Corrective Action Plans

Finding 1181473 (2024-008)

Material Weakness 2024

Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries

PA

Reporting Significant Deficiency Internal Control / Segregation of Duties

U.S. Department of Health and Human Services U.S. Department of Treasury • Significant Deficiency in Internal Control over Compliance Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During ...

U.S. Department of Health and Human Services U.S. Department of Treasury • Significant Deficiency in Internal Control over Compliance Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During our testing of performance and special reporting, we noted that the Organization did not maintain documentation evidencing review or approval of submitted reports. The reports tested did not include evidence demonstrating that an authorized individual reviewed and approved the performance and special reports prior to submission. Recommendation: The Organization should implement formal internal controls over performance and special reporting by establishing documented procedures that require review and approval of all reports prior to submission. Management should define clear roles and responsibilities for report preparation and independent review, ensure that reviews are performed by an authorized individual, and maintain documentation evidencing review and approval, such as signatures, dates, or electronic approvals, to support compliance with performance reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization will implement formal internal controls over performance and special reporting by developing and documenting standardized procedures for the preparation, review, and approval of all required federal performance and special reports. These procedures will clearly define roles and responsibilities for report preparation and independent review, including identification of authorized individuals responsible for final approval. Evidence of review and approval—including signatures, dates, or electronic approval records—will be retained in the grant file to support compliance with reporting requirements. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 30, 2026.

View Audit 392710

Finding 1180866 (2024-006)

Material Weakness 2024

City of South Gate

CA

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

Management acknowledges the importance of ensuring that payroll costs charged to the program are consistent between the payroll system and the employee’s timesheet. The City continues to monitor its internal control process to ensure thorough review procedures are being followed. Timesheets are revi...

Management acknowledges the importance of ensuring that payroll costs charged to the program are consistent between the payroll system and the employee’s timesheet. The City continues to monitor its internal control process to ensure thorough review procedures are being followed. Timesheets are reviewed, bi-weekly, by payroll and adjusted to reflect actual hours as they relate to a specific activity. The City was able to hire a permanent accountant hiring who will provide additional oversight of these processes ensuring that hours worked are both reported correctly on the timesheets and are following the funding allocations that are approved by the grant.

View Audit 392505

Finding 1180823 (2024-002)

Material Weakness 2024

Porchlight, Inc.

WI

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Management agrees with the finding and has taken corrective action to ensure the timely completion and submission of the audit reporting package. With the implementation of Sage Intacct and the strengthening of internal accounting processes, Porchlight is now able to begin audit preparation earlier ...

Management agrees with the finding and has taken corrective action to ensure the timely completion and submission of the audit reporting package. With the implementation of Sage Intacct and the strengthening of internal accounting processes, Porchlight is now able to begin audit preparation earlier in the year. Regular monthly reconciliations and improved staff training have significantly reduced the number of adjustments required at year‐end. Financial statements will be prepared internally prior to the audit process, allowing management to review financial information earlier and provide complete information to the auditors in a timely manner. While certain reporting configurations within Sage Intacct continue to be refined, Porchlight is working with outside consultants experienced with the system to ensure reporting functionality operates effectively. Porchlight is also developing a formal year‐end close checklist and reporting calendar to ensure that all financial reporting tasks are completed on schedule and that audit preparation begins sufficiently in advance of reporting deadlines. The Finance Director, with oversight from the Executive Director, is responsible for monitoring audit timelines and, along with our auditors, ensure all deadlines for submission to the Federal Audit Clearinghouse are met. Staffing improvements and the engagement of external consultants have strengthened the organization’s capacity to complete the audit process in a timely manner. Management will continue to monitor internal timelines and reporting procedures to ensure future audit submissions are completed within required deadlines. Person(s) Responsible: Halle Pollay Timing for Implementation: In process

View Audit 392484

Finding 1180743 (2024-003)

Material Weakness 2024

Trinity Public Utilities District

CA

Special Tests & Provisions Reporting Internal Control / Segregation of Duties

Strengthen GL coding controls for disaster-related activity; • Implement a secondary review over expenditure coding; • Periodically reconcile disaster expenditures across all GL accounts to ensure completeness and proper classification in the FE MA-designated tracking account.

