Corrective Action Plans

Finding 1205257 (2025-001)

Material Weakness 2025

OK

Internal Control / Segregation of Duties Questioned Costs Eligibility

OLD TOWNE SQUARE, INC. CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 AND 2024 Old Towne Square, Inc 609 SW F Avenue Lawton, OK 73501 Telephone: (580) 353-7392 Fax: (580) 353-6111 Corrective Action Plan Finding: 2025-001-Lack of Adequate Quality Control Regarding Tenant Procedures- Eligibility Cond...

OLD TOWNE SQUARE, INC. CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 AND 2024 Old Towne Square, Inc 609 SW F Avenue Lawton, OK 73501 Telephone: (580) 353-7392 Fax: (580) 353-6111 Corrective Action Plan Finding: 2025-001-Lack of Adequate Quality Control Regarding Tenant Procedures- Eligibility Condition: The quality of supervision over tenant file functions, such as calculating tenant rent and Housing Assistance Payments should be timely and sufficient to find errors in calculations or mis-application or mis-understanding of procedures. Corrective Action Planned: I am Rita Love, Executive Director. We will comply with the auditor’s recommendation. Person responsible for corrective action: Anna Richman, Executive Director Telephone: (580) 353-7392 Old Towne Square, Inc. Fax: (580) 353-6111 609 SW F Avenue Lawton, OK 73501 Anticipated Completion Date: June 30, 2026

View Audit 396966

Finding 1205253 (2025-001)

Material Weakness 2025

Beaufort County

NC

Eligibility Internal Control / Segregation of Duties Questioned Costs

None reported. Finding 2025-001 Name of contact person: Corrective Action: Staff will continue to receive training on the importance of maintaining complete and accurate files. Training will be focused on current resource audit findings as well as income calculation. Case file documentation should c...

None reported. Finding 2025-001 Name of contact person: Corrective Action: Staff will continue to receive training on the importance of maintaining complete and accurate files. Training will be focused on current resource audit findings as well as income calculation. Case file documentation should clearly outline the steps taken by caseworkers when determining eligibility. Checklists have been established to address errors cited during audits and are required at both applications and recertifications. As policies change or additional recommendations are issued by the State, these checklists will be updated to ensure staff remain aware of current requirements and procedures. BEAUFORT COUNTY Corrective Action Plan For the Year Ended June 30, 2025 Section II - Financial Statement Findings Section III - Federal Award Findings and Question Costs NORTH CAROLINA Amy Spring, Income Maintenance Administrator Supervisors will ensure that all staff complete the training required provided by the Division of Health Benefits. In addition, supervisors will offer supplemental training when needed to ensure staff maintain a thorough understanding of both current and riewly issued policies, as policy guidance is continually updated. Internal reviews of records will be conducted to ensure proper documentation is maintained for all cases. Our Quality Control Specialist has been completing second-party reviews for over a year. Policy changes throughout the year often requiring system updates. When this occurs, NCFAST training will also be provided to ensure that system procedures align with policy requirements. The Quality Control Specialist will continue to collaborate with supervisors to ensure staff are knowledgeable about common error trends to prevent recurring mistakes. Although errors are categorized as Significant Deficiencies, Beaufort County continues to show a steady decrease in errors across recent fiscal years. In fiscal year 2021-2022, there were 21 errors; in 2022-2023, there were 13; and in 2023-2024, there were 11. Currently, there are 6 errors for fiscal year 2024-2025 . Staff continue to prioritize accuracy in determining eligibility for the citizens of Beaufort County.BEAUFORT COUNTY Corrective Action Plan For the Year Ended June 30, 2025 NORTH CAROLINA BOARD OF COMMISSIONERS Frankie Waters, Chairman Jerry E. Langley, Vice Chairman Ed Booth Stan Deatherage John Rebholz Hood Richardson Randy Walker COUNTY OFFICIALS Brian M. Alligood, County Manager Katie Mosher, Clerk to the Board Anita Radcliffe, Finance Director David Francisco, County Attorney Proposed completion date: Corrective Actions for Finding 2025-001 also apply to State Award Findings. Section IV - State Award Findings and Question Costs Section III - Federal Award Findings and Question Costs (continued) Training was provided to all Medicaid staff on November 13, 2025, to review the findings and corrective action items. The agenda and sign-in sheets will be attached to the Corrective Action Plan. In addition, weekly training will continue to be held to review policy updates, NCF FAST changes, and common errors identified during second-party reviews. BEAUFORT COUNTY ADMINISTRATION BUILDING 121 West 3rd Street * Washington, North Carolina 27889 * Phone (252) 946-0079 * Fax (252)-946-7722 170 BOARD OF COMMISSIONERS Frankie Waters, Chairman Jerry E. Langley, Vice Chairman Ed Booth Stan Deatherage John Rebholz Hood Richardson Randy Walker COUNTY OFFICIALS Brian M. Alligood, County Manager Katie Mosher, Clerk to the Board Anita Radcliffe, Finance Director David Francisco, County Attorney BEAUFORT COUNTY ADMINISTRATION BUILDING 121 West 3rd Street * Washington, North Carolina 27889 * Phone (252) 946-0079 * Fax (252)-946-7722 169

