Corrective Action Plans

Finding 1172101 (2025-003)

Material Weakness 2025

OR

Special Tests & Provisions Questioned Costs Student Financial Aid

Finding 2025-003 Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing: 84.007, 84.033, 84.063, 84.268 Finding Summary: In testing of 60 students, 1 student was identified that was notified of the requirement to retu...

Finding 2025-003 Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing: 84.007, 84.033, 84.063, 84.268 Finding Summary: In testing of 60 students, 1 student was identified that was notified of the requirement to return Title IV funds in excess of the amount actually required to be returned. The error was caught by the District, but the student’s account was never corrected to the appropriate amount of the return. Corrective Action Plan: The corrective action for the R2T4 calculation error involved promptly correcting the student's calculation and returning the appropriate funds. To prevent future mistakes, the Director of Financial Aid will review the current R2T4 controls process with staff, which now includes a double review by the Financial Aid Adviser and the Director to catch errors such as typos or miscalculations and to ensure accurate student notifications. After aid adjustments are made, the Director verifies the processed changes for accuracy, and any discovered errors are immediately corrected and documented in the R2T4 file. Responsible Individual(s): Christopher Natelborg Anticipated Completion Date: September 2025

View Audit 385231

Finding 1172097 (2025-002)

Material Weakness 2025

Mt. Hood Community College

OR

Special Tests & Provisions Questioned Costs Student Financial Aid

Finding 2025-002 Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing: 84.007, 84.033, 84.063, 84.268 Finding Summary: In testing of 60 students, 1 student was identified who was not awarded the correct amount of Pe...

Finding 2025-002 Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing: 84.007, 84.033, 84.063, 84.268 Finding Summary: In testing of 60 students, 1 student was identified who was not awarded the correct amount of Pell. Corrective Action Plan: The corrective action for the Pell Grant eligibility issue involved promptly adjusting the affected student's Pell Grant to the correct amount, which resulted in an increase and ensured there was no negative impact. To address the root cause, the Director of Financial Aid met with the financial aid team to review the finding and clarified federal regulations on Pell Grant calculations, referencing the 2024-25 FSA Handbook. Importantly, the Director committed to upgrading the internal Pell Grant calculator used by Financial Aid Advisers: this enhancement will add a flagging mechanism that automatically alerts advisers whenever a student's calculated Pell Grant amount falls below the published minimum Pell amount for that award year, thereby ensuring that no student unintentionally receives an ineligible or reduced Pell Grant due to a calculation oversight. Responsible Individual(s): Christopher Natelborg Anticipated Completion Date: January 2026

View Audit 385231

Finding 1172093 (2025-001)

Material Weakness 2025

Mt. Hood Community College

OR

Special Tests & Provisions Questioned Costs Student Financial Aid

Finding 2025-001 Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing: 84.007, 84.033, 84.063, 84.268 Finding Summary: In testing of 60 students, 3 students did not receive a timely notification of their award from ...

Finding 2025-001 Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing: 84.007, 84.033, 84.063, 84.268 Finding Summary: In testing of 60 students, 3 students did not receive a timely notification of their award from the District. Corrective Action Plan: To address missed disbursement notifications, the Financial Aid team identified affected students and sent the required notices, including an official explanation from the Director of Financial Aid. The issue was traced to a system malfunction during the SU24 term, which has since been resolved by implementing a process that alerts IT and the Director if notification counts do not match disbursement records. The notification script has been enhanced to track missing letters over the previous 30 days, and IT has established a weekly audit comparing sent notifications to disbursement records for accuracy. Additionally, coding updates in the CX system now ensure all disbursements are properly captured, regardless of the date entered by Financial Aid, thereby preventing similar oversights in the future. Responsible Individual(s): Christopher Natelborg Anticipated Completion Date: December 2025

View Audit 385231

Finding 1172060 (2025-002)

Material Weakness 2025

Myrtle Point School District

OR

Reporting Internal Control / Segregation of Duties Significant Deficiency § 200.303

Finding 2025-002 – Internal Control over Compliance – Reporting (Significant Deficiency) CFDA Title and Number 84.354A Qualified Zone Academy Bonds (QZAB) Name of Federal Agency: U.S. Department of Education Compliance/Internal Control over Compliance: Auditee Responsibilities - 87 - Criteria: Unifo...