View Audit 392418

Finding 1180742 (2024-002)

Material Weakness 2024

Trinity Public Utilities District

CA

Internal Control / Segregation of Duties

Implement and document a timekeeping record-retention control that: * Reconciles payroll charges to system time entries for each day prior to reimbursement; * Flags missing daily time records for corrective action before costs are submitted; and * Requires a secondary review to verify documentation ...

Implement and document a timekeeping record-retention control that: * Reconciles payroll charges to system time entries for each day prior to reimbursement; * Flags missing daily time records for corrective action before costs are submitted; and * Requires a secondary review to verify documentation supports the period of performance for each charge.

View Audit 392418

Finding 1180664 (2024-001)

Material Weakness 2024

Mount Sinai Foundation, Incorporated 053-36322

NC

HUD Housing Programs Internal Control / Segregation of Duties § 200.302 § 200.303

Mount Sinai Foundation, Incorporated 703 Blue Street Fayetteville, North Carolina 28301 CORRECTIVE ACTION PLAN February 10, 2026 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Mount Sinai Foundation, Incorporated respectfully sub...

Mount Sinai Foundation, Incorporated 703 Blue Street Fayetteville, North Carolina 28301 CORRECTIVE ACTION PLAN February 10, 2026 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Mount Sinai Foundation, Incorporated respectfully submits the following Corrective Action Plan for the year ended December 31, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings for the year ended December 31, 2024 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 and Federal Award Program Audits Finding 2024-001 - U.S. Department of Housing and Urban Development, Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate (Sections 221d(3) and (4) Multifamily - Market Rate Housing), CFDA #14.135 Recommendation: That management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Action Taken: We agree with Finding 2024-001 and the recommendation described in the accompanying schedule of findings and questioned costs. The Corporation has executed a new management agreement with Remnant Management Inc. effective October 1, 2024. Remnant Management Inc. will ensure that all transactions are properly recorded and that key accounts are reconciled and reviewed on a periodic basis beginning October 1, 2024 and going forward. Sincerely yours, Shannon Pow President Remnant Management, Inc. Managing Agent effective October 1, 2024

View Audit 392336

Finding 1179811 (2024-001)

Material Weakness 2024

Special Health Resources for Texas, Inc.

TX

Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

To ensure consistent completion of the Sliding Fee Discount Form for all patients, new procedures have been implemented to improve the collection and documentation of required information. Patient registration forms have been revised to reflect these updates. Clerical staff will now conduct schedule...

To ensure consistent completion of the Sliding Fee Discount Form for all patients, new procedures have been implemented to improve the collection and documentation of required information. Patient registration forms have been revised to reflect these updates. Clerical staff will now conduct schedule preparation and identify patients who are non-compliant with the Sliding Fee Discount Form requirements. Post visit audits will be conducted to confrim that all necessary data is being accurately captured. The Revenue Cycle Manager will continue to provide on-site training across all locations and will work in close collaboration with clerical support staff, Clinic Managers, the Director of Operations, and the Director of Quality to ensure successful implementation and ongoing compliance.

View Audit 392189

Finding 1179640 (2024-003)

Material Weakness 2024

City of Rochester, New Hampshire

NH

Procurement, Suspension & Debarment Significant Deficiency Matching / Level of Effort / Earmarking § 200.327

Audit Finding Reference: SD-2024-003 Improve Internal Controls & Compliance with Procurement Planned Corrective Action: All contracts involving any federal grants will include the appropriate CRF 200 & 200.327 language. The language will be a required element of all federal contract, and will be cle...

Audit Finding Reference: SD-2024-003 Improve Internal Controls & Compliance with Procurement Planned Corrective Action: All contracts involving any federal grants will include the appropriate CRF 200 & 200.327 language. The language will be a required element of all federal contract, and will be clearly identified. No contracts will be approved by the City Manager without this language. Planned Implementation Date of Correction Action: Immediately as of date of deficiency notice 3-2-26. Person Responsbile for Corrective Action: Director of Finance

View Audit 392049

Finding 1179622 (2024-006)

Material Weakness 2024

Blue Ridge Community Unit School District 18

IL

Reporting Internal Control / Segregation of Duties

Corrective Action Plan: Finding No.: 2024-006; Condition: Employee Benefits reported on the June 30, 2024 ESSER III grant expenditure report did not reconcile to supporting records. Plan: The District will assign personnel independent of the grant expenditure report preparer to review the grant expe...