View Audit 396955

Finding 1205238 (2025-002)

Material Weakness 2025

Metropolitan School District of Southwest Allen County

IN

School Nutrition Programs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Finding 2025-002 Finding Subject: Child Nutrition Cluster – Internal Controls Summary of Finding: The School Corporation had not properly designed or implemented an effective system of internal controls, which would include segregation of duties, that would likely be effective in preventing, or dete...

Finding 2025-002 Finding Subject: Child Nutrition Cluster – Internal Controls Summary of Finding: The School Corporation had not properly designed or implemented an effective system of internal controls, which would include segregation of duties, that would likely be effective in preventing, or detecting and correcting material noncompliance. Contact Person Responsible for Corrective Action: Erika Horner, Director of Food Service Contact Phone Number and Email Address: (260)431-2030, ehorner@sacs.k12.in.us Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: All direct certification information shall be initiated by the Director of Food Service: pulling the information monthly from CNP Web. The list of students to be directly certified will be printed, signed and dated by the Director of Food Service. Once information is imported into the student management system, the Assistant Food Service Director would then cross reference the printed list of information to benefits assigned in the student management system to ensure accuracy. The Assistant Food Service Director will initial next to the students they spot check on the list. The printed document with signatures of both parties will be retained with the school years applications.􀯗 The Director of Food Service has the responsibility to ensure that all vendors are free from suspension, debarment, or aren’t otherwise excluded. Suspension and debarment documents are to be collected on a yearly basis. If such documents are not available through the SFA Cooperative, it will be the responsibility of the Director of Food Service to acquire them through SAM.gov website or contacting the vendor directly. All documents are to be signed, dated, and retained by school year by both the Director of Food Services and the Asst. Director of Food Services. Anticipated Completion Date: January 31, 2026 _________________________ Randi Libby_ (Signature) _______Chief Operating Officer __ (Title) __________January 7, 2026__________ (Date)

View Audit 396929

Finding 1205229 (2025-001)

Material Weakness 2025

North Fork Local School District

OH

Eligibility School Nutrition Programs Matching / Level of Effort / Earmarking

All free and reduced meal applications are completed electronically by the parent or guardian through the District's online application system. The parent/guardian inputs household and financial information used to determine eligibility in accordance with the income eligibility guidelines establishe...