Finding 2025-002 – Internal Control over Compliance – Reporting (Significant Deficiency) CFDA Title and Number 84.354A Qualified Zone Academy Bonds (QZAB) Name of Federal Agency: U.S. Department of Education Compliance/Internal Control over Compliance: Auditee Responsibilities - 87 - Criteria: Uniform Guidance CFR Part 200.303 requires entities to maintain effective internal control over compliance for federal programs, including accurate financial reporting. GAAP requires proper recognition and disclosure of long-term obligations such as Qualified Zone Academy Bonds (QZAB). In-ternal controls should ensure debt balances are reconciled to lender statements and amortization schedules to prevent misstatement in reports and the SEFA. Condition: Myrtle Point School District No. did not perform routine reconciliations of QZAB debt bal-ances during the fiscal year ended June 30, 2025. The general ledger balance for QZAB differed from the amortization schedule and accrued interest was not updated. No documented review or reconciliation was performed. Failed to report the interest for the QZAB bonds and failed to post the principal pay-ments that were paid from the QZAB for the Flex fund. Entries were required to correct this deficiency in order to complete the audit. Cause: Lack of formal reconciliation procedures and oversight; reliance on outdated schedules without updates. Effect or Potential Effect: Failure to accurately reconcile QZAB balances or amortization records, can result in a risk of material misstatement of liabilities and interest expense for the financial statements; po-tential errors in SEFA reporting when QZAB financed federally funded assets. This could lead to non-compliance with reporting requirements and misclassification of debt-financed assets. Questioned Cost: None reported Repeat of a Prior-Year Finding: Yes Recommendation: We recommend that Myrtle Point School District No. 41 implement a monthly recon-ciliation process for QZAB debt, agreeing general ledger balances to lender statements and amortization schedules, and require documented review and sign-off by the Director of Business Services. District's Response: The District concurs with the recommendation. Corrective Action Plan: The District will implement reconciliations and update the schedules, and inte-grate review into the year-end close process. Planned Implementation Date: January 31, 2026 Responsible Person: Director of Business Services, Myrtle Point School District No. 41

View Audit 385190

Finding 1172058 (2025-002)

Material Weakness 2025

Umpqua Public Transportation District

OR

Procurement, Suspension & Debarment Significant Deficiency Internal Control / Segregation of Duties § 200.318

Finding 2025-002 - Procurement (Significant Deficiency) CFDA Title and Number: 20.513 (5310) Enhanced Mobility of Seniors & Individuals with Disabilities. Name of Federal Agency: Department of Transportation Internal Control over Compliance: Procurement CFDA Title and Number: 20.509 (5311) Operating...

Finding 2025-002 - Procurement (Significant Deficiency) CFDA Title and Number: 20.513 (5310) Enhanced Mobility of Seniors & Individuals with Disabilities. Name of Federal Agency: Department of Transportation Internal Control over Compliance: Procurement CFDA Title and Number: 20.509 (5311) Operating Assistance. Formula Grants for Rural. Name of Federal Agency: Department of Transportation Internal Control over Compliance: Procurement Criteria: 2 CFR Part 200.318(a-k) Numerous procurement regulations exist requiring federal grant awardees to develop and implement internal control policies and procedures related to procurement activities. Condition: The District made expenditures and engaged in contracts without following relevant procurement requirements. Cause: Management and leadership lacked awareness of relevant procurement regulations. Consequently, no internal control policies or procedures related to procurement existed, or policies and procedures existed but were not implemented. Effect or Potential Effect: The lack of effective internal controls over procurement activities had allowed for widespread deficiencies and noncompliant activities, which resulted in the District’s revocation of one award. Questioned Cost: None reported Context: Without proper procurement policies and procedures, the risk of compliance requirement violations is significant. The District failed to meet numerous procurement requirements early in the fiscal year and ultimately lost a significant award for bus acquisitions. Repeat of a Prior-Year Finding: Yes Recommendation: The District should design and implement internal controls related to procurement regulations that will reduce the risk that the District’s procurement activities are not in compliance with federal regulations. District's Response: The District acknowledges the weaknesses and its intention of correcting weaknesses. There has been a change in the General Manager position, to improve the operations, and training of all management, staffing and leadership. The Board has had significant membership change, with new leadership actively engaged in creating a quality internal control and policy environment. Much education and training has occurred during and after fiscal year 2024-2025, up through December 2025, and is ongoing, to meet these goals. Corrective Action Plan: The District acknowledges the weaknesses and its intention of correcting weaknesses. There has been a change in the General Manager position, to improve the operations, and training of all management, staffing and leadership. The Board has had significant membership change, with new leadership actively engaged in creating a quality internal control and policy environment. Much education and training has occurred during and after fiscal year 2024-2025, up through December 2025, and is ongoing, to meet these goals. Planned Implementation Date: December 31, 2025 Responsible Persons: District Board, Umpqua Public Transit District

View Audit 385183

Finding 1172050 (2025-001)

Material Weakness 2025

Nyos Charter School, Inc.

