Corrective Action Plans

Finding 1177617 (2025-003)

Material Weakness 2025

CT

HUD Housing Programs Eligibility

An ineligible resident was residing at the property. Recommendation: CLA recommends enforcing control procedures over resident eligibility. Explanation of disagreement with audit finding: Management identifies that the resident move-in was conducted by the prior management company. Action planned in...

An ineligible resident was residing at the property. Recommendation: CLA recommends enforcing control procedures over resident eligibility. Explanation of disagreement with audit finding: Management identifies that the resident move-in was conducted by the prior management company. Action planned in response to finding: During fiscal 2026, the management company will recommunicate their policies and ensure proper controls over eligibility are enforced. Name of the contact person responsible for corrective action: Sabine Cox, EHM Comptroller Planned completion date for corrective action plan: September 30, 2026

View Audit 391021

Finding 1177440 (2025-042)

Material Weakness 2025

State of Colorado

CO

Eligibility Reporting Internal Control / Segregation of Duties § 200.303

The Department will complete and communicate formalized IT procedures to staff and IT service providers for IT general control activities for MyUI+ by April 2026.

View Audit 390975

Finding 1177440 (2025-042)

Material Weakness 2025

State of Colorado

CO

Eligibility Reporting Internal Control / Segregation of Duties § 200.303

The Department will implement Part B of the confidential finding.

View Audit 390975

Finding 1177081 (2025-037)

Material Weakness 2025

State of Colorado

CO

Eligibility Material Weakness Internal Control / Segregation of Duties

The Department agrees to strengthen its internal controls over Medicaid eligibility to ensure compliance with federal and state regulations. Colorado will continue its approved Centers for Medicare and Medicaid mitigation plan to ensure that eligibility is determined on an individual rather than a h...

The Department agrees to strengthen its internal controls over Medicaid eligibility to ensure compliance with federal and state regulations. Colorado will continue its approved Centers for Medicare and Medicaid mitigation plan to ensure that eligibility is determined on an individual rather than a household basis. The Department will continue to conduct ex parte reviews to determine eligibility for all household members based on available information. Those members identified as eligible at ex parte will be approved, regardless if others in the household continue to need verifications or are no longer eligible. The Department is currently working on a permanent system change for CBMS that will only send out renewal forms for individuals not eligible through the ex parte process, with implementation by December 2026.

View Audit 390975

Finding 1177063 (2025-035)

Material Weakness 2025

State of Colorado

CO

Allowable Costs / Cost Principles Eligibility Subrecipient Monitoring

The Department agrees with the recommendation and will strengthen internal controls over Children’s Basic Health Plan eligibility determinations to ensure compliance with federal and state regulations. The Department will issue formal Management Decision Letters to the identified counties requiring ...

The Department agrees with the recommendation and will strengthen internal controls over Children’s Basic Health Plan eligibility determinations to ensure compliance with federal and state regulations. The Department will issue formal Management Decision Letters to the identified counties requiring Department-approved Corrective Action Plans. These plans will be required to address root causes related to income documentation, application of correct income thresholds, and compliance with CBHP eligibility requirements, including any necessary training or guidance for county and Medical Assistance site caseworkers. The Department will review, approve, and monitor corrective actions to ensure deficiencies are addressed.

View Audit 390975

Finding 1177061 (2025-034)

Material Weakness 2025

State of Colorado

CO

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility

The Department agrees with the recommendation and will strengthen internal controls over Medicaid eligibility determinations to ensure compliance with federal and state regulations. The Department will issue formal Management Decision Letters to the identified counties requiring the development and ...

The Department agrees with the recommendation and will strengthen internal controls over Medicaid eligibility determinations to ensure compliance with federal and state regulations. The Department will issue formal Management Decision Letters to the identified counties requiring the development and implementation of Department-approved Corrective Action Plans. These plans will be required to address root causes related to income and resource calculation, documentation of eligibility determinations, and household composition, including any necessary training or guidance for county and Medical Assistance site caseworkers. The Department will review, approve, and monitor corrective actions to ensure deficiencies are appropriately addressed.