All free and reduced meal applications are completed electronically by the parent or guardian through the District's online application system. The parent/guardian inputs household and financial information used to determine eligibility in accordance with the income eligibility guidelines established by the State of Ohio and the National School Lunch Program. To ensure internal controls are in place and that eligibility determinations are accurate, the District will implement a review process whereby all electronic applications submitted by parents or guardians will be reviewed by the Cafeteria Supervisor or a designated staff member prior to final approval. The reviewer will ensure that all required fields are completed, the information provided appears reasonable, and the eligibility determination generated by the system is appropriate based on the information provided on the application. If any application appears incomplete or contains questionable information, the Cafeteria Supervisor or designee will contact the parent or guardian for clarification or correction prior to approving the application. Documentation of the review will be maintained by a checklist or retained electronically to demonstrate that the review occurred. Periodic monitoring of the process will be performed to ensure the control procedures continue to operate as intended and that applications are properly reviewed before eligibility is finalized. Anticipated Completion Date Effective immediately and ongoing. Responsible Contact Person Cafeteria Supervisor Dawn Nelson

View Audit 396900

Finding 1205195 (2025-002)

Material Weakness 2025

Gaudenzia Inc.

PA

Questioned Costs Allowable Costs / Cost Principles Eligibility

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: HOME Investment Partnership Program Assistance Listing Number: 14.239 Pass-Through Agencies: City of Philadelphia, Redevelopment Authority: Venango – Loan Thompson Street – Loan County of Schuylkill - Home Investm...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: HOME Investment Partnership Program Assistance Listing Number: 14.239 Pass-Through Agencies: City of Philadelphia, Redevelopment Authority: Venango – Loan Thompson Street – Loan County of Schuylkill - Home Investment Partnerships and Housing Trust Funds Programs: Fountain Springs - Loan Mayor and City of Baltimore: Baltimore Housing - Park Heights Women and Children - Loan Type of Finding: - Material Weakness in Internal Control over Compliance - Other Matters Condition: As part of the eligibility requirement for the HOME Investment Partnership program, we are required to review files of client residents who were provided residential drug and alcohol treatment services at the Organization’s locations in Venango (Re-Entry), Fountain Springs, Thompson Street, and Park Heights Women and Children. We sampled a total of 40 resident clients at these four locations covered by HOME loans and requested documentation within client resident files, including proof of residency, proof of income (low income or homeless). Of 40 resident client files reviewed, management could not provide proof of income or residency status for 16 clients, or policies and procedures manuals for 22 clients. Recommendation: We recommend that management adopt and implement formal policies and procedures to ensure compliance with HOME eligibility requirements. Such policies and procedures should include clear communication of compliance requirements between staff and locations, standardized documentation and processes for determining and verifying income eligibility during intake, and procedures for the redetermination of income eligibility for residential clients residing at a location for more than one year. Repeat Finding: 2024-001 Explanation of Disagreement with Audit Finding Management acknowledges the finding and continues to strengthen internal controls related to HOME program compliance, including eligibility documentation and file retention practices across all residential program locations. Management agrees that consistent documentation of eligibility, including proof of income and residency status (as applicable under HOME requirements), is critical. We are currently reviewing and enhancing intake procedures, documentation standards, and internal monitoring processes to ensure all required eligibility documentation is properly obtained, maintained, and uniformly applied across all locations. Action taken in response to finding: In response to the recommendation, management will develop and implement formalized policies and procedures to strengthen compliance with HOME requirements. These will include standardized guidance for eligibility determination at intake, clear documentation requirements across all sites, and procedures for ongoing eligibility review for clients residing in programs beyond one year. Name of the contact person responsible for corrective action: Dr. Deja Gilbert, PhD, MDA, FACHE, LPC, LMHC, President and CEO dgilbert@gaudenzia.org Planned completion date for corrective action plan: June 30, 2026

View Audit 396854

Finding 1205180 (2025-002)

Material Weakness 2025

Jericho Project

NY

Procurement, Suspension & Debarment Eligibility § 200.213

Action Taken: The Jericho Project (Jericho) understands the findings outlined in the audit report. Jericho has updated its procurement procedures for the federal grant to align with 2 CFR section 200.213 and 2 CFR section 180.300. To ensure that vendors supporting efforts on the federal grant are no...