TX

Questioned Costs Cash Management Reporting

Finding 2025-001, Reporting- Significant deficiency in internal controls over compliance Cause: The finding resulted from the lack of a formalized, documented review process to verify the accuracy of claim data between Skyward, PrimeroEdge, and TXUNPS. Historically, the claim reporting relied on sin...

Finding 2025-001, Reporting- Significant deficiency in internal controls over compliance Cause: The finding resulted from the lack of a formalized, documented review process to verify the accuracy of claim data between Skyward, PrimeroEdge, and TXUNPS. Historically, the claim reporting relied on single-entry verification without a defined cross-check procedure or document retention system to confirm alignment across platforms. Corrective Action: NYOS Charter School has implemented a new monthly verification process to ensure accuracy and transparency in the meal count reporting workflow. - The PEIMS Manager will generate the Average Daily Attendance (ADA) report from Skyward each month. - The Food Service Manager will use this report to enter claim data into PrimeroEdge. - The Director of Operations will then cross-reference the claim information from PrimeroEdge with the ADA report from Skyward before entering final claim data into TXUNPS. - Copies of the ADA report, the PrimeroEdge claim summary, and the TXUNPS submission confirmation will be downloaded and stored in the Food Services Google Drive for audit documentation and ongoing internal control review. - Staff involved in this process will receive annual training on verification procedures, documentation standards, and data integrity best practices. Timeline: Updated verification process implemented in October 2025; full rollout and training completed by December 2025. Responsible Party: - Chief of Operations & HR -Director of Operations - PEIMS Manager - Food Service Manager Monitoring: Quarterly internal reviews will be conducted by the Chief of Operations & HR to ensure consistent application of the cross-verification process and proper retention of supporting documentation in the Food Services Google Drive.

View Audit 385161

Finding 1172045 (2025-002)

Material Weakness 2025

Tell City-Troy Township School Corporation

IN

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions § 200.303

FINDING 2025-002 Finding Subject: COVID-19- Education Stabilization Fund – Special Tests and Provisions – Wage Rate Requirements Summary of Finding: State Board of Accounts has asserted that the school corporation did not ensure that the contractor for the elementary building’s roofing project, whic...

FINDING 2025-002 Finding Subject: COVID-19- Education Stabilization Fund – Special Tests and Provisions – Wage Rate Requirements Summary of Finding: State Board of Accounts has asserted that the school corporation did not ensure that the contractor for the elementary building’s roofing project, which was partially funded through a federal ESSER grant, had paid prevailing wage rates on this project. Contact Person Responsible for Corrective Action: Debra Elder, Treasurer and John Scioldo, Superintendent Contact Phone Number and Email Address: 812-547-3300; debbie.elder@tellcity.k12.in.us and john.scioldo@tellcity.k12.in.us Views of Responsible Officials: We concur with the finding.. Description of Corrective Action Plan: While we will agree that the school corporation did not physically have on file and/or review the detailed certified payroll timesheets from Eskola, the awarded contractor for the project, the school corporation had hired in good faith Universal Design Associates (UDA) to manage all facets of the project. UDA has managed other capital improvements on the school’s campus, and their services have been exemplary. A school corporation of our size simply does not have the manpower, resources or expertise to oversee a project of this size, and therefore we rely on the hired project manager/architectural design company to ensure all federal Davis-Bacon wage scale requirements and the construction project as a whole are being fully followed, in addition to their close oversight of the day-to-day project management. The Application to Pay statements for payment to Eskola were provided by, and assumably thoroughly reviewed by, UDA. These pay applications obviously included payment for payroll, again assumably of which UDA checked certified payroll for federal wage compliance. The project was completed in the spring of 2025, and therefore this is no longer an issue. We have determined as a result of this finding that the current school administration will not consider funding future capital projects with federal grants due to the complexities of the involved federal compliance requirements. Anticipated Completion Date: N/A – Based on Corrective Action Plan

View Audit 385149

Finding 1172044 (2025-001)

Material Weakness 2025

Moraine Park Technical College District

WI

Questioned Costs Student Financial Aid Subrecipient Monitoring

Student Financial Aid Cluster – Assistance Listing No. 84.063, 84.007, 84.033 Recommendation: Recommend that the College design and implement controls to ensure that all safeguards for identified risks required by the Gramm-Leach-Bliley Act (GLBA) are fully documented and updated as necessary. Expla...

