Corrective Action Plans

Finding 1201473 (2025-004)

Material Weakness 2025

NC

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Return of Title IV (R2T4) Funds Recommendation: We recommend the University review the R2T4 requirements and ensure their process incorporates a review of students to ensure no calculations are missed that should be performed. Explanation of disagreement with audit finding: There is no disagreement ...

Return of Title IV (R2T4) Funds Recommendation: We recommend the University review the R2T4 requirements and ensure their process incorporates a review of students to ensure no calculations are missed that should be performed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will take action to comply with this recommendation. Name(s) of the contact person(s) responsible for corrective action: Director of Financial Aid Deniesha Newby

View Audit 396041

Finding 1201469 (2025-001)

Material Weakness 2025

Maranatha Baptist University

WI

Student Financial Aid Eligibility Significant Deficiency

U.S. Department of Education Maranatha Baptist University (the University) respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 01, 2024 to June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The...

U.S. Department of Education Maranatha Baptist University (the University) respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 01, 2024 to June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Education 2025-001 Student Financial Assistance Cluster – Assistance Listing No. 84.007, 84.063 & 84.268 Recommendation: We recommend that the University maintain documentation of both formal and informal award notifications in their financial aid software to ensure all necessary communications are made. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University Financial Aid Office will add a step in the awarding process to verify that award emails are sent and are documented in the system. Name of the contact person responsible for corrective action: Donald Donovan, Chief Financial Officer Planned completion date for corrective action plan: June 30, 2026 *** If the U.S Department of Education has questions regarding this plan, please call Donald Donovan, Chief Financial Officer, at 920-206-2314.

View Audit 396040

Finding 1201466 (2025-001)

Material Weakness 2025

Scripps Health and Affiliates

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Corrective Action Plan Corrective Action Plan – Uniform Guidance Audit Finding Organization: Scripps Health and Affiliates Federal Agency: U.S. Department of Homeland Security Pass-Through Agency: California Governor’s Office of Emergency Services UEI Number: JJRCL53EXL36 Audit Period: Year Ended Se...

Corrective Action Plan Corrective Action Plan – Uniform Guidance Audit Finding Organization: Scripps Health and Affiliates Federal Agency: U.S. Department of Homeland Security Pass-Through Agency: California Governor’s Office of Emergency Services UEI Number: JJRCL53EXL36 Audit Period: Year Ended September 30, 2025 Finding Reference Number: 2025-001 Federal Program: COVID-19 – Disaster Grants – Public Assistance (Presidentially Declared Disasters) Assistance Listing Number: 97.036 Finding Summary: The organization did not employ an adequate internal control review of payroll expenditures to support activities allowed or unallowed and allowable costs/cost principles related to payroll expenditures reimbursed for the project worksheet. Corrective Action Plan: Additional internal controls to ensure payroll expenditures are reviewed were implemented in late fiscal year 2022 by adopting a new approach to ensure compliant timekeeping. The new approach includes the following steps: revised the timekeeping policy to clarify employee and manager responsibilities, modified “failure to comply” provisions, deployed educational programs for both management and staff, reviewed/improved Kronos and UKG Pro Time and Attendance system automated notifications, and training resources have been available to management and staff via our Scripps intranet site. Leadership monitors policy compliance by individual employee and managers via systemwide reporting on a biweekly basis. Responsible Officials & Contact Person: Brett Tande, Executive Vice President & Chief Financial Officer Scripps Health and Affiliates Expected Completion Date: Completed in fiscal year 2022. As the expenditures in the project worksheet were incurred from the beginning of the COVID-19 pandemic, the corrective action plan put in place during 2022 could not previously remediate the project; however, all payroll expenditures incurred after the end of fiscal year 2022 have these corrective actions in place.