Action Taken: The Jericho Project (Jericho) understands the findings outlined in the audit report. Jericho has updated its procurement procedures for the federal grant to align with 2 CFR section 200.213 and 2 CFR section 180.300. To ensure that vendors supporting efforts on the federal grant are not suspended or debarred from doing business with the federal government, Jericho has added a task in our Procurement Summary (procurement checklist) that specifically requires the project manager and CAO to verify the vendor's eligibility in the System for Award Management ("SAM") maintained by the General Services Administration ("GSA") (available at SAM.gov). In addition to the verification that the vendor is NOT prohibited (debarred or suspended) from providing services to or contracting with the United States government, Jericho will retain a copy of the verification for the procurement file. This action will be completed during the vendor evaluation stage of the procurement and before contract is awarded to the vendor It should be noted that the vendors selected for testing for 2025 were found to be in good standing. Expected completion date: Corrective Action incorporation has already begun and will be fully implemented by 6/30/2026.

View Audit 396827

Finding 1205159 (2025-003)

Material Weakness 2025

Beacon College, Inc.

FL

Questioned Costs Student Financial Aid Eligibility

Recommendation: We recommend the College evaluate its procedures around packaging and awarding students to ensure loan eligibility is reassessed prior to disbursement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to...

Recommendation: We recommend the College evaluate its procedures around packaging and awarding students to ensure loan eligibility is reassessed prior to disbursement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: 􀁸 The College determined that this issue resulted from the absence of a consistent process to identify and reassess students whose transfer credits were added or revised after initial financial aid packaging, potentially affecting grade level classification and Direct Loan eligibility. 􀁸 To correct this, the College will revise its packaging procedures to require a mandatory review of Direct Loan eligibility whenever transfer credits are added or updated. The Financial Aid Office will work in coordination with the IT Department and the Registrar’s Office to develop automated reports or system alerts that flag students with transfer credit changes occurring after packaging. These reports will be reviewed regularly, and any impacted student records will be reassessed and updated as necessary prior to disbursement. 􀁸 In addition, the College will strengthen oversight by implementing monitoring controls such as requirements. These measures are intended to prevent future instances of under-awarding and to enhance internal controls within the financial aid packaging and awarding process. Name(s) of the contact person(s) responsible for corrective action: Stephanie Liebowitz, Director of Financial Aid Planned completion date for corrective action plan: April 15, 2026 – Procedures will be in place for the awards cycle of the incoming 2026-2027 class.

View Audit 396825

Finding 1205150 (2025-032)

Material Weakness 2025

State of Arkansas

AR

Allowable Costs / Cost Principles Eligibility Questioned Costs

Views of Responsible Officials and Planned Corrective Action: Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Items 3, 5, 30, 37, and 40, DMS is currently developing system upgrades that will establish a revalidation date that is 60 days prior ...

Views of Responsible Officials and Planned Corrective Action: Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Items 3, 5, 30, 37, and 40, DMS is currently developing system upgrades that will establish a revalidation date that is 60 days prior to the revalidation expiration date and auto-terminate providers at the time of their revalidation expiration date if they have not successfully completed the revalidation process. For Sample Item 24, DMS is currently developing a system change to reinstitute revalidation requirements for Early Intervention Day Treatment and Adult Developmental Day Treatment providers. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Elizabeth Pitman Title: Director, Division of Medical Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-244-3944 Email Address: Elizabeth.Pitman@dhs.arkansas.gov

View Audit 396807

Finding 1205149 (2025-031)

Material Weakness 2025

State of Arkansas

AR

Eligibility Questioned Costs Special Tests & Provisions

Finding Number: 2025-031 AL Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 13, DMS is currently developing system upgrades that will establish a revali...

Finding Number: 2025-031 AL Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 13, DMS is currently developing system upgrades that will establish a revalidation date that is 60 days prior to the revalidation expiration date and auto-terminate providers at the time of their revalidation expiration date if they have not successfully completed the revalidation process. For Sample Items 31, 35, and 40, DMS is currently developing a system change to reinstitute revalidation requirements for Early Intervention Day Treatment and Adult Developmental Day Treatment providers. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Elizabeth Pitman Title: Director, Division of Medical Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-244-3944 Email Address: Elizabeth.Pitman@dhs.arkansas.gov

View Audit 396807

Finding 1205148 (2025-030)

Material Weakness 2025

State of Arkansas

AR

Eligibility Questioned Costs Subrecipient Monitoring

Finding Number: 2025-030 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. DCO will continue periodic matching and review of state employees with public assistance pr...