Student Financial Aid Cluster – Assistance Listing No. 84.063, 84.007, 84.033 Recommendation: Recommend that the College design and implement controls to ensure that all safeguards for identified risks required by the Gramm-Leach-Bliley Act (GLBA) are fully documented and updated as necessary. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Moraine Park Technical College will take or has already taken the following actions to address the audit finding: 1. Updated existing policies and documentation to fully reflect the controls in place to safeguard identified risks under the Gramm-Leach-Bliley Act. 2. Revised and formalized the following documents to ensure they clearly describe current practices and continuous monitoring activities: • Incident Response document • Risk Assessment document • Written Information Security Plan • IT Vulnerability Management Practices document These updates ensure that all existing controls and processes are fully documented, current, and aligned with GLBA requirements. Name(s) of the contact person(s) responsible for corrective action: Larry Plamann, Director of Enterprise Infrastructure Planned completion date for corrective action plan: January 2026

View Audit 385130

Finding 1172003 (2025-001)

Material Weakness 2025

Hamline University of Minnesota

MN

Questioned Costs Student Financial Aid Reporting

Student Financial Assistance – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is...

Student Financial Assistance – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Auditors identified two students for whom enrollment status on the campus level and program level was correctly reported to NSLDS as withdrawal in December 2024; however, both students graduated in March 2025 and that enrollment status was not updated at the campus level or the program level. We have a manual tracking procedure in place for students who complete missing coursework after their last term of enrollment that results in completion of their program. These two students were missed in that process. As a result of this finding, we have reviewed the procedure with the relevant staff and will continue to monitor the process, adding routine spot-checking of this tracking list. Names of the contact persons responsible for corrective action: Gwenn Sherburne, Registrar, and Lynette Wahl, Student Financial Aid Director Planned completion date for corrective action plan: October 31, 2025

View Audit 385101

Finding 1171997 (2025-004)

Material Weakness 2025

Village of Milford, Michigan

MI

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Questioned Costs § 200.303

Condition: The Village did not have adequate controls in place to exercise its oversight responsibility of adherence to wage rate requirements that were reviewed by a contractor for the program. The Village also did not have controls in place to exercise oversight over the same contractor's review o...

Condition: The Village did not have adequate controls in place to exercise its oversight responsibility of adherence to wage rate requirements that were reviewed by a contractor for the program. The Village also did not have controls in place to exercise oversight over the same contractor's review of general and subcontractors for suspension and debarment. Planned Corrective Action: The Village has implemented updated procedures as recommended by the auditors. Contact person responsible for corrective action: Penny Ray Anticipated Completion Date: 12/31/2025

View Audit 385089

Finding 1171970 (2025-004)

Material Weakness 2025

Eureka County, Nevada

NV

Questioned Costs Subrecipient Monitoring Reporting

Finding Summary: The County did not have adequate controls to ensure Special Tests and Provisions requirements were met. The critical information reported did not have the required “Description of Work Performed” included on the reports. Corrective Action Plan: Eureka County will fill in all boxes o...

Finding Summary: The County did not have adequate controls to ensure Special Tests and Provisions requirements were met. The critical information reported did not have the required “Description of Work Performed” included on the reports. Corrective Action Plan: Eureka County will fill in all boxes on the grant report when being submitted to the Nevada Division of Emergency Management. Responsible Individual: Jayme Halpin, Assistant Public Works Director Anticipated Completion Date: Eureka County will amend the past quarterly reports and any future quarterly reports to reflect actual work performed on the report. This will be completed by January 29, 2026.

View Audit 385051

Finding 1171967 (2025-001)

Material Weakness 2025

Children's Hospital of Philadelphia

PA

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.430

2025-001 – Direct Costs-Compensation Grantor: Centers for Disease Control and Prevention - Aids Activity and Coordinating Office (AACO), National Institute of Health Award Name: High Impact HIV Prevention and Surveillance Programs, Research and Development Assistance Listing Number: 93.940, 93.838 A...

