to address the noted deficiency in monitoring and review. The following actions will be taken: Mandatory Staff Training on Expenditure Cut-off and Accruals The District will develop and implement mandatory, targeted training for all personnel responsible for processing, recording, reconciling, and reviewing federal grant expenditures, with a specific focus on year-end cut-off procedures and proper expense recognition (accruals versus prepaid expenses). Implementation of Formal Grant Expenditure Cut-off Review Procedure A formalized closing procedure will be implemented for all federal awards, ensuring a mandatory, documented review of expenditures and payables near the fiscal year-end. Persons Responsible Timothy Momanyi, Chief Financial Officer Thania Gonzalez, Assistant Superintendent of Business and Finance Anticipated Completion Date The initial staff training will occur by May 31, 2026. The full implementation of the new procedures, with documented adherence by all responsible staff, will be complete by June 30, 2026, ensuring the new controls are fully operational before the close of the 2025-2026 fiscal year.

View Audit 376161

Finding 1165448 (2025-002)

Material Weakness 2025

Westmoreland County Community College

PA

Student Financial Aid Subrecipient Monitoring Cash Management

Finding 2025-002: Student Financial Aid Cluster – Reporting View of Responsible Officials and Planned Corrective Action: Root Cause Errors occurred because the data file transmitted from Anthology to COD did not consistently include the correct student information. It is not yet clear whether the is...

Finding 2025-002: Student Financial Aid Cluster – Reporting View of Responsible Officials and Planned Corrective Action: Root Cause Errors occurred because the data file transmitted from Anthology to COD did not consistently include the correct student information. It is not yet clear whether the issue arises from configuration problems, system design limitations, or both. Planned Corrective Action and Responsible Officials • Procedure review and update. The Financial Aid Office will review and revise procedures to ensure accurate, timely, and complete reporting to COD, including pre-submission and post-submission checks. • System-to-COD file analysis with Anthology. In partnership with Anthology's support and managed services teams, the College will: o o o Analyze how COD reporting files are created within Anthology. Identify why certain student data elements are not being transmitted correctly. Implement configuration changes or other system-level fixes to ensure accurate and complete reporting. • Enhanced manual validation until issues are resolved. If the file creation process is determined to be working "as designed" but still does not meet regulatory expectations, Financial Aid staff will perform manual review and correction of COD files prior to submission, and will monitor error and rejection reports from COD for follow-up. As with Finding 2025-001, the Vice President for Student Affairs and the Director of Financial Aid share responsibility for ensuring these corrective actions are implemented and sustained commencing on the date set forth above.

View Audit 376153

Finding 1165428 (2025-002)

Material Weakness 2025

Detroit Public Schools Community District

MI

Reporting Subrecipient Monitoring Cash Management § 200.303

Condition: The School District's controls did not prevent, or detect and correct in a timely manner, duplicative costs charged to the grant. Planned Corrective Action: The District annually processes thousands of supplemental payments for Home Visits. The audit found only 5 individual payments were ...

Condition: The School District's controls did not prevent, or detect and correct in a timely manner, duplicative costs charged to the grant. Planned Corrective Action: The District annually processes thousands of supplemental payments for Home Visits. The audit found only 5 individual payments were duplicated. The duplication was caused by human error during an internal staff transition within the Family and Community Engagement (FACE) department. This led the new manager to incorrectly report employee home visit logs twice. The FACE team will add internal controls during staff transitions to ensure documentation is not duplicated. Contact person responsible for corrective action: Jeremy Vidito, CFO Anticipated Completion Date: January 1, 2026

View Audit 376137

Finding 1165427 (2025-001)

Material Weakness 2025

Detroit Public Schools Community District

MI

Subrecipient Monitoring Cash Management HUD Housing Programs § 200.403

Condition: Costs charged to ALN 97.036 – Disaster Grants: Public Assistance were also charged to ALN 84.425 - Education Stabilization Fund (Elementary and Secondary School Emergency Relief - "ESSER") in prior fiscal years, indicating potential duplication of expenditures across federal programs. Pla...