Finding Number: 2025-030 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. DCO will continue periodic matching and review of state employees with public assistance programs administered by the agency. Appropriate disciplinary action will continue to be taken by the agency on its own employees based on the outcome of case reviews. The agency will explore the addition of systematic data matching to ensure that salaries of state employees are properly reflected in the eligibility determination and benefit calculation for public assistance benefits. For additional controls, the agency has incorporated a notice into the hiring process regarding reporting all changes in household circumstance and annual communications to all staff regarding their reporting obligations. Anticipated Completion Date: 6/30/26 Contact Person: Name: Mary Franklin Title: Director, Division of County Operations Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-681-8377 Email Address: Mary.franklin@dhs.arkansas.gov

View Audit 396807

Finding 1205147 (2025-029)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Eligibility

Finding Number: 2025-029 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For cases that included a date of death in MMIS, most deficiencies can be attributed to cas...

Finding Number: 2025-029 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For cases that included a date of death in MMIS, most deficiencies can be attributed to case worker error which is being addressed through continued worker education and training. A small number of deficiencies can be attributed to a variety of system errors which are in the process of being corrected. Recoupments of overpayments are also being processed. For cases with no date of death in MMIS, almost half were the result of the eligibility system not receiving the date of death via the monthly match to the Arkansas Department of Health (ADH) vital records data. DHS will work with ADH to identity date of death for those cases and identify any corrective action needed to the match process. The remaining deficiencies can be attributed to a variety of system errors which are in the process of being corrected and worker errors which is being addressed through worker education and training. Recoupments will be processed through both automatic reconciliation and manual processes. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Mary Franklin Title: Director, Division of County Operations Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-681-8377 Email Address: Mary.Franklin@dhs.arkansas.gov

View Audit 396807

Finding 1205146 (2025-028)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Finding Number: 2025-028 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For juveniles with SSI Medicaid, the Social Security Administration (SSA) is responsible fo...

Finding Number: 2025-028 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For juveniles with SSI Medicaid, the Social Security Administration (SSA) is responsible for suspending Medicaid coverage. All incarcerations for cases noted in the findings involving SSI Medicaid, which make up 95% of the total questioned costs for this finding, were reported timely to SSA by the agency. All payments noted as questioned costs were capitated payments which will be recouped through an automatic reconciliation process. Anticipated Completion Date: 6/30/26 Contact Person: Name: Elizabeth Pitman Title: Director, Division of Medical Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-244-3944 Email Address: Elizabeth.Pitman@dhs.arkansas.gov

View Audit 396807

Finding 1205145 (2025-027)

Material Weakness 2025

State of Arkansas

AR

Allowable Costs / Cost Principles Eligibility Questioned Costs

Finding Number: 2025-027 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Items 8, 11, and 28, DMS is currently developing system upgrades that will establish a rev...

Finding Number: 2025-027 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Items 8, 11, and 28, DMS is currently developing system upgrades that will establish a revalidation date that is 60 days prior to the revalidation expiration date and auto-terminate providers at the time of their revalidation expiration date if they have not successfully completed the revalidation process. For Sample Item 30, a site visit has been completed for the provider. The process used for completion of site visits has been updated to address the cause for the delayed site visit. For Sample Item 12, DMS has implemented a system change to electronically collect information contained on the W-9 form which will eliminate the need for provider to submit the form. DHS is in the process of promulgating this policy change. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Elizabeth Pitman Title: Director, Division of Medical Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-244-3944 Email Address: Elizabeth.Pitman@dhs.arkansas.gov

View Audit 396807

Finding 1205144 (2025-026)

Material Weakness 2025

State of Arkansas

AR

Eligibility Questioned Costs Special Tests & Provisions

Finding Number: 2025-026 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 27, a site visit has been completed for the provider. The process used for completion...

