Corrective Action Plans

Finding 1229270 (2025-003)

Material Weakness 2025

CO

HUD Housing Programs Subrecipient Monitoring Cash Management

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

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

View Audit 410749

Finding 1229269 (2025-002)

Material Weakness 2025

Project Support Housing II

CO

HUD Housing Programs Internal Control / Segregation of Duties Cash Management

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

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

View Audit 410749

Finding 1229267 (2025-001)

Material Weakness 2025

Housing Authority of the City of Athens, Alabama

AL

Cash Management HUD Housing Programs Material Weakness

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

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

View Audit 410746

Finding 1229248 (2025-008)

Material Weakness 2025

Urshan College

MO

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

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

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

View Audit 410734

Finding 1229223 (2025-002)

Material Weakness 2025

Addiction Services Council

OH

Allowable Costs / Cost Principles Cash Management Significant Deficiency

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

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

View Audit 410726

Finding 1229177 (2025-001)

Material Weakness 2025

The Bedford Stuyvesant Family Health Center, Inc.

NY

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.302

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

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

View Audit 410683

Finding 1229120 (2025-002)

Material Weakness 2025

Greene Metropolitan Housing Authority

OH

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

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

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

View Audit 410616

Finding 1229085 (2025-002)

Material Weakness 2025

Fiesta House Senior Housing, Inc.

CA

Subrecipient Monitoring Cash Management HUD Housing Programs

Name of auditee: Fiesta House Senior Housing, Inc. HUD auditee identification number: 122-EE166-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Ana Ponce Position: President Telephone number: 323-231-1104 Curren...

Name of auditee: Fiesta House Senior Housing, Inc. HUD auditee identification number: 122-EE166-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Ana Ponce Position: President Telephone number: 323-231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-002: During the year ended December 31, 2025, management submitted a 9250 to withdraw funds from the reserve for replacements fund that included 16 of the same invoices as a previously approved 9250. The reserve for replacements account was not reimbursed for the duplicate withdrawal. In addition, management submitted and received approval for two proposals for work that was not completed. Comments on the Finding and Each Recommendation: Management should transfer $62,856 from the operating account to the reserve for replacements account. Action(s) taken or planned on the finding: Management will deposit the $62,856 during 2026.

View Audit 410549

Finding 1229084 (2025-001)

Material Weakness 2025

Fiesta House Senior Housing, Inc.

CA

Cash Management HUD Housing Programs Subrecipient Monitoring

Name of auditee: Fiesta House Senior Housing, Inc. HUD auditee identification number: 122-EE166-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Ana Ponce Position: President Telephone number: 323-231-1104 Curren...

Name of auditee: Fiesta House Senior Housing, Inc. HUD auditee identification number: 122-EE166-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Ana Ponce Position: President Telephone number: 323-231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: The Corporation paid entity costs of $6,950 from operating cash. Comments on the Finding and Each Recommendation: The Sponsor should reimburse the Corporation $6,950 or management should request HUD approval for funds to be reimbursed from the reserve for replacement. Action(s) taken or planned on the finding: Management plans to request reimbursement from the reserve for replacement in 2026.

View Audit 410549

Finding 1229013 (2025-004)

Material Weakness 2025

Talbot County Board of Education

GA

Subrecipient Monitoring Cash Management § 200.302 § 200.303

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

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

View Audit 410487

Finding 1229012 (2025-003)

Material Weakness 2025

Talbot County Board of Education

GA

Cash Management Subrecipient Monitoring § 200.302 § 200.303 § 200.305

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

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

View Audit 410487

Finding 1228736 (2025-001)

Material Weakness 2025

Arenac County

MI

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

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

View Audit 410406

Finding 1228672 (2025-005)

Material Weakness 2025

Mending Hearts, Inc.

TN

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

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

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

View Audit 410338

Finding 1228663 (2025-003)

Material Weakness 2025

Mid-America Arts Alliance

MO

Allowable Costs / Cost Principles Cash Management HUD Housing Programs

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

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

View Audit 410317

Finding 1228662 (2025-002)

Material Weakness 2025

Mid-America Arts Alliance

MO

Allowable Costs / Cost Principles Cash Management HUD Housing Programs

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

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

View Audit 410317

Finding 1228658 (2025-007)

Material Weakness 2025

City of Aurora, Colorado

CO

Cash Management HUD Housing Programs Reporting § 200.328 § 200.329

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

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

View Audit 410304

Finding 1228654 (2025-003)

Material Weakness 2025

Beltrami County

MN

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

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

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

View Audit 410296

Finding 1228637 (2025-001)

Material Weakness 2025

Housing Authority of the City of Dothan

AL

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

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

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

View Audit 410273

Finding 1228634 (2025-001)

Material Weakness 2025

WABASH TELEPHONE COOPERATIVE INC

IL

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management § 200.302 § 200.303

Finding 2025-001 Allowable Cost Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need...