2025-001 – Direct Costs-Compensation Grantor: Centers for Disease Control and Prevention - Aids Activity and Coordinating Office (AACO), National Institute of Health Award Name: High Impact HIV Prevention and Surveillance Programs, Research and Development Assistance Listing Number: 93.940, 93.838 Assistance Listing Title: HIV Prevention Activities Health Department Based, Lung Diseases Award Year: July 1, 2024 to June 30, 2025 Award Numbers: CP4043 and CP5043 (2220536), 1OT2HL161847-01 Management’s Views and Corrective Action Plan Management acknowledges the finding related to delayed effort report certification. We recognize the importance of timely and accurate effort reporting as well as ensuring compliance with federal and institutional requirements. Children’s Hospital of Philadelphia Research Institute has implemented a new Effort Compensation Compliance system for effective July 1, 2025. This new system will enhance monitoring of timely effort certifications through automated reminders and greater transparency. With this implementation, training and reference materials will be provided to all personnel involved in effort reporting to ensure they understand the importance of timely certification and the potential impact of delays on grant compliance.

View Audit 385042

Finding 1171943 (2025-001)

Material Weakness 2025

Grange Acres Nonprofit Housing Corporation (phase Ii)

MI

Special Tests & Provisions HUD Housing Programs Significant Deficiency

U.S. Department of Housing and Urban Development Grange Acres Nonprofit (Phase II) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Suite 1 Lansing, MI 4...

U.S. Department of Housing and Urban Development Grange Acres Nonprofit (Phase II) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Suite 1 Lansing, MI 48912 Audit period: July 1, 2024 – June 30, 2025 The finding from the June 30, 2025 schedule of findings and questions costs is discussed below. The finding is numbered consistent with the number assigned in the schedule. Finding Number 2025-001 – Significant Deficiency in Internal Control over Major Federal Program Compliance: Special Tests and Provisions: - Replacement Reserve Requirements Recommendation: The Project should deposit $429 into the replacement reserve account. Additionally, procedures should be followed to ensure management identifies the need for required deposits. Action Taken: The Project has deposited the underfunded amount and will review future HUD communications to identify replacement reserve funding requirements.

View Audit 385022

Finding 1171885 (2025-001)

Material Weakness 2025

Hope Network and Affiliates

MI

Allowable Costs / Cost Principles Cash Management HUD Housing Programs § 200.328 § 200.329

Hope Network acknowledges receipt of the Schedule of Findings and Questioned Costs included in the Single Audit Report dated January 21, 2026, identifying Finding #2025-001: Major Federal Award Finding- Reporting. Hope Network agrees with this finding and the recommended actions to be taken. Correct...

Hope Network acknowledges receipt of the Schedule of Findings and Questioned Costs included in the Single Audit Report dated January 21, 2026, identifying Finding #2025-001: Major Federal Award Finding- Reporting. Hope Network agrees with this finding and the recommended actions to be taken. Corrective Action Plan: Specific Corrective Action: Completion Date File all overdue semiannual performance reports. Completed Submit overdue required written request due upon final funds draw and project completion. Completed Finance department will review all grant agreements to ensure all required reporting, not just financial reports, are tracked and filed in timely within the terms of the grant agreement. 03/31/2026 Finance in conjunction with Hope Network Foundation will review existing grant procedures to develop a uniform process to be utilized across all Hope Network Affiliates. 06/30/2026 We are committed to resolving this issue.

View Audit 384872

Finding 1171881 (2025-001)

Material Weakness 2025

Meridian Community Unit School District No. 101

IL

Questioned Costs Reporting School Nutrition Programs

Finding Type: Significant Deficiency. Name of Contact Person: Dr. Lisa Thomas, Superintendent. Recommendation: We recommend the District expand their internal controls to require a responsible official to review the daily meal count reports for accuracy prior to submission of the reports to the Illi...

Finding Type: Significant Deficiency. Name of Contact Person: Dr. Lisa Thomas, Superintendent. Recommendation: We recommend the District expand their internal controls to require a responsible official to review the daily meal count reports for accuracy prior to submission of the reports to the Illinois State Board of Education. Corrective Action: Daily meal counts will be rectified by administration on a monthly basis. Proposed Completion Date: Immediately.