Finding Number: 2025-026 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 27, a site visit has been completed for the provider. The process used for completion of site visits has been updated to address the cause for the delayed site visit. For Sample Items 30 and 35, DMS is currently developing system upgrades that will establish a revalidation date that is 60 days prior to the revalidation expiration date and auto-terminate providers at the time of their revalidation expiration date if they have not successfully completed the revalidation process. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Elizabeth Pitman Title: Director, Division of Medical Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-244-3944 Email Address: Elizabeth.Pitman@dhs.arkansas.gov

View Audit 396807

Finding 1205143 (2025-025)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Eligibility

Finding Number: 2025-025 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The error was caused by an eligibility system defect that was corrected in April 2024. Anticipated Co...

Finding Number: 2025-025 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The error was caused by an eligibility system defect that was corrected in April 2024. Anticipated Completion Date: Complete Contact Person: Name: Mary Franklin Title: Director, Division of County Operations Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-681-8377 Email Address: Mary.Franklin@dhs.arkansas.gov

View Audit 396807

Finding 1205142 (2025-024)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Eligibility

Finding Number: 2025-024 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. As the Public Health Emergency has concluded, the agency has returned to normal operations which requ...

Finding Number: 2025-024 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. As the Public Health Emergency has concluded, the agency has returned to normal operations which requires independent assessments to be performed every twelve months for PASSE members. Anticipated Completion Date: Complete Contact Person: Name: Paula Stone Title: Director, Office of Substance Abuse and Mental Health Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-686-9849 Email Address: Paula.stone@dhs.arkansas.gov

View Audit 396807

Finding 1205140 (2025-022)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Student Financial Aid Subrecipient Monitoring

Finding Number: 2025-022 ALN Number(s) and Program Title(s): 93.658 – Title IV-E Foster Care Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. DCFS will conduct a review to determine if additional controls are needed to ensure that foster homes complete all...

Finding Number: 2025-022 ALN Number(s) and Program Title(s): 93.658 – Title IV-E Foster Care Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. DCFS will conduct a review to determine if additional controls are needed to ensure that foster homes complete all required checks. All improper Title IV-E payments will be returned on the next CB-496 quarterly report. Anticipated Completion Date: 4/30/2026 Contact Person: Name: Tiffany Wright Title: Director, Division of Children and Family Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-396-6477 Email Address: Tiffany.Wright@dhs.arkansas.gov

View Audit 396807

Finding 1205138 (2025-020)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Student Financial Aid Subrecipient Monitoring

Finding Number: 2025-020 ALN Number(s) and Program Title(s): 93.658 – Title IV-E Foster Care Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The reconciliation process will be revised to specify steps to identify clients that are eligible to receive Title...

Finding Number: 2025-020 ALN Number(s) and Program Title(s): 93.658 – Title IV-E Foster Care Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The reconciliation process will be revised to specify steps to identify clients that are eligible to receive Title IV-E funding and the process to update their IV-E status. The agency could not make the necessary corrections in AASIS when notified of the deficiency due to the expenses being posted in the prior fiscal year. All necessary adjustments will be made on the quarterly report for the period ending on 3/31/26. Anticipated Completion Date: 4/30/26 Contact Person: Name: Tiffany Wright Title: Director, Division of Children and Family Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-396-6477 Email Address: Tiffany.Wright@dhs.arkansas.gov

View Audit 396807

Finding 1205120 (2025-006)

Material Weakness 2025

State of Arkansas

AR

Reporting Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Finding Number: 2025-006 ALN Number(s) and Program Title(s): 10.646 – Summer Electronic Benefit Transfer Program for Children Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The agency has updated its internal procedures to comply with FNS guidance on com...