View Audit 396036

Finding 1201465 (2025-001)

Material Weakness 2025

Rockingham County

NC

Eligibility Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2025 Finding: 2025-001 Name of contact person: Corrective Action: Proposed Completion Date: Section III – Federal Award Findings and Questioned Costs All identified cases are being reviewed and corrected to ensure compliance. Supervisors will conduc...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2025 Finding: 2025-001 Name of contact person: Corrective Action: Proposed Completion Date: Section III – Federal Award Findings and Questioned Costs All identified cases are being reviewed and corrected to ensure compliance. Supervisors will conduct targeted refresher training on income and resource calculation, SSI termination procedures, and redetermination timeliness and procedures. Regular quality assurance reviews and staff support will continue to ensure sustained compliance and improved accuracy in case processing. Training will be completed by December 15, 2025. Corrective actions for finding 2025-001 also apply to the State Awards findings. Section IV – State Award Findings and Questioned Costs Lisa Chaney, Nicole Victory and Debbie McGuire - Medicaid Supervisors; Mandy Edwards - Medicaid Manager 189

View Audit 396035

Finding 1201464 (2025-003)

Material Weakness 2025

Hertford County

NC

Eligibility Internal Control / Segregation of Duties Material Weakness

Corrective Action Plan For the Year Ended June 30, 2025 Finding 2025-003 Name of contact person: Corrective Action: The County acknowledges the material weakness identified in the Medicaid eligibility determination process and agrees with the audit finding. To address the deficiencies noted, the Cou...

Corrective Action Plan For the Year Ended June 30, 2025 Finding 2025-003 Name of contact person: Corrective Action: The County acknowledges the material weakness identified in the Medicaid eligibility determination process and agrees with the audit finding. To address the deficiencies noted, the County will strengthen internal controls related to eligibility determinations by implementing a comprehensive, county-wide corrective action strategy focused on staff competency, supervisory oversight, and process standardization. First, the County will enhance training for all staff involved in Medicaid eligibility determinations. This training will reinforce program requirements and applicable State Medicaid manuals, with specific emphasis on income and resource verification, household composition, timely requests for information, redetermination timeframes, and proper handling of SSI terminations. Refresher trainings will be conducted regularly, and training materials will be updated to reflect current policy and procedural changes. Second, the County will formalize and strengthen its internal case review and quality assurance processes. Supervisory reviews will be conducted routinely to ensure eligibility determinations are accurate, complete, and compliant with federal and state guidelines. Identified errors will be documented, corrected timely, and used as coaching opportunities to prevent recurrence. Management will monitor trends in errors to assess effectiveness of corrective actions and adjust oversight efforts as needed. Anetre Vaughan, Adult Medicaid Supervisor and Jacqueline Boyd, Family and Children's Medicaid Supervisor Section III - Federal Award Findings and Question Costs BUILD YOUR FUTURE ON OUR FOUNDATION 115 Justice Drive  Suite 1  Winton, North Carolina 27986 Office 252.358.7805  Facsimile 252.358.0198  www.HerfordCountyNC.gov 116

View Audit 396031

Finding 1201461 (2025-001)

Material Weakness 2025

Edgewood College, Inc.

WI

Special Tests & Provisions Student Financial Aid Reporting

Condition: We selected a sample of 25 students that had a change in status. One of the students information was not reported to NSLDS timely, however the College’s controls did detect the error outside the required timeframe, and the error was corrected. We expanded our sample to 50 students. We fou...

Condition: We selected a sample of 25 students that had a change in status. One of the students information was not reported to NSLDS timely, however the College’s controls did detect the error outside the required timeframe, and the error was corrected. We expanded our sample to 50 students. We found another instance of a student’s information not reported timely, however management did eventually detect and correct the error outside the required timeframe. Corrective Action planned: Management agrees and has implemented necessary procedures/controls to ensure the College is in compliance with enrollment requirements. Management has corrected the student’s change status not previously reported. Name(s) of Contact Person(s) Responsible for Corrective Action: {Jennifer Young, Director of Financial Aid and Edgewood Central, and Katelyn Peters, Student Service Specialist.} Anticipated Completion Date: Has already began as of the audit. Staff turnover occurred, have replaced the Student Service Specialist position - now have second point on NSC reporting.

View Audit 396008

Finding 1201452 (2025-001)

Material Weakness 2025

Heartwood AZ dba Heartwood Montessori

AZ

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.302 § 200.403

2025-001 Unallowable Costs Planned Corrective Action Plan: Heartwood agrees with the finding and acknowledges that two expenditures charged to the Preschool Development Grants (PDG) program were determined to be unallowable under Federal cost principles. To address this issue and prevent similar occ...