View Audit 390975

Finding 1177037 (2025-001)

Material Weakness 2025

Baptist Memorial Health Care Corporation

TN

Reporting Cash Management Eligibility

Re: Finding 2025 001 – Significant Deficiency in Internal Control Over Financial Reporting – Preparation of the Schedule of Expenditures of Federal Awards (SEFA) The Corporation agrees with the recommendation. Management acknowledges that certain federal expenditures were not initially reported on t...

Re: Finding 2025 001 – Significant Deficiency in Internal Control Over Financial Reporting – Preparation of the Schedule of Expenditures of Federal Awards (SEFA) The Corporation agrees with the recommendation. Management acknowledges that certain federal expenditures were not initially reported on the Schedule of Expenditures of Federal Awards (SEFA) in the appropriate fiscal periods due to a misunderstanding of applicable Uniform Guidance requirements and reliance on prior audit treatment. Specifically, expenditures related to Federal Emergency Management Agency (FEMA) programs were not included on the SEFA until reimbursement was received, and certain per patient payments associated with federally funded research were not initially identified as SEFA reportable. To address this matter and strengthen internal controls over the preparation and review of the SEFA, management will implement the following corrective actions: • Future FEMA expenditures will be reported on the SEFA in the fiscal year in which the projects are obligated and eligible expenditures are incurred, regardless of the timing of reimbursement. • Per patient payments received in connection with federally funded research programs will be evaluated for SEFA reporting and included as required. • A formal Standard Operating Procedures related to the preparation of the SEFA will be developed and implemented to clarify reporting requirements for obligated expenditures, per patient grant activity, and other federal awards. • Review procedures will be enhanced to include confirmation by entity and corporate leadership that all federal awards and related expenditures have been identified, evaluated, and appropriately reported on the SEFA. • Management will evaluate opportunities to complete SEFA preparation and preliminary review earlier in the audit cycle to allow for timely identification and resolution of potential reporting issues. Management believes these actions will improve the accuracy and completeness of the SEFA and reduce the risk of similar issues in future reporting periods.

View Audit 390905

Finding 1177004 (2025-003)

Material Weakness 2025

Linton-Stockton School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties Eligibility § 200.303

FINDING 2025-003 Finding Subject: Child Nutrition Cluster - Eligibility Contact Person Responsible for Corrective Action: Katie Elliott Contact Phone Number and Email Address: 812-847-6020 ext. 1007 katieelliott@lssc.k12.in.us Views of Responsible Officials: We concur with the finding. Description o...

FINDING 2025-003 Finding Subject: Child Nutrition Cluster - Eligibility Contact Person Responsible for Corrective Action: Katie Elliott Contact Phone Number and Email Address: 812-847-6020 ext. 1007 katieelliott@lssc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Eligibility - Income guidelines will be entered by the Director of Food Services and reviewed by the Director of School Finance to ensure accuracy. Review by the Director of School Finance will be noted on the July monthly checklist completed by the Director of School Finance. Direct certification - The direct certification process will be completed on a weekly basis by the Director of Food Services and will be reviewed and signed off via email by the Director of School Finance. Review of Applications - The Food Service Management provider reviews and approves or denies online applications. The applications are printed monthly and maintained in the office of the Director of Food Service. The Director of Food Service will review a sample of applications each month to verify proper approvals and denials. The Director of Food Service will provide verified applications to the Director of School Finance for review. Anticipated Completion Date: This Corrective Action Plan will be put in effect February 2026.

View Audit 390850

Finding 1176993 (2025-001)

Material Weakness 2025

Plumas Corporation

CA

Procurement, Suspension & Debarment Eligibility

The Organization will develop a policy and procedures to ensure that it complies with the requirements of 2 CFR Part 180, Subpart C.

View Audit 390830

Finding 1176837 (2025-001)

Material Weakness 2025

San Joaquin Delta Community College District

CA

Student Financial Aid Subrecipient Monitoring Eligibility

Views of Responsible Officials and Corrective Action Plan We concur. The Financial Aid Office and IT have Implemented a “Just-In-Time” eligibility verification in MyDelta. Additional manual reconciliation before disbursement has also been implemented.