Corrective Action Plan: Finding No.: 2024-006; Condition: Employee Benefits reported on the June 30, 2024 ESSER III grant expenditure report did not reconcile to supporting records. Plan: The District will assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports.; Anticipated date of completion: 6/30/2026; Name of Contact Person: Ryan Peyton; Management Response: Management will implement the auditor's recommendation in the year ended June 30, 2026.

View Audit 392024

Finding 1179563 (2024-006)

Material Weakness 2024

Economic Action Committee of the Gulf Coast

TX

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303 § 200.512

Finding 2024-006 - Late Submission of Data Collection Form Corrective Action Plan: Management will implement a formal compliance calendar to track Uniform Guidance reporting deadlines. Responsibility for submission will be assigned to a specific individual. Audit progress will be monitored regularly...

Finding 2024-006 - Late Submission of Data Collection Form Corrective Action Plan: Management will implement a formal compliance calendar to track Uniform Guidance reporting deadlines. Responsibility for submission will be assigned to a specific individual. Audit progress will be monitored regularly to ensure timely completion and submission of the reporting package and Data Collection Form. Additionally, management will address underlying financial reporting control weaknesses identified in this audit to improve overall audit readiness. Responsible Party: Executive Director, Board of Directors (oversight) Planned Completion Date: Compliance calendar implemented March 11, 2026; ongoing monitoring thereafter.

View Audit 391938

Finding 1179560 (2024-005)

Material Weakness 2024

Economic Action Committee of the Gulf Coast

TX

Subrecipient Monitoring Material Weakness Reporting § 200.302 § 200.303 § 200.334

Finding 2024-005 - Major Program – Reporting Support and Review Corrective Action Plan: Procedures will be implemented to:  Retain detailed support for all Federal reports, including reconciliations to the general ledger  Require documented supervisory review prior to submission  Maintain documen...

Finding 2024-005 - Major Program – Reporting Support and Review Corrective Action Plan: Procedures will be implemented to:  Retain detailed support for all Federal reports, including reconciliations to the general ledger  Require documented supervisory review prior to submission  Maintain documentation of adjustments occurring after report submission  Establish standardized reporting workpapers for each reporting period Responsible Party: Fiscal Officer (preparation), Executive Director (review and approval) Planned Completion Date: Effective March 11, 2026; procedures implemented for all future reports.

View Audit 391938

Finding 1179535 (2024-009)

Material Weakness 2024

Restoration Christian Ministries

CO

Reporting Internal Control / Segregation of Duties § 200.328 § 200.329

Finding Number: 2024-009 Finding Title: Untimely or Incomplete Performance and Financial Reporting Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 • Federal Program Names: Economic Devel...