2025-001 Unallowable Costs Planned Corrective Action Plan: Heartwood agrees with the finding and acknowledges that two expenditures charged to the Preschool Development Grants (PDG) program were determined to be unallowable under Federal cost principles. To address this issue and prevent similar occurrences in the future, Heartwood will implement the following corrective actions: 1. Enhanced Review Procedures Heartwood will implement additional review procedures for expenditures charged to Federal programs to ensure that all costs are evaluated for allowability under Uniform Guidance (2 CFR §200.403) and the specific terms and conditions of the PDG grant prior to being charged to the grant. 2. Training for Program and Fiscal Staff Program administrators and fiscal staff responsible for processing or approving grant expenditures will receive training on Federal cost principles and allowable expenditures under Uniform Guidance and the PDG program requirements. 3. Monitoring and Oversight Heartwood will require periodic supervisory review of grant expenditures to confirm that costs charged to the program are properly supported, reasonable, and allowable. 4. Review of Current-Year Expenditures Heartwood will review other expenditures charged to the PDG program during the fiscal year to determine whether additional unallowable costs were incurred and will take appropriate corrective action if necessary. 5. Disposition of Questioned Costs Heartwood will work with the pass-through entity or Federal awarding agency to determine the appropriate disposition of the questioned costs totaling $1,467.53, which may include reimbursement to the grant if required. Anticipated Completion Date: December 31, 2026 Responsible Contact Person: Sherri Sampson, Executive Director

View Audit 395999

Finding 1201451 (2025-001)

Material Weakness 2025

City of Somerville

MA

Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.302

Condition: The subsidiary ledger for loans funded by the Federal award programs maintained by the Department did not agree to the City’s general ledger. Corrective Action Planned: The City is actively evaluating a Loan Servicing software package to replace the current offline subledger and anticipat...

Condition: The subsidiary ledger for loans funded by the Federal award programs maintained by the Department did not agree to the City’s general ledger. Corrective Action Planned: The City is actively evaluating a Loan Servicing software package to replace the current offline subledger and anticipate on implementing it in fiscal year 2027. Going forward, Office of Strategic Planning and Community Development (OSPCD) Finance in conjunction with the Auditing Department will train the OSPCD program director and staff on the agreed standard methodology and criteria for recording and reporting new loans and payments in both the subledger and MUNIS. Loan activity will be reconciled to the general ledger to ensure compliance each fiscal year. The City will continue to research discrepancies for CDBG and HOME, make necessary adjustments and plans on resolving the remaining variances in these two program accounts. Anticipated Completion Date: September of 2026 Contact: Alan Inacio, OSPCD Director of Finance and Administration

View Audit 395989

Finding 1201444 (2025-007)

Material Weakness 2025

County of Orange, California

CA

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Program: Housing Voucher Cluster Federal Financial Assistance Listing Number: 14.871 / 14.879 Federal Grantor: U.S. Department of Housing and Urban Development Award No. and Year: Multiple Compliance Requirements: Special Tests and Provisions – HQS Enforcement Type of Finding: Significant Deficiency...

Program: Housing Voucher Cluster Federal Financial Assistance Listing Number: 14.871 / 14.879 Federal Grantor: U.S. Department of Housing and Urban Development Award No. and Year: Multiple Compliance Requirements: Special Tests and Provisions – HQS Enforcement Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: The 2025 OMB Compliance Supplement requires that for dwellings under Housing Assistance Payment (HAP) contracts that fail a Housing Quality Standards (HQS) inspection, the County must enforce HQS requirements. Specifically, upon notification that a unit has failed HQS, the County must inspect the unit within 15 days to confirm the deficiency and notify the owner if the deficiency is confirmed. Once notified, the owner is required to make the necessary repairs within the prescribed time frame. If the owner does not correct the cited HQS deficiencies within the specified correction period, the County must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: For one sample selected for testing, the County did not timely enforce HQS requirements. Cause: The cause of the finding was an administrative oversight that resulted in delays in issuing the final inspection notice following a missed inspection appointment. The County’s existing procedures did not adequately ensure timely follow-up and escalation when an inspection resulted in a noshow. Effect: Because the required inspection and notification were not completed timely, the County did not fully comply with the HQS enforcement requirements. This delay increased the risk that housing assistance payments could continue for a unit that did not meet HUD’s minimum housing quality standards, potentially affecting program compliance and participant health and safety. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of sixty (60) out of a total population of 1,029 instances of failed HQS were selected. The condition noted above was identified during our procedures related to special tests and provisions – HQS enforcement. Repeat Finding from Prior Years: No. Recommendation: We recommend the County strengthen its HQS enforcement procedures by implementing controls to ensure timely follow-up on failed inspections, including missed appointments. Such controls may include automated tracking of inspection deadlines, supervisory review of no-show appointments, and escalation procedures to ensure owners are notified within required time frames. Management Response and Corrective Action Plan: 1. Person Responsible: Linda Tarzjani, Leasing Manager 2. Corrective action plan: Concur. We will strengthen our HQS enforcement procedures by implementing controls to ensure timely follow-up on failed inspections, including missed appointments. In doing so we will consider automated tracking of inspection deadlines, supervisory review of noshow appointments, and escalation procedures to ensure owners are notified within required time frames. 3. Anticipated Implementation date: February 1, 2026