View Audit 384861

Finding 1171860 (2025-001)

Material Weakness 2025

The Russell Child Development Center, Inc.

KS

Questioned Costs Cash Management Eligibility

2025-001 - Child and Adult Care Food Program - Eligibility Condition Six providers received an improper amount for their meal reimbursement for the month tested. A seventh provider did not have the proper documentation on file to support their Tier determination. Recommendation Controls should be re...

2025-001 - Child and Adult Care Food Program - Eligibility Condition Six providers received an improper amount for their meal reimbursement for the month tested. A seventh provider did not have the proper documentation on file to support their Tier determination. Recommendation Controls should be reviewed and updated to ensure that reimbursements are only requested for complete and accurate meals counts at the correct rate of reimbursement, and that only eligible participants are submitted to the State for reimbursement. Comments on the Finding Recommendation The CACFP at The Russell Child Development Center acknowledges the findings and understands the importance of ensuring that all meal reimbursements are based on complete, accurate meal counts and correct reimbursement rates, and that Tier determinations are fully supported by proper documentation. Action Taken: As of October 31 , 2025, Russell Child Development Center, has ceased participation in the Child and Adult Care Food Program. During the final grant award year, CACFP staff reviewed and updated Tier Determination forms and supporting documentation when it was identified that documentation was missing or incomplete. In addition, staff corrected provider license types within the CACFP files when discrepancies were identified to ensure accurate reimbursement rates. No further claims have been submitted since the program's closure. All CACFP-related records, including Tier documentation, meal count records, and reimbursement data, will be retained for the required record-keeping timeframe in accordance with federal and state regulations.

View Audit 384834

Finding 1171849 (2025-002)

Material Weakness 2025

Legacy Community Health Services, Inc.

TX

Questioned Costs Eligibility Internal Control / Segregation of Duties

The Organization acknowledges the identified gap and concurs with the finding. The issue occurred due to a lack of verification of whether the patient had active eligibility or not. Steps have been implemented to remedy the issue in FY 2026. The Director of Financial Services-IAT reporting team is e...

The Organization acknowledges the identified gap and concurs with the finding. The issue occurred due to a lack of verification of whether the patient had active eligibility or not. Steps have been implemented to remedy the issue in FY 2026. The Director of Financial Services-IAT reporting team is enhancing training and communication to improve understanding of eligibility and documentation requirements. Furthermore, procedures will be implemented to systematically monitor all medications billed to Ryan White and State HIV Services Programs, as well as verify participants' current eligibility status on a biweekly basis. The organization expects these processes to run efficiently by April 30th, 2026.

View Audit 384790

Finding 1171710 (2025-002)

Material Weakness 2025

Vista Prairie at Garnette Gardens

MN

Special Tests & Provisions Questioned Costs Procurement, Suspension & Debarment

A transfer back of $23,000 for the excess surplus cash was made on 8/27/25. It was our first time taking out surplus cash and now have a better process in place to correct this going forward.

View Audit 384739

Finding 1171709 (2025-001)

Material Weakness 2025

Vista Prairie at Garnette Gardens

MN

Reporting Significant Deficiency Internal Control / Segregation of Duties

It is not cost effective to have an internal control system designed to provide for the preparation of the financial statements and accompanying notes. We requested that our auditors, Eide Bailly LLP, prepare the financial statements and the accompanying notes to the financial statements as a part o...

It is not cost effective to have an internal control system designed to provide for the preparation of the financial statements and accompanying notes. We requested that our auditors, Eide Bailly LLP, prepare the financial statements and the accompanying notes to the financial statements as a part of their annual audit. We have designated a member of management to review the drafted financial statements and accompanying notes.

View Audit 384739

Finding 1171680 (2025-001)

Material Weakness 2025

Madison County Health Department

KY

Cash Management Internal Control / Segregation of Duties

We will continue to work with the Department for Public Health and will load opening balances of assets, liabilities and fund balances once approved by the Department for Public Health.

View Audit 384696

Finding 1171385 (2025-002)

Material Weakness 2025

Contra Costa Community College District

CA

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Views of Responsible Officials and Corrective Action Plan The District has reviewed the current R2T4 procedures and taken corrective measures to strengthen internal controls over the Return of Title IV calculations to ensure that funds are returned in a timely manner. 1. Process Review: All Financia...