Finding Number: 2024-009 Finding Title: Untimely or Incomplete Performance and Financial Reporting Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 • Federal Program Names: Economic Development Initiatives—Special Project, Neighborhood Initiative and Neighborhood Stabilization Program Compliance Requirement: Reporting - Performance and Financial (2 CFR §200.328 and §200.329) Questioned Costs: $0 Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization relied on subrecipients or partners to submit reports and was not aware of its responsibility to ensure the reports were submitted timely. Procedures are being implemented to ensure all reports are provided to the Organization to ensure compliance with the federal grants. Corrective Action Plan: Corrective Action #1: Federal Reporting Tracking System • Action: Create comprehensive federal reporting calendar/tracker identifying all required reports, responsible parties, and due dates for each federal award. Implement tracking system (spreadsheet or database) with automated reminders at 60, 30, and 15 days before deadlines. Include fields documenting report completion, review, and submission dates. Board President will review tracking system monthly. • Responsible Person/Title: Board President • Anticipated Completion Date: February 28, 2026 Corrective Action #2: Responsibility Assignment • Action: Formally assign responsibility for federal reporting by Board resolution for each grant. Designate specific Board member(s) responsible for each federal grant. Establish backup designees for each report. Consider engaging consultant or part-time grants administrator if reporting volume warrants. • Responsible Person/Title: Board of Directors • Anticipated Completion Date: January 31, 2026 Corrective Action #3: Report Preparation and Review Procedures • Action: Develop standardized procedures for preparing, reviewing, and submitting federal reports. Require all reports drafted at least 10 days before due date. Implement mandatory Board Treasurer review and approval before submission. Create checklists ensuring reports are complete and supported by adequate documentation. • Responsible Person/Title: Board President • Anticipated Completion Date: February 28, 2026 Corrective Action #4: Subrecipient Reporting Requirements • Action: Include specific reporting requirements and deadlines in all subaward agreements. Require subrecipients to submit information to Restoration Christian Ministries at least 15 days before federal reporting deadlines. Implement follow-up procedures for delinquent subrecipient submissions. Designate Board member responsible for subrecipient communication. • Responsible Person/Title: Board President • Anticipated Completion Date: February 28, 2026 Corrective Action #5: Board Oversight Process • Action: Include federal reporting compliance status as standing agenda item at monthly Board meetings. Report any missed deadlines or compliance issues immediately to full Board. Conduct quarterly reviews of federal reporting tracking system to ensure accuracy and completeness. • Responsible Person/Title: Board President • Anticipated Completion Date: March 31, 2026 (initial); Ongoing monthly/quarterly thereafter Corrective Action #6: Training and Technical Assistance • Action: Board members assigned to grants will receive training on federal reporting requirements, deadlines, and procedures. Ensure Contract Accountant is available to provide financial data needed for federal reports. Consider engaging consultant to provide training and technical assistance on federal reporting. • Responsible Person/Title: Board President

View Audit 391915

Finding 1179531 (2024-006)

Material Weakness 2024

Restoration Christian Ministries

CO

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.302 § 200.305 § 200.317 § 200.318 § 200.327

Finding Number: 2024-006 Finding Title: Financial Policies and Procedures Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiat...

Finding Number: 2024-006 Finding Title: Financial Policies and Procedures Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiatives—Special Project, Neighborhood Initiative and Neighborhood Stabilization Program; Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Financial Management and Standards of Financial Management Systems (2 CFR §200.302(b)); Allowable Costs (2 CFR §200.403-405); Procurement (2 CFR §200.317-327); Cash Management (2 CFR §200.305); Travel Costs (2 CFR §200.475) Note: Organization has existing Conflict of Interest policy in compliance with 2 CFR §200.318(c)(1). Questioned Costs: $0 Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization will establish formalized accounting policies and procedures that adhere to the requirements of the Uniform Guidance. Corrective Action Plan: Corrective Action #1: Comprehensive Policy Manual Development • Action: Engage consultant or work with Contract Accountant to develop comprehensive written financial policies and procedures manual addressing all Uniform Guidance requirements, including: (a) Allowable costs (2 CFR §200.403-405); (b) Procurement (2 CFR §200.317-327); (c) Cash management (2 CFR §200.305); (d) Travel costs (2 CFR §200.475); (e) Time and effort documentation; (f) Equipment management; (g) Subrecipient monitoring; (h) Financial reporting; and (i) Record retention. Ensure policies address financial management system requirements under 2 CFR §200.302. Tailor policies to Organization's all-volunteer structure. [Note: Organization already has Conflict of Interest policy complying with 2 CFR §200.318(c)(1).] • Responsible Person/Title: Board Treasurer with Contract Accountant • Anticipated Completion Date: April 30, 2026 Corrective Action #2: Board Approval and Adoption • Action: Present draft policies to full Board of Directors for review and input. Board will formally adopt policies by resolution. Document approval in Board meeting minutes. • Responsible Person/Title: Board President • Anticipated Completion Date: May 31, 2026 Corrective Action #3: Dissemination and Training • Action: Distribute approved policies to all Board members and Contract Accountant. Conduct training session for Board members and Contract Accountant on new policies and procedures. Board members and Contract Accountant will sign acknowledgment of receipt and understanding. Make policies readily accessible (e.g., shared drive, Board portal). • Responsible Person/Title: Board President • Anticipated Completion Date: June 30, 2026 Corrective Action #4: Implementation Tools and Support • Action: Develop templates, forms, and tools to support policy implementation. Create workflow diagrams and checklists for common transactions. Establish Board Treasurer as primary resource for policy implementation questions. • Responsible Person/Title: Board Treasurer and Contract Accountant • Anticipated Completion Date: July 31, 2026 Corrective Action #5: Annual Policy Review Process • Action: Schedule annual review of policies to ensure continued Uniform Guidance compliance. Update policies as needed for regulatory or organizational changes. Submit material policy changes to full Board for approval. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: Annually, beginning June 2027 Corrective Action #6: Governance Structure Assessment • Action: Board will evaluate establishing Audit Committee or combined Finance/Audit Committee to provide enhanced oversight of financial management, internal controls, and federal compliance. If Board size prohibits separate committee, designate at least two Board members with specific oversight responsibilities. • Responsible Person/Title: Board President • Anticipated Completion Date: June 30, 2026