View Audit 395982

Finding 1201438 (2025-003)

Material Weakness 2025

County of Orange, California

CA

Subrecipient Monitoring Material Weakness Reporting

Program: Community Development Block Grant Federal Financial Assistance Listing Number: 14.218 Federal Grantor: U.S. Department of Housing and Urban Development Award No. and Year: B-24-UC-06-0504 and 2025; B-20-UW-06-0504 and 2021 Compliance Requirements: Reporting Type of Finding: Material Weaknes...

Program: Community Development Block Grant Federal Financial Assistance Listing Number: 14.218 Federal Grantor: U.S. Department of Housing and Urban Development Award No. and Year: B-24-UC-06-0504 and 2025; B-20-UW-06-0504 and 2021 Compliance Requirements: Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Instance of Noncompliance Criteria: CFR Appendix A to Part 170I(a)(2), Reporting Requirements, states the recipient must report each subaward to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the end of the month following the month in which the subaward was issued. Condition: During our testing of the County’s compliance with reporting requirements, we noted the County did not submit the required subaward data to FSRS. Cause: The department was unaware of this compliance requirement. Effect: Reports were not submitted to FSRS in accordance with the reporting requirements per Appendix A to Part 170I(a)(2). Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling : We identified that the FFATA reporting was not completed as required by 2 CFR Part 170 for the following instances: (Refer to Chart/Table to Finding 2025-003) Repeat Finding from Prior Years: No. Recommendation: We recommend that the County adhere to their policies and procedures in accordance with 2 CFR Appendix A to Part 170I(a)(2). Management Response and Corrective Action Plan: 1. Person Responsible: Francisco Padilla, Community Development Analyst 2. Corrective action plan: Concur. We will adhere to our policies and procedures to ensure reports are submitted to FSRS in accordance with 2 CFR Appendix A to Part 170I(a)(2). 3. Anticipated Implementation date: April 30, 2026

View Audit 395982

Finding 1201405 (2025-004)

Material Weakness 2025

County of Orange, California

CA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.430

Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Financial Assistance Listing Number: 10.557 Federal Grantor: U.S. Department of Agriculture Pass-Through: California Department of Public Health Award No. and Year: 22-10270 A03 and 2022 Compliance Requireme...

Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Financial Assistance Listing Number: 10.557 Federal Grantor: U.S. Department of Agriculture Pass-Through: California Department of Public Health Award No. and Year: 22-10270 A03 and 2022 Compliance Requirements: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Section 200.430, Compensation – Personal Services, states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing of the HCA’s provisions for activities allowed or unallowed and allowable costs/cost principles requirements, we noted that for one (1) of sixty (60) payroll samples tested, the employee was able to review and approve their own timecard. Cause: It was determined that the control deficiency resulted from a system configuration error that permitted the employee to approve their own timecard under the supervisor/manager review role. Effect: Failure to consistently apply internal controls over payroll charges increases the risk that unallowable or unsupported payroll costs could be charged to the Federal program and not be detected in a timely manner. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sampling of sixty (60) timecards was selected for testing out of a population of 1,144. The condition noted above was identified during our procedures related to activities allowed or unallowed and allowable costs/cost principles. Repeat Finding from Prior Years: No. Recommendation: Management should ensure appropriate segregation of duties within the payroll system by restricting approval authority to independent supervisors or managers and implementing controls to prevent self-approval. In addition, management should periodically review user access roles and system configurations to confirm that approval controls are operating as designed and that payroll charges to Federal programs are allowable, properly allocated, and adequately supported. Management Response and Corrective Action Plan: 1. Person Responsible: Barbara Harano, HCA Disbursements Manager 2. Corrective action plan: An unexpected change occurred in the OC Time system that allowed an employee to both submit and approve their own timesheet. This issue had been previously reported and resolved. Auditor-Controller IT has reported the issue again to the timekeeping system vendor and is currently validating and testing the updated configuration to ensure the problem does not recur. 3. Anticipated Implementation date: June 30, 2026

View Audit 395982

Finding 1201390 (2025-002)

Material Weakness 2025

Tuba City Unified School District No.15

AZ

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Significant Deficiency

CORRECTIVE ACTION PLAN U.S. Department of Education | Arizona Department of Education Tuba City Unified School District No. 15 respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of find...