Finding Number: 2025-006 ALN Number(s) and Program Title(s): 10.646 – Summer Electronic Benefit Transfer Program for Children Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The agency has updated its internal procedures to comply with FNS guidance on completion of the FNS-46 S-EBT and FNS-388 S-EBT reports. All noted reports have been revised, if necessary, reviewed, and certified. Staff have been trained on the updated procedures. Anticipated Completion Date: Complete Contact Person: Name: Renee Ikard Title: Chief Financial Officer Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-681-8985 Email Address: Renee.Ikard@dhs.arkansas.gov

View Audit 396807

Finding 1205118 (2025-004)

Material Weakness 2025

State of Arkansas

AR

Eligibility School Nutrition Programs Questioned Costs

Finding Number: 2025-004 ALN Number(s) and Program Title(s): 10.646 – Summer Electronic Benefit Transfer Program for Children Views of Responsible Officials and Planned Corrective Action: DHS concurs, in part, and disagrees, in part with this finding. The DCO ARIES team analyzed all potential duplic...

Finding Number: 2025-004 ALN Number(s) and Program Title(s): 10.646 – Summer Electronic Benefit Transfer Program for Children Views of Responsible Officials and Planned Corrective Action: DHS concurs, in part, and disagrees, in part with this finding. The DCO ARIES team analyzed all potential duplicates for 2024 and 2025. DCO considers 59.1% of the records to not be duplicates, because the records have different SSN’s and dates of birth. A total of 35.9% of cases have the same date of birth but different SSN’s and are potential duplicates. DCO is in the process of reviewing these cases to determine if any system or process adjustments are needed to prevent potential duplicates in the future. The remaining potential duplicates identified by ALA have already been resolved or are being investigated. A refresher training will be conducted with staff who determine eligibility and issue benefits for the Summer EBT program before the program starts in 2026. DCO disagrees that it did not meet the minimum sample verification requirements. A sample of 3% of approved applications received were reviewed according to the 2025 Plan of Operational Management that was approved by FNS. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Mary Franklin Title: Director, Division of County Operations Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-681-8377 Email Address: Mary.Franklin@dhs.arkansas.gov

View Audit 396807

Finding 1205098 (2025-004)

Material Weakness 2025

Puerto Rico Safe Drinking Water Treatment Revolving Loan Fund

PR

Eligibility Questioned Costs Cash Management

PRMP partially concurs with this finding and emphasizes that claims submitted to the federal government must accurately distinguish eligibility categories to ensure the appropriate federal matching percentage is applied. A corrective action plan has already been implemented as part of the Phase 3 ro...

PRMP partially concurs with this finding and emphasizes that claims submitted to the federal government must accurately distinguish eligibility categories to ensure the appropriate federal matching percentage is applied. A corrective action plan has already been implemented as part of the Phase 3 rollout of the MMIS project, initiated in May 2024. This phase focuses on establishing a comprehensive Financial Management solution within PRMMIS. The enhanced system capabilities support the calculation, production, and distribution of capitation and supplemental payments to carriers, including automated adjustments and reconciliations. Stabilization activities have also included the conversion and reconciliation of legacy system data to facilitate a seamless transition.

View Audit 396776

Finding 1205071 (2025-002)

Material Weakness 2025

Economic and Community Development Institute, Inc.

OH

Eligibility Questioned Costs Reporting § 200.303

Condition: During eligibility testing of loan disbursements under the RMAP program, one of eight disbursements tested was made to a borrower located outside of the eligible area. The loan was disbursed in fiscal year 2025 for $10,000. Planned Corrective Action: The ECDI processing and loan allocatio...