Finding 2025-001 Allowable Cost Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need for a formalized, written policy governing expenditures charged to federal awards. To address identified significant deficiency, Wabash implemented a comprehensive written policy as of June 30, 2026. This policy will formalized the coding, review, and reporting processes for all federal expenditures. Key improvements included: • Enhanced Internal Controls: We established a clear segregation of duties to ensure oversight and accuracy. • Timely Reporting: We refined our payroll allocation process. Previously, payroll expenditures were withheld pending budget verification, which occasionally led to reporting delays. New controls will ensure that all expenditures, including payroll, are reported within the required quarterly timeframes. • Monitoring: The Controller will oversee the development of these procedures and remain responsible for ongoing monitoring and compliance. These steps will ensure our financial practices meet federal standards and provide rigorous oversight of project funds. Contact person(s): Cheryl Gaither, Controller Justin Gephart, Chief Operating Officer

View Audit 410271

Finding 1228584 (2025-003)

Material Weakness 2025

Town of Boxford

MA

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

Audit Finding Reference: 2025-003 Document Policies and Procedures Over Federal Awards Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by a federal awarding agency. The Assistant Town Administrator/Finance Dir...

Audit Finding Reference: 2025-003 Document Policies and Procedures Over Federal Awards Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by a federal awarding agency. The Assistant Town Administrator/Finance Director will prepare a concise federal awards procedures addendum addressing allowable costs, employee travel, cash management, procurement, conflicts of interest, and subrecipient monitoring. The addendum will incorporate existing Town policies by reference where they already address a requirement and will identify the responsible finance and departmental roles. Following management review and approval, the addendum will be provided to employees who administer federal awards and retained with the Town’s financial policies. It will be updated when federal requirements or the Town’s federal grant activity materially change. Planned Implementation Date of Corrective Action: October 31, 2026 Person Responsible for Corrective Action: Assistant Town Administrator/Finance Director, with oversight by the Town Administrator

View Audit 410210

Finding 1228474 (2025-002)

Material Weakness 2025

Town of Paradise

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.309

Condition: The Town incurred and charged expenditures totaling $30,826 to a FEMA Public Assistance project after the approved period of performance ended on October 31, 2024. The Town submitted a formal request to extend the period of performance on September 8, 2025. As of March 19, 2026, FEMA had ...

Condition: The Town incurred and charged expenditures totaling $30,826 to a FEMA Public Assistance project after the approved period of performance ended on October 31, 2024. The Town submitted a formal request to extend the period of performance on September 8, 2025. As of March 19, 2026, FEMA had communicated that the extension request has been denied. However, FEMA reimbursed the Town for the expenditures incurred after October 31, 2024. As of the date of this audit report, FEMA has not indicated whether the reimbursement will ultimately be retained or subject to recovery. Corrective Action Plan Corrective Action Planned: The Town will implement a grant expenditure review checklist requiring pre-approval for any costs beyond the approved period; train all grant staff on compliance requirements; update internal controls. The Town will also document all correspondence whether that be by phone, email or written correspondence with FEMA when it comes to deadline extensions. The Town’s FEMA-funded recovery projects are complex, multi-year projects associated with rebuilding the community. Many projects have extended beyond their original completion dates due to factors including the pandemic, supply-chain and world trade impacts, weather, labor availability, construction timelines, and contract procurement requirements. In addition, frequent turnover among FEMA personnel assigned to the Town’s recovery projects has at times resulted in changes in points of contact, delays in responses, and extended processing times for approvals, determinations, and extension requests. These circumstances have contributed to the length and complexity of administering projects that already require significant coordination over multiple years. The Town has continued to work closely with FEMA throughout this process and has received approvals for extensions on recovery projects. In this instance, the expenditures identified in the finding occurred after the original October 31, 2024 period and were ultimately reimbursed by FEMA. Name(s) of Contact Person(s) Responsible for Corrective Action: Aimee Beleu, Finance Director Anticipated Completion Date: The corrective action will be implemented to take effect for the audit of the FY 2025-26 financial statements.

View Audit 410131

Finding 1228467 (2025-001)

Material Weakness 2025

Kpc Apartments, Phase II

MS

HUD Housing Programs Cash Management Significant Deficiency

CORRECTIVE ACTION PLAN NOVEMBER 30, 2025 U. S. Department of Housing and Urban Development K.P.C. Apartments, Phase II (the "Project") respectfully submits the following corrective action plan for the year ended November 30, 2025. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colon...