CORRECTIVE ACTION PLAN U.S. Department of Education | Arizona Department of Education Tuba City Unified School District No. 15 respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINANCIAL STATEMENT FINDINGS 2025-001 INFORMATION TECHNOLOGY Type of Finding: Material Weakness in Internal Control Over Financial Reporting Condition/Context: The District did not establish internal control procedures over information technology systems to ensure proper protection of District and student data. The following control deficiencies were noted regarding the District’s information technology policies and procedures: • The District did not limit access within the District’s accounting software to only those areas in each employee’s job function. Several employees had full administrative access to the accounting software, including third-party consultants, without compensating manual controls. • The District did not have a formal written policy regarding system or software changes. • Data-sharing agreements with third party provides that had access to the District’s data were not provided. • Documentation was not provided to support that the IT systems generated electronic audit trail reports or change logs were being reviewed or analyzed. This would include systemgenerated incident or error reports. • Disaster recovery and contingency plans were not provided. Recommendation: To strengthen internal controls, the District should evaluate its procedures regarding information technology security. The District should review and establish IT policies and procedures to protect the District’s data, train employees, establish backup plans, disaster recover or contingency plans, and 3rd party security and data confidentiality agreements. System general irregularity reports, including incident or error reports should be reviewed on an ongoing basis. Corrective Action: The District will evaluate its procedures regarding information technology security. The District will review and establish IT policies and procedures to protect the District’s data, disaster recovery or contingency plans, and 3rd party security and data confidentiality agreements. Additionally, the District will review system generated irregularity reports, including incident or error reports on an ongoing basis. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Leah Begay, Business Manager

View Audit 395963

Finding 1201389 (2025-004)

Material Weakness 2025

Southern Oregon University

OR

Student Financial Aid Eligibility Significant Deficiency

Eligibility - Direct Loan Awarding Federal Direct Student Loans (84.268) Recommendation: We recommend that the University enhance its policies and procedures related to the packaging and awarding of financial aid, particularly in situations requiring manual calculations or professional judgment, to ...

Eligibility - Direct Loan Awarding Federal Direct Student Loans (84.268) Recommendation: We recommend that the University enhance its policies and procedures related to the packaging and awarding of financial aid, particularly in situations requiring manual calculations or professional judgment, to ensure student eligibility is accurately determined and awards are properly calculated. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Effective immediately, we've added a required review step for any aid package that is adjusted using professional judgment. This review focuses specifically on confirming that annual loan limits and subsidized eligibility are recalculated correctly after any change. Staff has also received refresher training on subsidized loan eligibility and amounts, and how to verify that the correct amount is awarded when appropriate. In addition, we will incorporate periodic spot checks of files involving manual adjustments to ensure calculations are accurate and consistent. Name(s) of the contact person(s) responsible for corrective action: Erica Riggs Planned completion date for corrective action plan: Spring 2026, ongoing.

View Audit 395962

Finding 1201373 (2025-003)

Material Weakness 2025

University of San Diego

CA

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.313

Corrective Action Plan – Management concurs with this finding. The Controller’s Office has designated a Grants & Contracts Accountant as the primary manager, with the Controller serving as the secondary manager. The primary manager will be responsible for coordinating the inventory process and ensur...

Corrective Action Plan – Management concurs with this finding. The Controller’s Office has designated a Grants & Contracts Accountant as the primary manager, with the Controller serving as the secondary manager. The primary manager will be responsible for coordinating the inventory process and ensuring that a physical inventory is completed by the end of every other fiscal year. The secondary manager will verify completion and support the primary manager, as needed. Inventory procedures will be updated to reflect this change and will be reviewed for best practices and regulatory changes. In addition, the physical inventory task will be incorporated into the annual year-end checklist reviewed by the Vice President of Finance’s Office and the Controller’s Office. Management considers these steps sufficient to ensure compliance with the biennial inventory requirement. Anticipated completion date: June 2026 Persons responsible: Maria G. Sanchez, Controller

View Audit 395955

Finding 1201312 (2025-001)

Material Weakness 2025

University of San Diego

CA

Special Tests & Provisions Student Financial Aid Reporting

Corrective Action Plan – Management concurs with this finding. The exceptions resulted from two distinct scenarios: 1) An official withdrawal processed manually outside the standardized workflow. 2) An unofficial withdrawal triggered by a grade change submitted after the final grade deadline. In Fal...