Condition: During eligibility testing of loan disbursements under the RMAP program, one of eight disbursements tested was made to a borrower located outside of the eligible area. The loan was disbursed in fiscal year 2025 for $10,000. Planned Corrective Action: The ECDI processing and loan allocation teams will not exclusively leverage it’s CRM system for determining USDA eligibility based on borrower/business address. The team will use the USDA website in determining eligibility prior to allocating USDA funds to a project. Related to the specific ineligible $10,000 USDA loan, the team has communicated to its USDA partner to make them aware of this specific issue and ECDI is in the process of removing USDA funds and replacing with another source. Contact Person Responsible for Corrective Action: Brian Barrett and Sean Henderson Completion Date: In process

View Audit 396710

Finding 1205065 (2025-010)

Material Weakness 2025

School District of Polk County, Florida

FL

Questioned Costs Eligibility Significant Deficiency

High School Diploma or Equivalent Recommendation: We recommend that the District establish policies and procedures to ensure the completeness and accuracy of documentation to support the percentage of students that lack a high school diploma or its equivalent. Explanation of disagreement with audit ...

High School Diploma or Equivalent Recommendation: We recommend that the District establish policies and procedures to ensure the completeness and accuracy of documentation to support the percentage of students that lack a high school diploma or its equivalent. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Actions planned in response to finding: The District will provide district-level training for registrar personnel on eligibility thresholds related to reporting ratios, including the percentage of students without a high school diploma or equivalent. Training will include guidance on required documentation, verification steps, and procedures to ensure the completeness and accuracy of supporting records. Updated procedures will be shared with all registrar staff to promote consistency across campuses and ensure compliance with reporting requirements. Responsible party: Registrar, Workforce Education Planned completion date for corrective action plan: April 30, 2026 Plan to monitor completion of corrective action plan: Workforce Education leadership will conduct monthly reviews to confirm that documentation supporting eligibility ratios is complete, accurate, and aligned with established procedures. Any discrepancies identified during monthly reviews will be addressed with registrar staff to ensure ongoing compliance and continuous improvement.

View Audit 396707

Finding 1205062 (2025-007)

Material Weakness 2025

School District of Polk County, Florida

FL

Questioned Costs Special Tests & Provisions Student Financial Aid

Special Tests and Provisions Recommendation: It is recommended that the District strengthen its internal controls over the R2T4 calculation process by implementing a secondary review or quality-assurance check of scheduled clock hours prior to finalizing R2T4 calculations. Staff should receive targe...

Special Tests and Provisions Recommendation: It is recommended that the District strengthen its internal controls over the R2T4 calculation process by implementing a secondary review or quality-assurance check of scheduled clock hours prior to finalizing R2T4 calculations. Staff should receive targeted training on the requirements of 34 CFR § 668.22, particularly regarding the use of scheduled hours in determining earned aid and post-withdrawal disbursement eligibility. Additionally, standardized calculation worksheets or system-generated hour reports should be utilized to reduce reliance on manual entry and minimize the risk of human error. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Actions planned in response to finding: Financial Aid Coordinators from both technical colleges will collaborate to review and audit each other's RT24 calculations to ensure accuracy, accountability, and compliance with regulatory requirements. Responsible party: Financial Aid Coordinator Planned completion date for corrective action plan: April 1, 2026 Plan to monitor completion of corrective action plan: Monthly meetings with the Workforce Finance Department will be held to review RT24 calculations, address discrepancies, and confirm ongoing compliance.

View Audit 396707

Finding 1205061 (2025-006)

Material Weakness 2025

School District of Polk County, Florida

FL

Questioned Costs Student Financial Aid Eligibility

Return to Title IV Recommendation: We recommend that a process is put in place to ensure that all students are notified upon withdrawal they may be required to return federal award funds back to the Department of Education. Explanation of disagreement with audit finding: There is no disagreement wit...

Return to Title IV Recommendation: We recommend that a process is put in place to ensure that all students are notified upon withdrawal they may be required to return federal award funds back to the Department of Education. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Actions planned in response to finding: The District will develop a letter in FOCUS that would automatically generate and notify all students when they are required to return funds to the Department of Education Responsible party: Financial Aid Coordinator, Workforce Finance Department Planned completion date for corrective action plan: April 30, 2026 Plan to monitor completion of corrective action plan: The Financial Aid Coordinator and Workforce Finance Department will conduct monthly reviews to confirm the automated notification process is functioning correctly and that required letters are being sent and documented.

View Audit 396707

Corrective Action Plans

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