CORRECTIVE ACTION PLAN NOVEMBER 30, 2025 U. S. Department of Housing and Urban Development K.P.C. Apartments, Phase II (the "Project") respectfully submits the following corrective action plan for the year ended November 30, 2025. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended November 30, 2025 Audit Finding Reference: 2025-001 Planned Corrective Action Management will submit a request to HUD for authorization of the distribution of the residual receipt funds. Name of Contact Person: If the U. S. Department of Housing and Urban Development for audit has questions regarding this plan, please call Rick Greene at 601-714-8349. Sincerely, K.P.C. Apartments, Phase II By Inventive Property Management Company

View Audit 410130

Finding 1228419 (2025-005)

Material Weakness 2025

Glide Foundation

CA

Reporting Cash Management Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that, for certain reimbursement requests, documentation evidencing review and approval prior to submission was not retained. Management notes, however, that the underlying expenditures included in the reimbursement...

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that, for certain reimbursement requests, documentation evidencing review and approval prior to submission was not retained. Management notes, however, that the underlying expenditures included in the reimbursement requests were valid, properly recorded in the general ledger, and supported by appropriate accounting records. No questioned costs were identified, and the amounts requested for reimbursement were consistent with allowable program expenditures. Management believes the condition was limited to documentation of review rather than the absence of an actual review process. Reimbursement requests were prepared using underlying financial records and submitted based on incurred costs; however, evidence of supervisory review was not consistently retained during a period of staffing transition. Upon identification, management evaluated its cash management and drawdown processes and reinforced expectations related to documentation and retention of review and approval. Review and approval of reimbursement requests are now consistently evidenced through electronic or physical sign off, and supporting documentation is maintained in a centralized and accessible manner. In addition, management has reinforced alignment of drawdown activity with underlying accounting records to ensure consistency between reimbursement requests, financial reporting, and the general ledger. Management believes this condition represents a documentation gap during a defined period rather than a systemic breakdown in internal control over compliance. The underlying control activities—preparation of drawdowns based on recorded expenditures and supervisory oversight—were in place and functioning, and the enhancements implemented ensure consistent documentation and retention of those controls going forward. Management will continue to monitor these processes as part of ongoing financial operations to ensure compliance with applicable requirements, including 2 CFR Part 200. Management respectfully notes that this condition was limited to the retention of documentation evidencing review and approval and did not impact the allowability of costs, the accuracy of reimbursement requests, or compliance with program requirements. All expenditures were properly supported and recorded, and no questioned costs were identified.

View Audit 410100

Finding 1228416 (2025-004)

Material Weakness 2025

Glide Foundation

CA

Cash Management Reporting Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that documentation supporting the review and approval of a reimbursement request was not retained, and that drawdown activity during the period did not consistently align with the timing of incurred expenditures. M...

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that documentation supporting the review and approval of a reimbursement request was not retained, and that drawdown activity during the period did not consistently align with the timing of incurred expenditures. Management notes that this condition was identified during a period of staffing transition and resulted in a lapse in documentation and timeliness, rather than an absence of underlying financial controls. Management further notes that the expenditure underlying the reimbursement request were valid, properly recorded in the general ledger, and supported by appropriate accounting records. The condition was limited to documentation of review and the timing of drawdown activity, and no questioned costs were identified. Upon identification, management evaluated and reinforced its cash management and drawdown processes. Drawdown requests are now consistently prepared based on underlying accounting records and aligned with incurred expenditures. A formal review and approval step has been implemented and is now required prior to submission, with evidence of review retained electronically or physically for audit purposes. In addition, management has strengthened oversight of drawdown timing to better align reimbursements with the period in which costs are incurred, reducing the risk of delayed submissions and ensuring consistency with related financial reporting. Management believes this condition represents a lapse in execution and documentation during a defined period rather than a systemic breakdown in control design. Enhancements implemented have addressed the identified gaps and established a more consistent and well documented process for drawdown preparation, review, and submission in accordance with applicable requirements, including 2 CFR Part 200.

View Audit 410100

Finding 1228304 (2025-002)

Material Weakness 2025

Yazoo County School District

MS

Allowable Costs / Cost Principles Cash Management Material Weakness

2025-002 a. Name of Contact Person Responsible for Corrective Action: Dr. Terri Rhea, Superintendent b. Corrective Action Planned: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability, including compliance with state and fe...

2025-002 a. Name of Contact Person Responsible for Corrective Action: Dr. Terri Rhea, Superintendent b. Corrective Action Planned: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability, including compliance with state and federal grant requirements. c. Anticipated Completion Date: Immediately.

View Audit 410019

Corrective Action Plans

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