Condition: Costs charged to ALN 97.036 – Disaster Grants: Public Assistance were also charged to ALN 84.425 - Education Stabilization Fund (Elementary and Secondary School Emergency Relief - "ESSER") in prior fiscal years, indicating potential duplication of expenditures across federal programs. Planned Corrective Action: The District applied for reimbursement of potentially eligible COVID expenditures in 2022. Per an April 5, 2022 FEMA memo “FEMA Continues Funding to Support the Safe Operations of Schools”, school districts could apply for reimbursement for ESSER funded expenditures, and then upon approval of application shift the funds to general fund. “Schools and school districts may utilize FEMA Public Assistance to receive full reimbursement for costs for the purposes above. Schools and districts may also use Elementary and Secondary School Emergency Relief (ESSER) funding from the U.S. Department of Education as a way to provide the up-front cost for the above health and safety measures, and later seek reimbursement through the FEMA Public Assistance process. For example, a local education agency (LEA) may use ESSER funds for costs that may ultimately be covered by FEMA; however, once it receives funds from FEMA for those costs, it must reimburse the ESSER grant account.” FEMA provided District award notification for COVID testing in December 2024 and January 2025, by this time the ESSER grant had closed on September 30, 2024 and the final expenditure reports for ESSER had been submitted to MDE in November 2024. Therefore the District could not complete the allowable general fund swaps. The District notified Michigan Department of Education and Michigan State Police of the timing issue. Upon request from MI State Police, the District provided documentation that available general funds were available to conduct the swaps if the FEMA approval had been received in a timely manner. Contact person responsible for corrective action: Jeremy Vidito, CFO Anticipated Completion Date: Requested documentation was submitted to Michigan State Police on November 7, 2025

View Audit 376137

Finding 1165424 (2025-002)

Material Weakness 2025

Berrien Regional Education Service Agency

MI

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.430

Condition: The fiscal year 2025 schedule of federal expenditures of federal awards (SEFA) that was initially provided to the auditors included payroll and fringe expenses that were incorrectly coded to the grant. Planned Corrective Action: The Agency agrees with the recommendations above and will im...

Condition: The fiscal year 2025 schedule of federal expenditures of federal awards (SEFA) that was initially provided to the auditors included payroll and fringe expenses that were incorrectly coded to the grant. Planned Corrective Action: The Agency agrees with the recommendations above and will implement a process to ensure that a reconciliation of the listing of grant eligible employees to those employees that were being coded to the Special Education Cluster in the general ledger is performed. Contact person responsible for corrective action: Emily Herbert, Director of Business and Finance Anticipated Completion Date: June 30, 2026

View Audit 376127

Finding 1165420 (2025-003)

Material Weakness 2025

Oblong Cusd #4

IL

Subrecipient Monitoring Cash Management Reporting

The Superintendent will thoroughly review and approve quarterly 'historical expenditure reports" and supporting documentation on a regular basis prior to electronic submissions. Reviews will encompass a search for adjustments and duplicate classifications, and a determination of reasonable vendors, ...

The Superintendent will thoroughly review and approve quarterly 'historical expenditure reports" and supporting documentation on a regular basis prior to electronic submissions. Reviews will encompass a search for adjustments and duplicate classifications, and a determination of reasonable vendors, expense descriptions, budget to actual comparisons, and dates. Corresponding documents will be manually signed and dated to indicate approval.

View Audit 376114

Finding 1165414 (2025-003)

Material Weakness 2025

Holden R-III School District

MO

Cash Management School Nutrition Programs

U.S. Department of Education Holden R-III respectfully submits the following Corrective Action Plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Mike Hough, Superintendent Holden R-III School District Independent Accounting Firm: Ger...