View Audit 391915

Finding 1179528 (2024-004)

Material Weakness 2024

Restoration Christian Ministries

CO

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.302

Finding Number: 2024-004 Finding Title: Incorrect Recording of Expenditures that were Notes Receivable Draws Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program ...

Finding Number: 2024-004 Finding Title: Incorrect Recording of Expenditures that were Notes Receivable Draws Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiatives—Special Project, Neighborhood Initiative and Neighborhood Stabilization Program; Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Financial Management and Standards of Financial Management Systems (2 CFR §200.302); GAAP Questioned Costs: $0 (classification error, not allowability issue) Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization's accountant was unaware that the federal grant payments to the subrecipient were considered draws on a note receivable. Corrections have been made to improve communication with the accountant to ensure the accountant is aware of key grant provisions and to ensure note receivable draws are being properly accounted for in the general ledger. Corrective Action Plan: Corrective Action #1: Grant Communication Protocol • Action: Establish formal process requiring Board members to provide detailed grant term summaries to Contract Accountant for all new federal awards. Create standardized grant summary form identifying key provisions affecting accounting treatment, including repayment terms, loan features, and contingencies. Hold kick-off meetings between Board representatives and Contract Accountant for all awards exceeding $100,000. Board President will maintain grants management file accessible to Contract Accountant. • Responsible Person/Title: Board President and Contract Accountant • Anticipated Completion Date: January 31, 2026 Corrective Action #2: Transaction Classification Review Procedures • Action: Implement review procedures requiring evaluation of all federal program disbursements to determine proper classification (expense vs. loan/note receivable). Contract Accountant will develop decision tree guidance. Require Board Treasurer approval for all disbursements exceeding $50,000 with verification of proper classification. • Responsible Person/Title: Contract Accountant and Board Treasurer • Anticipated Completion Date: February 28, 2026 Corrective Action #3: Chart of Accounts Modification • Action: Create separate general ledger accounts for notes receivable related to federal programs. Establish clear account coding guidelines distinguishing between grant expenditures and note receivable advances. Board Treasurer will review and approve modifications. • Responsible Person/Title: Contract Accountant • Anticipated Completion Date: January 31, 2026 Corrective Action #4: Professional Development • Action: Ensure Contract Accountant receives training on identifying and accounting for various federal program transaction types, including loans, advances, and conditional grants. Consider engaging consultant with federal grants expertise for technical assistance. Provide Board members basic training on federal grant structures to improve communication with Contract Accountant. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: February 28, 2026 Corrective Action #5: Quarterly Account Review • Action: Conduct quarterly reviews of all federal program accounts to verify proper transaction classification. Reconcile notes receivable balances to underlying agreements and repayment schedules. Report findings to full Board quarterly. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: March 31, 2026 (initial); Ongoing quarterly thereafter

View Audit 391915

Finding 1179524 (2024-002)

Material Weakness 2024

Restoration Christian Ministries

CO

Reporting Internal Control / Segregation of Duties § 200.510

Finding Number: 2024-002 Finding Title: Incomplete Schedule of Expenditures of Federal Awards Federal Program Information: • Federal Agency: Department of the Treasury • Assistance Listing Number (ALN): 21.027 • Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Compliance Requi...