Views of Responsible Officials and Corrective Action Plan The District has reviewed the current R2T4 procedures and taken corrective measures to strengthen internal controls over the Return of Title IV calculations to ensure that funds are returned in a timely manner. 1. Process Review: All Financial Aid staff involved in the R2T4 process have reviewed the Overpayments-R2T4 Policy and Procedure to ensure a full understanding of each step and to continue to comply with federal timelines and documentation requirements. 2. Monitoring and Accountability: The Financial Aid Office will conduct a review of the return of Title IV calculations and ensure that the funds are returned to the ED within 45 days after the institution determines that the student withdrew. 3. Ongoing Evaluation: The Overpayments-R2T4 Policy and Procedure will be reviewed periodically by the Districtwide Financial Aid Directors Workgroup to ensure continued compliance and effectiveness of internal controls.

View Audit 384667

Finding 1171360 (2025-003)

Material Weakness 2025

South Putnam Community School Corporation

IN

Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

FINDING 2025-003 Finding Subject: COVID-19 - Education Stabilization Fund - Reporting Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U Federal Award Number(s) and Year(s) (or Other Identifying Numbers): S425...

FINDING 2025-003 Finding Subject: COVID-19 - Education Stabilization Fund - Reporting Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U Federal Award Number(s) and Year(s) (or Other Identifying Numbers): S425D200013, S425U200013 Audit Finding: Significant Deficiency This is a repeat finding from the immediately prior audit report. The prior finding number was 2023-003. Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation was required to submit annual data reports to the Indiana Department of Education via JotForm, a form/report builder. Data to be submitted included, but was not limited to, current period expenditures, prior period expenditures, and expenditures per activity. During the prior audit period, the School Corporation submitted two ESSER I reports, two ESSER II reports, and two EESER III reports, for a total of six reports. The Superintendent of Schools submitted all the reports without an oversight or review process in place to prevent, detect and correct errors. As a follow up in the current audit period, it was found that this issue was not resolved. The lack of internal controls was a systematic issue throughout the audit period. . Contact Person Responsible for Corrective Action: Erin Roach Contact Phone Number and Email Address: 765-653-3119 eroach@sputnam.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The grants director will print out the reports for review and approval prior to submission. Anticipated Completion Date: February, 2026

View Audit 384655

Finding 1171332 (2025-001)

Material Weakness 2025

Mental Health Mental Retardation Authority of Brazos Valley

TX

Reporting Internal Control / Segregation of Duties

Audit Finding 2025-1: During the audit it was noted that certain general ledger accounts were not analyzed and reconciled on a timely basis. Management Response: The Center has continued to experience turnover in key accounting positions. New programs with new software updates have required addition...

Audit Finding 2025-1: During the audit it was noted that certain general ledger accounts were not analyzed and reconciled on a timely basis. Management Response: The Center has continued to experience turnover in key accounting positions. New programs with new software updates have required additional staff training. The Medicaid Eligibility Renewal process by the State now has Renewals required every 12 months while prior to covid the Medicaid Program Renewals were required every 24 months. This has caused serious issues with the reconciliation process for Several of our Medicare, Medicaid, HCS and TXHMLV Accounts. We booked conservatively what we thought we could anticipate for Revenues assuming that we would begin receiving Reinstatement of Benefits at a somewhat regular Renewal Rate. We are allowed to back bill at least 90 days once approval is given. The Renewal Process is taking way longer than it used to, significantly complicating the reconciliation process, especially at year end with the need for separation of Revenue by Fiscal Years (matching process of Revenue with the same period Expenditures) Management will continue to train existing employees on significant accounting issues and IDD Management has recently begun using the Medicaid Lost Report to better anticipate lapses in upcoming Renewals of Consumers. We will also begin closing out our billings for the prior Fiscal Year earlier than we currently do. Any prior billings (Rebills) occurring after this established cutoff date (Medicare/Medicaid) will be reflected in the current year’s revenue and receivable balances. Name and Title of contact person responsible for corrective action: Dan Monson, CFO, 1504 S Texas Avenue. Bryan, TX 77802, 979-361-9802, Employer Identification Number: 74-1793265

View Audit 384621

Finding 1171321 (2025-001)

Material Weakness 2025

Craven County

NC

Eligibility Internal Control / Segregation of Duties Questioned Costs

Board of Commissioners Administration Building Jason R. Jones, Chairman 406 Craven Street Dennis Bucher, Vice Chairman New Bern, NC 28560 Thomas F. Mark George S. Liner Fax 252-637-0526 Theron L. McCabe jveit@cravencountync.gov Ettienne “E.T.” Mitchell Beatrice R. Smith Administrative Staff Jack B. ...