View Audit 390685

Finding 1176825 (2025-002)

Material Weakness 2025

Silver Creek School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties Eligibility § 200.303

FINDING 2025-002 Finding Subject: Subject: Child Nutrition Cluster - Eligibility Contact Person Responsible for Corrective Action: Josh Sinclair, Food Service Director and Allison Vanover, Corporation Treasurer. Contact Phone Number 812-246-3375 Email Address: jsinclair@scsc.school avanover@scsc.sch...

FINDING 2025-002 Finding Subject: Subject: Child Nutrition Cluster - Eligibility Contact Person Responsible for Corrective Action: Josh Sinclair, Food Service Director and Allison Vanover, Corporation Treasurer. Contact Phone Number 812-246-3375 Email Address: jsinclair@scsc.school avanover@scsc.school Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Food Service Director will collaborate with the IT Department to verify the accuracy of income parameters and Direct Certification eligibility data within Infinite Campus. A representative sample of student records will be tested to confirm that the uploaded information was processed correctly and aligns with supporting documentation. Any discrepancies identified will be corrected promptly, and procedures will be reinforced to ensure ongoing accuracy and compliance. Anticipated Completion Date: January 2026

View Audit 390679

Finding 1176718 (2025-002)

Material Weakness 2025

Pensdale Housing, Inc.

CA

Subrecipient Monitoring Eligibility HUD Housing Programs

Comments on the Finding and Each Recommendation The Property received a NSPIRE inspection dated August 1, 2024. The inspection resulted in a score of 59 (out of a possible 100). Scores below 60 are referred to the Departmental Enforcement Center. Management must maintain the Property in decent, safe...

Comments on the Finding and Each Recommendation The Property received a NSPIRE inspection dated August 1, 2024. The inspection resulted in a score of 59 (out of a possible 100). Scores below 60 are referred to the Departmental Enforcement Center. Management must maintain the Property in decent, safe, and sanitary condition and good repair. Management must respond to HUD in three days of receiving the inspection report and confirm all lifethreatening deficiencies have been corrected. Action(s) taken or planned on the finding Management and the Board of Directors concur with the finding and the auditor's recommendations. Management has responded to HUD in regard to this inspection report and on July 8, 2025 another inspection was conducted that resulted in a final score of 95 (out of a possible 100).

View Audit 390616

Finding 1176680 (2025-001)

Material Weakness 2025

La Casa De Felicidad Housing Development Fund Corporation

NY

HUD Housing Programs Eligibility

Management has addressed the issue by recertifying the tenant and does not expect late recertifications or income verification to occur again.

View Audit 390549

Finding 1176634 (2025-001)

Material Weakness 2025

University of Kentucky

KY

Eligibility HUD Housing Programs

On November 4, 2025, UK HealthCare (UKHC) Information Technology implemented a system configuration change within Epic related to the NFV Sliding Scale settings. This change restricts the application of Federal Poverty Level (FPL) discounts to accounts with a status of “Approved for Financial Assist...

On November 4, 2025, UK HealthCare (UKHC) Information Technology implemented a system configuration change within Epic related to the NFV Sliding Scale settings. This change restricts the application of Federal Poverty Level (FPL) discounts to accounts with a status of “Approved for Financial Assistance,” thereby preventing discounts from being applied to accounts that have not been formally approved. In addition, on December 8, 2025, a new status option— “Did Not Apply for FA”—was added to the status field within the FPL table in Epic. This option is to be selected when patients do not apply for financial assistance, ensuring that status fields are never left incomplete or blank. NFVCHC staff were notified of this update and instructed to consistently complete this step. Planned Process Improvements:NFVCH leadership will conduct a comprehensive review of the NFV and JB clinic policies and procedures related to Financial Assistance Program (FAP) eligibility determination and reevaluation. This review will ensure that: FAP documentation does not include overlapping coverage periods Effective and termination dates are properly validated Internal processes align with system requirements and safeguard against data inconsistencies Ongoing Monitoring / Sustainability Plan: To strengthen oversight and ensure longterm control effectiveness, UKHC Enterprise Revenue Cycle will incorporate into its monthly audit procedures the following reviews: A report identifying accounts with blank or incomplete status entries on the Federal Poverty Level table A review of overlapping FPL coverage dates Monitoring for patients who have both UK and NFV Charity Care, ensuring the correct NFV FPL table is applied for NFVCH accounts This continuous monitoring will ensure system controls operate as designed and that corrective actions remain effective over time. Responsible Party: Larry Quillen – Executive Director, NFVCH Anne Wray - ERC Revenue Assurance Director/UKHC Target Completion Date: Completed on November 4, 2025, with additional enhancements on December 9, 2025