Finding Number: 2024-002 Finding Title: Incomplete Schedule of Expenditures of Federal Awards Federal Program Information: • Federal Agency: Department of the Treasury • Assistance Listing Number (ALN): 21.027 • Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting - Schedule of Expenditures of Federal Awards (2 CFR §200.510(b)) Questioned Costs: $0 Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization was unaware that pass-through funds from federal sources are required to be presented on the SEFA and has implemented procedures to ensure all grants are evaluated to ensure the SEFA is complete. Corrective Action Plan: Corrective Action #1: Federal Award Identification and Tracking System • Action: Create comprehensive federal awards tracking log including all direct and pass-through awards. Implement quarterly review process where Board members and Contract Accountant meet to identify all federal awards. Develop checklist to determine SEFA inclusion requirements. Board President will maintain master list of all grant agreements. • Responsible Person/Title: Board President and Contract Accountant • Anticipated Completion Date: January 15, 2026 Corrective Action #2: SEFA Reconciliation Procedures • Action: Establish quarterly procedures to reconcile SEFA to general ledger. Cross-reference all grant agreements and award letters. Document reconciliation process with dual sign-off from Contract Accountant and Board Treasurer. • Responsible Person/Title: Contract Accountant • Anticipated Completion Date: January 31, 2026 (initial); Ongoing quarterly thereafter Corrective Action #3: Independent Review Process • Action: Implement mandatory Board Treasurer independent review of SEFA prior to audit commencement. Treasurer will verify completeness by tracing to source documents. Present draft SEFA to full Board for review before finalizing. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: Annually, beginning with FY 2025 audit Corrective Action #4: Training • Action: Provide training to Contract Accountant and all Board members on SEFA requirements, including identification of federal awards and pass-through funding, and Board oversight responsibilities. • Responsible Person/Title: Board President • Anticipated Completion Date: February 28, 2026

View Audit 391915

Finding 1179521 (2024-002)

Material Weakness 2024

Ida B Wells, INC

CT

Reporting Significant Deficiency Internal Control / Segregation of Duties

Management has maintained appropriately trained and experienced personnel to ensure the financial close process has been completed accurately and timely.

View Audit 391894

Finding 1179434 (2024-003)

Material Weakness 2024

Bemidji Regional Airport Authority

MN

Internal Control / Segregation of Duties Reporting Significant Deficiency

Controls Over Reporting Federal Agency: U.S. Department of Transportation Federal Program Name: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: AIP 45, AIP 46, AIP 47, AIP 48, AIP 44, AIP 52, AIP 50, AIP 42, AIP 49, 2024 Pass-Through Agency...

Controls Over Reporting Federal Agency: U.S. Department of Transportation Federal Program Name: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: AIP 45, AIP 46, AIP 47, AIP 48, AIP 44, AIP 52, AIP 50, AIP 42, AIP 49, 2024 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Numbers: AIP 45, AIP 46, AIP 47, AIP 48, AIP 44, AIP 52, AIP 50, AIP 42, AIP 49 Award Period: Year-Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: It is recommended the Authority have a secondary person reviewing these reports before they are submitted to the federal agency. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will evaluate its internal staff capacity to determine if an internal control policy over reviews is beneficial. Name of the contact person responsible for corrective action: Kyle Christiansen, Executive Director Planned completion date for corrective action plan: December 31, 2025

View Audit 391841

Finding 1179261 (2024-003)

Material Weakness 2024

Upstate Family Health Center, Inc.

NY

Internal Control / Segregation of Duties

Finding Number: 2024-003 Planned Corrective Action: Management acknowledged the sliding fee adjustment errors resulted from incorrect calculation of sliding fee discount. Management will add an additional layer of review over the application of the sliding fee scale. Further, the Center will impleme...

Finding Number: 2024-003 Planned Corrective Action: Management acknowledged the sliding fee adjustment errors resulted from incorrect calculation of sliding fee discount. Management will add an additional layer of review over the application of the sliding fee scale. Further, the Center will implement a process to periodically review sliding fee adjustments throughout the year for accuracy. Anticipated Completion Date: December 31, 2025 Responsible Contact Person: Andreea Mera, Chief Executive Officer

View Audit 391649

Finding 1179260 (2024-002)

Material Weakness 2024

Upstate Family Health Center, Inc.