U.S. Department of Education Holden R-III respectfully submits the following Corrective Action Plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Mike Hough, Superintendent Holden R-III School District Independent Accounting Firm: Gerding, Korte & Chitwood, P.C., 723 Main Street, Boonville, MO 65233 Audit Period: Year ended June 30, 2025. The findings from the June 30, 2025, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Significant Deficiency 2025-003 Child Nutrition Cluster Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. Action Taken: Over the last five years, the school district's fund increased due to securing a contract at a low initial rate, while also benefiting from higher reimbursement rates and increased participation. This year, the district will once again go through the rebid process, and the estimated increase in costs is expected to range from 10% to 15%. This increase will likely surpass the amount the district receives in reimbursements, leading to a budget deficit. Additionally, student participation in the lunch program has declined over the years.

View Audit 376098

Finding 1165414 (2025-003)

Material Weakness 2025

Holden R-III School District

MO

Cash Management School Nutrition Programs

Action Taken: We are currently working with DESE to apply Food service expenses for the excess balance. We will monitor fund balances to ensure that they remain with the Child Nutrition compliance requirements.

View Audit 376098

Finding 1165414 (2025-003)

Material Weakness 2025

Holden R-III School District

MO

Cash Management School Nutrition Programs

Completion Date: June 30, 2026 Sincerely, Mike Hough, Superintendent Holden R-III School District

View Audit 376098

Finding 1165388 (2025-004)

Material Weakness 2025

Independent School District No. 593

MN

Internal Control / Segregation of Duties Cash Management HUD Housing Programs

Contact Person – Randal Bergquist, Superintendent Corrective Action Plan – The District will implement policies and procedures to ensure all monthly reimbursement reports are reviewed and approved before they are submitted. Completion Date – January 31, 2026

View Audit 375994

Finding 1165305 (2025-001)

Material Weakness 2025

Whitehall District Schools

MI

Allowable Costs / Cost Principles Reporting Cash Management § 200.430

Finding 2025-001: Head Start Cluster Semi-Annual Certification Procedures U.S. Department of Education Type of Finding: Control Pass-through agency: Michigan Department of Education Assistance Listing Number: 93.600 Award numbers: 05CH011882-04, 05CH011882-05 Award year ends: November 30, 2024 and N...

Finding 2025-001: Head Start Cluster Semi-Annual Certification Procedures U.S. Department of Education Type of Finding: Control Pass-through agency: Michigan Department of Education Assistance Listing Number: 93.600 Award numbers: 05CH011882-04, 05CH011882-05 Award year ends: November 30, 2024 and November 30, 2025 Recommendation: The School District should provide training to educate all employees working in federal programs of the requirements for verifying program employee listings are complete under Uniform Guidance, and the School District should require proper time-and-effort documentation to be timely reviewed and approved by the appropriate program supervisor. Action Taken: The Business Manager will provide semi-annual certification templates to all program directors. The Business Manager and program directors will review staff listings together to ensure all necessary employees are listed. Training on the certification process will be provided to all directors of federally funded programs. All federally funded salaried employees are required to complete certifications twice each year. The first submission is due to the Business Manager by January 15, and the second is due by July 15. The Business Manager will verify and maintain all certification records. Responsible Person and Anticipated Completion Date: Business Manager, November 2025 If the Michigan Department of Education has questions regarding this plan, please call CJ Van Wieren at (231) 893-1005.

View Audit 375856

Finding 1165302 (2025-001)

Material Weakness 2025

Housing Authority of Lake City

SC

HUD Housing Programs Allowable Costs / Cost Principles Cash Management

2025-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Colu...

2025-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. Person Responsible for Correction of Finding: Mark Fountain, Executive Director Projected Completion Date: June 30, 2026

View Audit 375853

Finding 1165301 (2025-001)

Material Weakness 2025

Sterling Community Unit School District No. 5

IL

Cash Management Reporting Internal Control / Segregation of Duties

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct categories of capital assets that were improperly recorded in prior years. Plan: The District will implement internal controls to properly record capital assets on a timely basis prior to aud...