View Audit 390491

Finding 1176600 (2025-001)

Material Weakness 2025

Triton Regional School District

MA

Eligibility School Nutrition Programs Significant Deficiency § 200.437

Corrective Action Plan Finding 2025-001 Condition: A journal entry was tested during the compliance audit that reclassified $50,000 of employee health costs to the school lunch fund that did not include any documentation of the costs charged to the school lunch fund and how they were allocated. Corr...

Corrective Action Plan Finding 2025-001 Condition: A journal entry was tested during the compliance audit that reclassified $50,000 of employee health costs to the school lunch fund that did not include any documentation of the costs charged to the school lunch fund and how they were allocated. Corrective Action Planned: Effective July 1, 2025, the District began to implement a structured and documented cost allocation process for employee healthcare expenses attributable to the Food Services Department. Beginning in FY26: • Charges will be processed monthly to ensure transparency, consistency, and proper budget tracking. Anticipated Completion Date: Ongoing Contact: Richard Poor, Director of Finance & Operations

View Audit 390416

Finding 1176593 (2025-002)

Material Weakness 2025

Sabin Group 1 Hud Project No. 101-Hh003-Np-Cmi-L8

CO

HUD Housing Programs Subrecipient Monitoring Eligibility

February 25, 2026 CORRECTIVE ACTION PLAN FISCAL YEAR OF FINDING: June 30, 2025 AUDITOR FINDING: 2025-002 – AL# 14.157 Supportive Housing for the Elderly (Section 202) Area: Eligibility In accordance with 24 CFR section 891.410, section 5.230, and OMB No. 2502-0204, owner shall re-examine tenant elig...

February 25, 2026 CORRECTIVE ACTION PLAN FISCAL YEAR OF FINDING: June 30, 2025 AUDITOR FINDING: 2025-002 – AL# 14.157 Supportive Housing for the Elderly (Section 202) Area: Eligibility In accordance with 24 CFR section 891.410, section 5.230, and OMB No. 2502-0204, owner shall re-examine tenant eligibility at least every 12 months with respect to family income, composition and is required to obtain signed consent forms from assistance applicants. In accordance with HUD Multifamily Occupancy Handbook, Chapter 7, annual certification should be completed and submitted through TRACS within 15 months from previous year’s anniversary date. Based on testing performed recertifications did not occur within the required time period. It is recommended to add monitoring controls to help ensure recertifications are completed in accordance with 24 CFR section 891-410, section 5.230, and OMB No. 2502-0204. CLIENT PLANNED ACTION: (1) Annual recertification report will be reviewed monthly with ComCap Management to ensure timely completion of all recertifications. Demands will be given to tenants if recertifications are not completed within 60 days of initial notification. (2) Monthly dashboards will continue to be produced and reviewed with ComCap Management. The monthly dashboards include annual recertifications, occupancy/vacancy, and move-in/move-outs. CLIENT RESPONSIBLE PARTY: Darla Goddard, Director of Real Estate COMPLETION DATE: 01/01/2026

View Audit 390410

Finding 1176580 (2025-004)

Material Weakness 2025

McDowell County

NC

Eligibility Internal Control / Segregation of Duties Reporting

McDowell County Corrective Action Plan For the Year Ended June 30, 2025 Finding 2025-003 Late Submission of Data Collection Form Name of contact person: Corrective Action: Proposed Completion Date: Finding 2025-004 Inaccurate Information Entry Name of contact person: Corrective Action: Proposed Comp...

