Corrective Action Plans

Finding 1182789 (2025-001)

Material Weakness 2025

NY

Eligibility HUD Housing Programs Material Weakness

CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 HANAC, Inc. and Affiliates (HANAC) respectfully submits the following corrective action plan for the year ended June 30, 2025. CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2025 The finding from the June 30, 2025...

CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 HANAC, Inc. and Affiliates (HANAC) respectfully submits the following corrective action plan for the year ended June 30, 2025. CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2025 The finding from the June 30, 2025 consolidated and combined schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None reported. FINDINGS – FEDERAL AWARD PROGRAMS AUDITS Material Weakness FINDING 2025-001 Eligibility U.S. Department of Housing and Urban Development 14.157 Supportive Housing for the Elderly Section 202 Loan Condition: During our testing, we noted that the income verification of tenant eligibility through Enterprise Income Verification (“EIV”) system was not performed timely. Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: Management agrees with the recommendation and has begun to implement the following: • A checklist form will be completed for every certification and signed off once file is approved. • An AR form will be created for the move in, transfer and move out process which is to be attached with proof of payment. Once completed it is to be sent to senior staff for review. • The file setup format and recertification updates will be monitored on a monthly basis. • EIVs are being run according to the frequency provisions related to the type of reports we are annually required to complete as per HUD. • Annual inspections are being scheduled as per Annual Recertifications are being processed. • Bi-weekly meetings will be in place to discuss the results collected with a tracking log on the progress of the project. • Trainings will be scheduled to keep on top of HUD updates/compliance procedures; Yardi software trainings; and in-house trainings covering compliance with the files and Yardi 50059 module. Expected completion date: 07/31/2026 If any cognizant or oversight agency has questions regarding this plan, please call Lola Maroulis, Chief Financial Officer at 212-840-8005, extension 111. Sincerely yours, Lola Maroulis, Chief Financial Officer

View Audit 394172

Finding 1182779 (2025-005)

Material Weakness 2025

Missouri Valley College

MO

Student Financial Aid Eligibility Significant Deficiency

Finding Number: 2025-005 Title: Policies and Procedures Related to Packaging Student Financial Aid To enhance compliance and address these deficiencies, the College will implement a new procedure for documenting and retaining borrower notifications. A timestamped email notification system will be cr...

Finding Number: 2025-005 Title: Policies and Procedures Related to Packaging Student Financial Aid To enhance compliance and address these deficiencies, the College will implement a new procedure for documenting and retaining borrower notifications. A timestamped email notification system will be created to ensure that all required communications to students regarding federal direct loans are not only sent but also retained for auditing purposes. Additionally, a formal review process will be established to verify transfer students' grade levels and academic progressions. This will involve cross-referencing transfer credits and ensuring proper classification of students to prevent future errors. After all transcripts are evaluated, Financial Aid will repackage the aid offer, if required. Regular audits will be introduced to review the documentation of borrower notifications and the packaging process to ensure compliance with federal regulations. Furthermore, training sessions will be conducted for staff involved in the Financial Aid and Registrar Departments to reinforce the importance of accuracy in documenting communications and package decisions. By implementing these corrective actions, the College aims to enhance compliance with federal guidelines and improve the accuracy of Financial Aid packaging for all students. Management is committed to these changes and will ensure the timely execution of this plan. Anticipated Completion Date: March 31, 2026

View Audit 394160

Finding 1182753 (2025-010)

Material Weakness 2025

Goreville Unit School District 1

IL

Eligibility

Name of Contact Person: Jonathan Green, Superintendent. Recommendation: We recommend the District implement procedures to monitor the Maintenance of Effort compliance throughout the year, including during the budgeting process. Corrective Action: We arenow aware of the compliance requirement and wil...

Name of Contact Person: Jonathan Green, Superintendent. Recommendation: We recommend the District implement procedures to monitor the Maintenance of Effort compliance throughout the year, including during the budgeting process. Corrective Action: We arenow aware of the compliance requirement and will monitor the Maintenance of Effort compliance under the Eligibility Standard going forward. Proposed Completion Date: Fiscal year 2026.

View Audit 394138

Finding 1182669 (2025-007)

Material Weakness 2025

School City of East Chicago

IN

Subrecipient Monitoring Eligibility Material Weakness § 200.303 § 200.334 § 200.77 § 200.78

FINDING 2025-007 Finding Subject: Title I Grants to Local Educational Agencies - Eligibility Federal Agency: Department of Education Audit Findings: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Lela Simmons, CFO Contact Phone Number and Email Address: 219 391...

FINDING 2025-007 Finding Subject: Title I Grants to Local Educational Agencies - Eligibility Federal Agency: Department of Education Audit Findings: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Lela Simmons, CFO Contact Phone Number and Email Address: 219 391 4100 Ex 12365: lesimmons@ecps.org Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The district will strengthen internal controls for ensure that all documentation are obtained from the Non- Pubs and filed accordingly in the Federal Department Office. Anticipated Completion Date: We anticipate having the above corrective action plan in place by October 31, 2026

View Audit 394104

Finding 1182613 (2025-006)

Material Weakness 2025

Rush County Schools

IN

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303 § 200.77 § 200.78

FINDING 2025-006 Finding Subject: Title I Grants to Local Educational Agencies - Eligibility Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation to ensure compliance with requirements related to the grant agr...

FINDING 2025-006 Finding Subject: Title I Grants to Local Educational Agencies - Eligibility Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Eligibility compliance requirement. Contact Person Responsible for Corrective Action: Julie Cramer Contact Phone Number and Email Address: 765-932-4186, cramerj@rushville.k12.in.us Views of Responsible Officials: Option 1: “We concur with the finding.” Description of Corrective Action Plan: The Technology Director or assigned State Reporter will supply the Title I Director and Food Services Director with rosters reports from our SIS system prior to the certification of the October 1 count each year. Applications on file will be reviewed for accuracy and updates to our SIS will be made checking for accuracy. These reports will be retained for audit purposes and used by the Grant Coordinator to determine that enrollment numbers in the Title I application have been populated correctly. The Title I Director and Food Services Director will both sign off on this document. Anticipated Completion Date: September 2026

View Audit 394041

Finding 1182601 (2025-003)

Material Weakness 2025

Rush County Schools

IN

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

FINDING 2025-003 Finding Subject: Child Nutrition Cluster – Internal Controls - Eligibility Summary of Finding: There was no documented evidence of the Director of Food Service reviewing the eligibility determinations for free and reduced lunches that were made by the Cafeteria Secretary during the ...

FINDING 2025-003 Finding Subject: Child Nutrition Cluster – Internal Controls - Eligibility Summary of Finding: There was no documented evidence of the Director of Food Service reviewing the eligibility determinations for free and reduced lunches that were made by the Cafeteria Secretary during the audit period. Contact Person Responsible for Corrective Action: Julie Cramer Contact Phone Number and Email Address: 765-932-4186, cramerj@rushville.k12.in.us Views of Responsible Officials: Option 1: “We concur with the finding.” Description of Corrective Action Plan: The Middle School Cafeteria Secretary will contact parents regarding verifications of their free/reduced lunch application information. This information will then be reviewed by the Director of Food Service, to determine whether the information is accurate. Parents are always notified on any changes to the lunch status for students. Both the Cafeteria Secretary and the Director of Food Service will sign off on each application to document that reviews were performed. Anticipated Completion Date: March 3, 2026

View Audit 394041

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