Board of Commissioners Administration Building Jason R. Jones, Chairman 406 Craven Street Dennis Bucher, Vice Chairman New Bern, NC 28560 Thomas F. Mark George S. Liner Fax 252-637-0526 Theron L. McCabe jveit@cravencountync.gov Ettienne “E.T.” Mitchell Beatrice R. Smith Administrative Staff Jack B. Veit III, County Manager Commissioners 252-636-6601 Gene Hodges, Assistant County Manager Manager 252-636-6600 Nan Holton, Clerk to the Board Finance 252-636-6603 Amber M. Parker, Human Resources Director Human Resources 252-636-6602 Craig Warren, Finance Director None Reported. Finding 2025-001 Inaccurate Information Entry Name of contact person: Corrective Action: Proposed completion date: April Rollins, Medicaid Program Manager Policy refresher training will be held by December 31, 2025. Refresher training for staff that files should be reviewed internally to ensure proper documentation is in place for eligibility determination. Workers will receive refresher training what files should contain and the importance of complete and accurate record keeping. Staff will have refresher training that all files include online verifications; documented resources of income and those amounts agree to information in NC FAST. The results found or documentation made in case notes should clearly indicate what actions were performed and the results of those actions. Second party reviews of at least or in excess of the state’s mandated 98 cases will be conducted quarterly. The second party review threshold for staff is 90%. Any errors will be discussed one on one by the supervisor with the employee to ensure the employee has a full understanding of policies and procedures. Supervisors will review error trends every quarter to determine if further group training is needed. The Learning Gateway trainings have also been completed in the past 180 days for all Medicaid staff will further assist with retaining staff. 12/31/2025 Corrective Action Plan For the Year Ended June 30, 2025 Section II - Financial Statement Findings Section III - Federal Award Findings and Questioned Costs 188

View Audit 384595

Finding 1171320 (2025-005)

Material Weakness 2025

Eastern Greene Schools

IN

Special Tests & Provisions Subrecipient Monitoring Material Weakness § 200.208 § 200.303

FINDING 2025-005 Finding Subject: Title I Grants to Local Educational Agencies – Special Tests and Provisions – Assessment System Security Contact Person Responsible for Corrective Action: Superintendent and Title I Program Director Mr. Todd Tanksley Contact Phone Number and Email Address: 812-849-4...

FINDING 2025-005 Finding Subject: Title I Grants to Local Educational Agencies – Special Tests and Provisions – Assessment System Security Contact Person Responsible for Corrective Action: Superintendent and Title I Program Director Mr. Todd Tanksley Contact Phone Number and Email Address: 812-849-4481 – tanksleyto@mitchell.k12.in.us Views of Responsible O􀆯icial: We concur with the finding. Description of Corrective Action Plan The School Corporation has implemented enhanced internal control procedures to ensure compliance with Assessment System Security requirements and applicable state and federal regulations. E􀆯ective immediately, the School Corporation will: 1. Require all employees who administer, handle, or have access to secure test materials to complete annual assessment security training in accordance with the Indiana Assessment Policy Manual. 2. Require all such employees to sign the Indiana Testing Security and Integrity Agreement annually by an established deadline. INDIANA STATE BOARD OF ACCOUNTS 34 3. Establish a standardized process to collect, review, and retain signed testing security agreements at the building level. 4. Maintain a centralized tracking log of all employees required to complete training and sign agreements. 5. Conduct an annual verification review to ensure that all required documentation is complete prior to the testing window. 6. Retain all assessment security training documentation and signed agreements in accordance with federal record retention requirements under 2 CFR 200.334. Planned Evidence of Correction The School Corporation will maintain the following documentation as evidence of corrective action: ● Annual assessment security training agendas and attendance record ● Signed Indiana Testing Security and Integrity Agreements for all applicable sta􀆯 ● Centralized tracking logs indicating completion of training and agreement signatures ● Building-level verification checklists signed and dated by administrators ● Written internal procedures related to assessment system security compliance Anticipated Completion Date Implemented and ongoing beginning with the FY2026 assessment cycle.

View Audit 384594

Corrective Action Plans

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