McDowell County Corrective Action Plan For the Year Ended June 30, 2025 Finding 2025-003 Late Submission of Data Collection Form Name of contact person: Corrective Action: Proposed Completion Date: Finding 2025-004 Inaccurate Information Entry Name of contact person: Corrective Action: Proposed Completion Date: Corrective Actions for Findings 2025-004 also apply to State requirements and State Awards. Lynn Freeman, Medicaid Program Manager We will provide refresher trainings on household composition, electronic income/resource matches, Request for information requirements, and timely recertifications, with weekly sessions on new policy changes. Medicaid management will collaborate with upper management on solutions to enhance quality control capacity and address staffing constraints. This will include the backlog from the Hurricane Helene-related statewide recertification pause by prioritizing workload distribution. Monthly reviews will continue to be conducted to meet state-mandated requirements, with continued focus on strengthening controls. All required trainings will be completed by November 30, 2025. Section IV - State Award Findings and Question Costs Alison Bell, Finance Officer The 2024 audit report was delayed due to the County's audit firm experiencing a significant cybersecurity incident between October 2024 and February 2025; fieldwork had been completed in October however the financials could not be finished timely and subsequently the data collection was filed late. The audit firm has accepted full responsibility for the delay and informed the County that they would not longer provided audit services to counties. McDowell County issued requests for proposals to all firms qualified to perform county audits for fiscal year 2025 and intends to submit their data collection timely moving forward. June 30, 2026 Section III - Federal Award Findings and Question Costs 161

View Audit 390382

Finding 1176533 (2025-015)

Material Weakness 2025

State of West Virginia

WV

Allowable Costs / Cost Principles Eligibility § 200.303 § 200.403

2025-015 ALLOWABLE COSTS/COST PRINCIPLES, ELIGIBILITY DEPARTMENT OF HEALTH & HUMAN SERVICES (DOHHS) Assistance Listing Number: 93.658 DOHHS’s corrective action plan from the prior audit indicated that a system change was made during FY 2025 to prevent future payments to psychiatric facilities from b...

2025-015 ALLOWABLE COSTS/COST PRINCIPLES, ELIGIBILITY DEPARTMENT OF HEALTH & HUMAN SERVICES (DOHHS) Assistance Listing Number: 93.658 DOHHS’s corrective action plan from the prior audit indicated that a system change was made during FY 2025 to prevent future payments to psychiatric facilities from being charged to the Foster Care program. This change did go into effect on September 19, 2024. However, this provider was an anomaly. The facility was a Residential Treatment Facility which was Title IV-E eligible until they received Psychiatric Residential Treatment Facility (PRTF) status in August of 2024, however, they did not provide DOHHS documentation until February 2025. Immediate action was taken by a call ticket to the Technical Call Center to ensure that the PRTF was not continuing to show as IV-E eligible. The staff from the Division of Regulatory Management will continue, as part of their annual licensing review will ensure wvPATH provider records are updated to reflect timely licensing status as well as ensuring that child specific agreements do not lapse. The previously stated Corrective Action Plan remains in place and will continue.

View Audit 390319

Finding 1176531 (2025-014)

Material Weakness 2025

State of West Virginia

WV

Special Tests & Provisions Subrecipient Monitoring Eligibility

2024-014 SPECIAL TESTS AND PROVISIONS - HEALTH AND SAFETY REQUIREMENTS DEPARTMENT OF HUMAN SERVICES (DOHS) Assistance Listing Number: 93.575/93.596 The Quality Assurance specialists have established a plan of action for each Regulation Unit (Child Care Licensing Unit and Family Child Care Unit) to m...

2024-014 SPECIAL TESTS AND PROVISIONS - HEALTH AND SAFETY REQUIREMENTS DEPARTMENT OF HUMAN SERVICES (DOHS) Assistance Listing Number: 93.575/93.596 The Quality Assurance specialists have established a plan of action for each Regulation Unit (Child Care Licensing Unit and Family Child Care Unit) to maintain continual monitoring of conducted Annual Unannounced Monitoring Visits required under 45 CFR §98.42(b)(2)(i)(B). Within the tracking spreadsheet, detailed information is input from our documentation system PATH COGNOS Report PCC-PLI 1080. Information includes Provider Name, Provider Number, Provider Type, Specialist Name, and columns for visits conducted and visits not yet conducted. To provide an overall year-to-date calculation of monthly totals/percentages, a Yearly Summary tab is included in the spreadsheet for a quick reference analysis to provide an additional method of tracking visits. As the monthly totals and percentages change, the data updates on the monthly tabs and the Yearly Summary tab. Program Managers have implemented individual efforts to track visits conducted by specialists. The PCC-PLI 1080 report is distributed twice per month by PM II to each Program Manager for review. Specialists have been instructed to include completed annual unannounced monitoring visits on monthly report data, which can then be compared with the PCC-PLI-1080 reports. Additionally, a tracking system has been implemented that requires specialists to pre-plan annual unannounced visits for the 2026 calendar year to ensure visits are completed.