Corrective Action Plan – Management concurs with this finding. The exceptions resulted from two distinct scenarios: 1) An official withdrawal processed manually outside the standardized workflow. 2) An unofficial withdrawal triggered by a grade change submitted after the final grade deadline. In Fall 2024, an undergraduate student’s official withdrawal was completed late in the semester. The Dean requested a Torero Hub Counselor to manually remove the course, bypassing the standardized workflow. While the Counselor notified the Registrar’s Office, the Office of Financial Aid was not included in the communication chain. To address this gap, the Office of Financial Aid will implement a biweekly report to monitor and verify any changes to student withdrawal statuses that fall outside the automated workflow. Management believes this enhancement will effectively prevent similar errors in the future. The second exception involved a Professional and Continuing Education (PCE) student. After the final grade submission deadline, the instructor updated the student’s grade to an ‘F’, which retroactively classified the student as an unofficial withdrawal. This change occurred after the Office of Financial Aid had already run the final Fall 2024 unofficial withdrawal report. PCE has been notified that grade changes are not permitted after the final grade deadline. Additionally, the Office of Financial Aid will now run the unofficial withdrawal report biweekly beyond the final grade due date to identify and verify any late changes to student withdrawal statuses. Management believes these measures will mitigate the risk of future occurrences. Completion date: September 2025 Persons responsible: Kellie Nehring, Director of Financial Aid and Diana Hannasch-Haag, Director of Retention – Online Degree Programs

View Audit 395955

Finding 1201299 (2025-007)

Material Weakness 2025

State of Hawaii, Department of Accounting and General Services

HI

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness

Finding No. 2025-007 ALN No. 11.419 Program Title: Hawaii Coastal Zone Management Program Grant Award No.: NA22NOS4190022 NA23NOS4190139 NA24NOSX419C0023 NA22NOS4190065 Condition Accuity noted that the State did not submit FFATA reports for most of the active grant agreements open for the program. C...

Finding No. 2025-007 ALN No. 11.419 Program Title: Hawaii Coastal Zone Management Program Grant Award No.: NA22NOS4190022 NA23NOS4190139 NA24NOSX419C0023 NA22NOS4190065 Condition Accuity noted that the State did not submit FFATA reports for most of the active grant agreements open for the program. Corrective Action Plan DBEDT OPSD will strengthen internal controls over subaward identification and reporting. This will include hiring and training staff to support federal grant administration and management-level review of all subawards to ensure FFATA reporting is complete and timely. Person Responsible Mary Alice Evans, Director of Office of Planning and Sustainable Development Anticipated Date of Completion April 1, 2026

View Audit 395953

Finding 1201296 (2025-102)

Material Weakness 2025

Navajo County

AZ

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking

Matching (Significant Deficiency in Internal Control and Noncompliance) Assistance Listings number and program name: COVID-19 93.354 Public Health Emergency Recommendation: The County should establish procedures to track matching requirements in the general ledger, ensure all in-kind contributions a...

Matching (Significant Deficiency in Internal Control and Noncompliance) Assistance Listings number and program name: COVID-19 93.354 Public Health Emergency Recommendation: The County should establish procedures to track matching requirements in the general ledger, ensure all in-kind contributions are supported by proper documentation (e.g., timesheets), and review match compliance before use of federal funds. Contact Person(s): Catrina Jenkins, Emergency Management Manager Anticipated completion date: June 30, 2026 County Discussion: Concur: In coordination with the Arizona Department of Health Services (ADHS), the County will implement procedures to ensure matching activity is properly tracked within the general ledger. The County will also ensure that all in-kind contributions are supported by appropriate documentation, such as timesheets or other relevant supporting records, in accordance with federal grant requirements. Additionally, the County will implement a review process to verify that matching requirements are properly documented and met prior to the drawdown or use of federal funds. These measures are intended to strengthen internal controls and ensure compliance with federal grant matching requirements.