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct categories of capital assets that were improperly recorded in prior years. Plan: The District will implement internal controls to properly record capital assets on a timely basis prior to audit fieldwork. Anticipated Date of Completion: June 30, 2026 Name of Contact Person: Matt Birdsley, Director of Finance/CSBO Management Response: The District will implemented controls to more accurately track construction in progress and record it correctly within our system to report accurately. In some cases, the contractors have submitted payment without accurately indicating the fiscal year the work was completed. For this, the district will assign the appropriate amount of the work to the appropriately fiscal year when receiving the pay applications.

View Audit 375850

Finding 1165257 (2025-005)

Material Weakness 2025

School District of Waupaca

WI

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

2025-005 – Medicaid – Allowable Activities and Costs - The District is aware of the student’s receiving benefits need to have their billed services included in their IEPs. Responsible Official – Austin Moore, Business Manager Anticipated Completion Date – The District will correct this in the subseq...

2025-005 – Medicaid – Allowable Activities and Costs - The District is aware of the student’s receiving benefits need to have their billed services included in their IEPs. Responsible Official – Austin Moore, Business Manager Anticipated Completion Date – The District will correct this in the subsequent fiscal year.

View Audit 375728

Finding 1165252 (2025-002)

Material Weakness 2025

School District of the City of Hazel Park

MI

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking

We are compiling award letters in our shared drive as they come in so we have all of the pieces needed to complete the schedule of expenditures. We are also enhancing our grant monitoring throughout the year to have a better handle on the grants and accurately report the activity.

View Audit 375717

Finding 1165247 (2025-002)

Material Weakness 2025

Portland Disciples Housing, Inc.

CA

Cash Management HUD Housing Programs

Management agrees with the finding. The residual receipts account deficiency was funded on November 27, 2024 in the amount of $58,162. Management will ensure that the residual receipts account is properly funded in the future.

View Audit 375696

Finding 1165245 (2025-002)

Material Weakness 2025

Northwestern Retirement Housing, Inc.

CA

Cash Management HUD Housing Programs

Management agrees with the finding. The residual receipts account deficiency was funded on November 15, 2024 in the amount of $4,556. Management will ensure that the residual receipts account is properly funded in the future.

View Audit 375695

Finding 1165233 (2025-003)

Material Weakness 2025

Porter-Leath

TN

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

2025-003: Inaccurate Eligibility Classification and System Entry Issue: Eligibility classifications in CACFP were entered incorrectly due to manual processes and inconsistent verification. In some cases, the eligibility category recorded in the system did not match the approved paper application. Do...

2025-003: Inaccurate Eligibility Classification and System Entry Issue: Eligibility classifications in CACFP were entered incorrectly due to manual processes and inconsistent verification. In some cases, the eligibility category recorded in the system did not match the approved paper application. Documentation of income verification and classification checks was incomplete or not retained. Corrective Actions: Porter-Leath will strengthen controls over eligibility determination by requiring a complete review of all eligibility documents before system entry. 1. Applications will first be checked by administrative or Family Services staff to verify household size, income documentation, and appropriate eligibility category. 2. Site Managers will review the classification for accuracy and ensure the approved determination is entered consistently into ChildPlus or ProCare. 3. A final review by the Preschool Coordinator will confirm that the eligibility classification on the application matches the classification stored in the system prior to claim submission. 4. A reconciliation step will be built into the monthly workflow so discrepancies between documentation and system data are identified and corrected promptly. Responsible Personnel: Family Services Liaisons, Site Administrative Staff, Site Managers, Preschool Coordinator, CACFP Coordinator Timeline: Revised procedures implemented within 15 days; staff training completed within 30 days. Monitoring: Periodic quarterly reviews of at least 25 percent of eligibility files will be conducted to confirm proper classification and system accuracy, with results reported to management.

View Audit 375620

Corrective Action Plans

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