View Audit 390319

Finding 1176526 (2025-022)

Material Weakness 2025

State of West Virginia

WV

Eligibility Special Tests & Provisions Material Weakness § 200.303

2025-022 SPECIAL TESTS AND PROVISIONS – INCOME ELIGIBILITY AND VERIFICATION SYSTEM DEPARTMENT OF HUMAN SERVICES (DOHS) Assistance Listing Number: 93.558 Effective April 1, 2026, the Department of Human Services’ Bureau for Family Assistance will implement a series of mandatory training and policy en...

2025-022 SPECIAL TESTS AND PROVISIONS – INCOME ELIGIBILITY AND VERIFICATION SYSTEM DEPARTMENT OF HUMAN SERVICES (DOHS) Assistance Listing Number: 93.558 Effective April 1, 2026, the Department of Human Services’ Bureau for Family Assistance will implement a series of mandatory training and policy enhancements designed to bolster compliance and documentation standards for all WV WORKS workers. The primary focus of these updates is the rigorous handling of data matches; specifically, workers must complete a Blackboard course on Single Agency Audits that emphasizes the necessity of documenting all Income and Eligibility Verification System (IEVS) matches. To support this at the foundational level, an IEVS case comments exercise has been integrated into the third week of the standard training curriculum. Monitoring and quality control will also enhance Rushmore Review protocols. Supervisors are now required to perform three Rushmore Reviews per month, while the WV WORKS policy team will continue their own reviews to track systemic trends. Furthermore, the Division of Performance and Quality Improvement (DPQI) will now include specific compliance checks for data match completion within their monthly review of 18 cases. To ensure staff are well-equipped for these changes, the Division of Professional Development has released a suite of resources, including procedural Desk Guides and supplementary YouTube training videos. Supervisors are required to present them during monthly unit meetings. To finalize the process, every worker must provide a formal sign-off to confirm they have received and understood the updated procedures regarding data exchanges. 85

View Audit 390319

Finding 1176502 (2025-019)

Material Weakness 2025

State of West Virginia

WV

Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility § 200.214 § 200.303

2025-019 SUSPENSION AND DEBARMENT HIGHER EDUCATION POLICY COMMISSION Assistance Listing Number: 47.076 This finding was previously identified during the FY 2024 audit. Since the original finding, HEPC has addressed and resolved this issue by strengthening its internal controls and procedures. On Mar...

2025-019 SUSPENSION AND DEBARMENT HIGHER EDUCATION POLICY COMMISSION Assistance Listing Number: 47.076 This finding was previously identified during the FY 2024 audit. Since the original finding, HEPC has addressed and resolved this issue by strengthening its internal controls and procedures. On March 31, 2025, HEPC updated policies and procedures that established and maintain effective control over federal awards. The update established a threshold for identifying covered transactions and provides clear guidance on conducting suspension and debarment searches in SAM.gov for those transactions. The update also provided additional steps for documentation required to assess whether a vendor is excluded or disqualified if not in SAM.gov. The instances noted in this finding happened before the corrective action plan was implemented. Management believes the updated processes and procedures are effective.

View Audit 390319

Finding 1176485 (2025-003)

Material Weakness 2025

Claflin University

SC

Student Financial Aid Eligibility

The University acknowledges the Pell Grant under award identified during the audit. University officials have developed the following corrective actions to ensure correct calculation of Pell Grant awards in accordance with 34 CFR §690.75. To correct the underlying problem, Financial Aid staff will w...