View Audit 395952

Finding 1201295 (2025-101)

Material Weakness 2025

Navajo County

AZ

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Earmarking (Material Weakness in Internal Control and Noncompliance) Cluster name: WIOA Cluster Assistance Listings number and program name: 17.258 WIOA Adult Program 17.259 WIOA Youth Program 17.278 WIOA Dislocated Worker Formula Grants Recommendation: The County should strengthen WIOA Youth Activi...

Earmarking (Material Weakness in Internal Control and Noncompliance) Cluster name: WIOA Cluster Assistance Listings number and program name: 17.258 WIOA Adult Program 17.259 WIOA Youth Program 17.278 WIOA Dislocated Worker Formula Grants Recommendation: The County should strengthen WIOA Youth Activities program policies and procedures to ensure no less than the required 20 percent of its monies is spent to provide in-school and out-of-school youth with paid and unpaid work experience, retain qualified in-school and out-of-school youth, and consistently monitor the County's and subrecipients spending throughout the award period. Contact Person(s): Adam Garrard, WIOA Executive Director Anticipated completion date: June 30, 2026 County Discussion: Concur: The County will take corrective actions to strengthen WIOA Youth program policies, procedures, and oversight to ensure compliance with the 20 percent work experience requirement. This includes ongoing monitoring and oversight of sub-recipient expenditures, addressing barriers to work experience opportunities, and increasing engagement and enrollment of both in-school and out-of-school youth. These activities will include the following: 1) include local school counselors and administrators to support recruitment of in-school youth; 2) engage community partners with access to out-of-school youth; and 3) support outreach, enrollment, and retention strategies to attract eligible youth participants.

View Audit 395952

Finding 1191775 (2025-001)

Material Weakness 2025

City of Martinez

CA

Internal Control / Segregation of Duties

The Finance Department has implemented an additional Accounts Payable control requiring departments to verify the invoice date and provide written justification for any invoices submitted to Finance more than ninety days after the invoice date. This additional step strengthens internal controls and ...

The Finance Department has implemented an additional Accounts Payable control requiring departments to verify the invoice date and provide written justification for any invoices submitted to Finance more than ninety days after the invoice date. This additional step strengthens internal controls and helps ensure timely invoice processing and payment.

View Audit 395583

Finding 1191764 (2025-001)

Material Weakness 2025

City of Huntington Park

CA

Reporting Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Management Response and Corrective Action Plan City’s Response: The City concurs with the recommendation. Corrective Action Plan: The City’s finance department has taken over reporting duties and has ensured all reporting related to CSLFRF is done on a timely basis. Planned Implementation Date: Reso...

Management Response and Corrective Action Plan City’s Response: The City concurs with the recommendation. Corrective Action Plan: The City’s finance department has taken over reporting duties and has ensured all reporting related to CSLFRF is done on a timely basis. Planned Implementation Date: Resolved, implemented in December of 2024. Responsible Person: Director of Finance

View Audit 395569

Finding 1191763 (2025-001)

Material Weakness 2025

Dawn Center for Independent Living

NJ

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles

Responsible Executive: CEO – Carmela Slivinski Implementation Status: Effective Immediately Full Implementation Date: No later than June 30, 2026 Finding — Compliance (Period of Performance) Significant Deficiency Condition: Auditor noted while testing period of performance, 1 of the 10 expenses rec...

Responsible Executive: CEO – Carmela Slivinski Implementation Status: Effective Immediately Full Implementation Date: No later than June 30, 2026 Finding — Compliance (Period of Performance) Significant Deficiency Condition: Auditor noted while testing period of performance, 1 of the 10 expenses recorded in June 2025 pertained to subsequent months outside of the contract period. Effect: One expense was included in the expenditure report under the incorrect grant period ending June 30, 2025. Cause: The Organization noted that this finding came about due to a clerical error. The bookkeeper inadvertently recorded a July invoice on June 30th and this led to an incorrect charge to the grant period ending June 30th. Recommendation: Auditor recommends management continue to perform a second review on the grant submission especially towards the end of the grant period. Management’s Response: Management concurs with the finding regarding deficiencies in grant period-of-performance compliance. Corrective Action Plan - Review existing Accounts Payable and Accounting Controls processes and revise as needed to ensure expenses are recorded as required. - Staff Training and Competency Development conducted annually to review accounting controls and ensure accounting personnel understand period of performance grant compliance requirements. - Ongoing Monitoring and Internal Compliance Review conducted periodically to ensure oversight of financial controls and grant compliance.