The University acknowledges the Pell Grant under award identified during the audit. University officials have developed the following corrective actions to ensure correct calculation of Pell Grant awards in accordance with 34 CFR §690.75. To correct the underlying problem, Financial Aid staff will work directly with Power FAIDS support to identify the specific cause(s) of the miscalculation of Pell Grant awarding. The University will also enhance staff competency through targeted training on the Pell Grant calculation methodology. All training activities will be documented and maintained in office records as part of the University’s compliance documentation. Additionally, the University will develop and revise internal policies and procedures related to Pell Grants to ensure consistency, accuracy, and adherence to federal regulations. These updated procedures will guide staff in the correct application of Pell rules and system processes. Further, to ensure ongoing compliance, the University will implement monitoring and quality‑assurance measures. These measures will include the conduct of monthly internal audits by an internal reviewer within Financial Aid to ensure Pell award accuracy. Monitoring results will be reviewed by the Director of Financial Aid and reported to the Vice President for Enrollment Management for oversight and accountability. Finally, these officials will ensure that the financial aid software used by the University is properly configured and maintained to address and prevent future awarding issues.

View Audit 390298

Finding 1176359 (2025-001)

Material Weakness 2025

City of Sterling Heights, Michigan

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility

2025-001 – Federal Funding Accountability and Transparency Act (FFATA) Reporting Auditor Description of Criteria, Condition, and Effect: Under the requirements of the Federal Funding Accountability and Transparency Act, direct recipients of grants or cooperative agreements are required to report fir...

2025-001 – Federal Funding Accountability and Transparency Act (FFATA) Reporting Auditor Description of Criteria, Condition, and Effect: Under the requirements of the Federal Funding Accountability and Transparency Act, direct recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Direct recipients must report key data elements by registering through the FSRS and reporting subaward data through that system. Direct recipients that are awarded a federal grant are required to file a FFATA sub-award report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. The City did not submit the required key data elements through the FSRS reporting system as required by the Uniform Guidance and as a result has not completed the appropriate sub-award reporting that is required for direct recipients. Auditor Recommendation: We recommend that the City review its procedures for FFATA reporting through FSRS and ensure that all key data elements are reported timely moving forward. Corrective Action: Upon discovery of the issue in November 2025, City staff corrected the noncompliance by submitting the required report to the appropriate reporting system/entity. To prevent recurrence, management has strengthened internal controls over FFATA reporting and Single Audit preparation by (1) adding review and verification steps, (2) communicating expectations with key personnel, and (3) explicitly assigning submission responsibility to a designated submitter who is independent of the individual(s) responsible for monitoring compliance. These control enhancements are expected to identify and prevent similar deficiencies and, based on implementation to date, appear to be operating effectively. Responsible Person: Jason Denton, Controller Anticipated Completion Date: June 30, 2026

View Audit 390179

Finding 1176226 (2025-003)

Material Weakness 2025

School District of Cadott Community

WI

School Nutrition Programs Allowable Costs / Cost Principles Eligibility

2025-003: Internal Control over Eligibility – Child Nutrition Cluster Corrective Action: Acknowledging the lack of controls within the Child Nutrition program's eligibility process, the District has determined that hiring additional staff to resolve this internal control deficiency is not a cost-eff...

2025-003: Internal Control over Eligibility – Child Nutrition Cluster Corrective Action: Acknowledging the lack of controls within the Child Nutrition program's eligibility process, the District has determined that hiring additional staff to resolve this internal control deficiency is not a cost-effective solution. Consequently, the Food Service Director and the Finance Director share the responsibility of reviewing student eligibility forms. Responsible Person: Danielle Mittermeyer Anticipated Completion Date: Ongoing

View Audit 390107

Finding 1176201 (2025-002)

Material Weakness 2025

Chowan County, North Carolina

NC

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Corrective Action: Trainings, Policy, and Procedures are being developed for all Medicaid caseworkers to follow. Medicaid workers will need to make sure they are working the SSI Termination report to eliminate any future paybacks. Also, a training on SSI Termination / Ex Parte will be conducted with...

Corrective Action: Trainings, Policy, and Procedures are being developed for all Medicaid caseworkers to follow. Medicaid workers will need to make sure they are working the SSI Termination report to eliminate any future paybacks. Also, a training on SSI Termination / Ex Parte will be conducted with all Medicaid workers, including NC Fast Learning Gateway Training “Supplemental Security Income (SSI) Course”. Proposed Completion Date: June 30, 2026. Certain controls are currently being created and reviewed. Management will continue to monitor the progress of this issues and modify the controls as needed.

View Audit 390062

Corrective Action Plans

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