View Audit 395564

Finding 1191761 (2025-003)

Material Weakness 2025

County of Los Angeles

CA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

Views of Responsible Officials and Planned Corrective Action 1. Person responsible: Deputy Director, Department of Public Health 2. Corrective action plan: DPH agrees with the finding and recommendation. VPDCP will develop and implement written procedures for the centralized and secure storage of do...

Views of Responsible Officials and Planned Corrective Action 1. Person responsible: Deputy Director, Department of Public Health 2. Corrective action plan: DPH agrees with the finding and recommendation. VPDCP will develop and implement written procedures for the centralized and secure storage of documentation supporting grant deliverables and required progress reports. The procedures will include, at a minimum, the following: • Define required documentation, storage location, staff responsibilities, and retention requirements. • Require all supporting documentation to be maintained in a designated centralized repository and ensure documentation is complete, organized, and readily accessible for review. • Detail the steps during staff transitions that new staff must follow to access, maintain, and update grant-related documentation, ensuring consistency and completeness of records. VPDCP will perform periodic reviews of the centralized repository and formally document and sign-off on the reviews to verify that required documentation is maintained. 3. Anticipated implementation date: June 19, 2026

View Audit 395559

Finding 1191749 (2025-001)

Material Weakness 2025

New Jersey Coalition to End Domestic Violence, Inc.

NJ

Internal Control / Segregation of Duties

Identifying Number: 2025-001 Finding: The Coalition erroneously identified certain federal grants as state funded grants on the Schedules. Contact Person Responsible for Corrective Action: Nicole Morella, Co-Executive Director and Adreinne Gantz, Co-Executive Director Corrective Action Planned: The ...

Identifying Number: 2025-001 Finding: The Coalition erroneously identified certain federal grants as state funded grants on the Schedules. Contact Person Responsible for Corrective Action: Nicole Morella, Co-Executive Director and Adreinne Gantz, Co-Executive Director Corrective Action Planned: The Coalition acknowledges past issues with properly separating federal and state grant funds. As of July 1, 2025, the Coalition began fully segregating overlapping grants in its accounting system to ensure accurate allocation and monitoring, including separating FY26 RPE federal and state funds. The Coalition will thoroughly review each award’s conditions and funding streams to ensure all funds are correctly classified in the general ledger and monitored throughout the grant by all staff involved in the implementation, monitoring and reporting on the grant. Before year-end, the Coalition will review all received funds to ensure they are accurately reported in the Schedules. Anticipated Completion Date: June 30, 2026.

View Audit 395545

Finding 1191748 (2025-001)

Material Weakness 2025

Woodridge Nonprofit Corporation 044-11116

MI

Reporting Significant Deficiency Internal Control / Segregation of Duties

Condition: The Organization paid out management fees in excess of allowable amount per the Management Agent’s Certification agreement. Planned Corrective Action: The excess management fees will be reversed out of the Corporation for the year ended December 31, 2026, thus adjusting the fees to the al...

Condition: The Organization paid out management fees in excess of allowable amount per the Management Agent’s Certification agreement. Planned Corrective Action: The excess management fees will be reversed out of the Corporation for the year ended December 31, 2026, thus adjusting the fees to the allowable amount. Management acknowledges noncompliance in the current year and is currently reviewing internal controls related to management fees going forward. Contact person responsible for corrective action: Michael McMillan, Director of Finance / President Anticipated Completion Date: 12/31/2026

View Audit 395543

Finding 1191734 (2025-003)

Material Weakness 2025

Change, Inc.

MN

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding 2025-003 Significant Deficiency Medical Billing Revenue Recognition Internal Controls Finding Summary: Regular reconciliation between the medical billing system and the accounting system was not conducted throughout the year, leading to a significant discrepancy between the end of year trail...

Finding 2025-003 Significant Deficiency Medical Billing Revenue Recognition Internal Controls Finding Summary: Regular reconciliation between the medical billing system and the accounting system was not conducted throughout the year, leading to a significant discrepancy between the end of year trail balance and the billing software report. Responsible Individuals: Jill Johnson, Executive Director Corrective Action Plan: We are developing formal procedures to include monthly reconciliation between accounting and billing systems. Anticipated Completion Date: March 31, 2026

View Audit 395531

Corrective Action Plans

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