NY

Reporting Internal Control / Segregation of Duties

Finding Number: 2024-002 Planned Corrective Action: Management acknowledged the lack of data to support certain line items reported on the 2023 Uniform Data System (UDS) report filed. The Center will have processes and procedures in place to require proper retention of reconciliation and tie-out of ...

Finding Number: 2024-002 Planned Corrective Action: Management acknowledged the lack of data to support certain line items reported on the 2023 Uniform Data System (UDS) report filed. The Center will have processes and procedures in place to require proper retention of reconciliation and tie-out of supporting documentation to final filings which will alleviate this finding. Anticipated Completion Date: December 31, 2025 Responsible Contact Person: Andreea Mera, Chief Executive Officer

View Audit 391649

Finding 1179192 (2024-001)

Material Weakness 2024

Food Bank of Delaware, Inc.

DE

Reporting Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303 § 200.510 § 200.511

Root Cause Management concurs that federal expenditures totaling approximately $5,842,346 under ALN 21.029 were omitted from the initially prepared SEFA, along with an additional $206,139 of other federal programs, for a total of $6,048,485. Additionally, management discovered that $2,786,421 was om...

Root Cause Management concurs that federal expenditures totaling approximately $5,842,346 under ALN 21.029 were omitted from the initially prepared SEFA, along with an additional $206,139 of other federal programs, for a total of $6,048,485. Additionally, management discovered that $2,786,421 was omitted from the June 30, 2024 SEFA. The omission resulted from incomplete grant tracking reports not reconciled to the general ledger and grant agreements; absence of an independent secondary review; and procedures that did not fully capture pass-through and subrecipient activity. Objective Design and implement effective internal controls to ensure the SEFA is complete, accurate, and in compliance with 2 CFR §200.510(b) and §200.303; prevent recurrence of material omissions; and sustain readiness for Single Audit reporting. 1. Comprehensive Reconciliation Process Implement a standardized monthly and year-end reconciliation that ties federal award expenditures (including drawdowns and indirect costs) to the general ledger, award agreements/portals, and program manager reports. Create a SEFA Reconciliation Workbook with crosswalks by ALN, passthrough entity, award number, program, and period of performance. 2. Federal Awards Inventory & Certification Maintain a centralized Federal Awards Inventory listing all awards by ALN, award number, passthrough entity, and funding stream. Require annual certifications from responsible leadership team members confirming completeness and accuracy of reported expenditures and period-of-performance coverage. 3. Formal Review Workflow (Independent of Preparer) Establish a documented two-tier review: (1) VP of Finance prepares SEFA and reconciliation; (2) Leadership Team Members perform independent reviews using a SEFA Checklist covering ALNs, pass-throughs, subrecipient disclosures, notes (basis, indirect cost rate), and period-of-performance matching. Evidence the review via dated sign-offs. 4. Subrecipient & Pass-through Controls The VP of Finance create procedures to identify all pass-through and subrecipient transactions. Maintain subrecipient listings with amounts passed through and ensure required disclosures (ALN, pass-through numbers) are captured in SEFA. Reconcile subrecipient agreements and payment registers to SEFA. Leadership Team Members perform independent reviews for accuracy and completeness. 5. Close Calendar & Training Adopt an annual SEFA close calendar with milestones (pre-close, interim, final). Provide annual training for finance and program staff on Uniform Guidance reporting requirements and the SEFA Checklist; include updates to OMB Compliance Supplement as applicable. 6. Monitoring & Continuous Improvement Quarterly CAP monitoring by VP of Finance with status reports to the Finance Committee. Track metrics (e.g., % variance between GL and SEFA, number of checklist exceptions) and remediate promptly. Conduct a pre-audit SEFA "dry run" at least 60 days before year-end close. Roles & Responsibilities • VP of Finance: CAP owner; oversight, quarterly monitoring, reports to Finance Committee, designs reconciliation and review workflow; ensures adherence to checklist and certifications; prepares SEFA, reconciliation workbook, and supporting schedules. • Responsible Leadership Team Member/Program Managers: Certify award activity and completeness; provide supporting documentation. Timeline & Milestones Immediate (within 30 days): Approve CAP; establish Federal Awards Inventory template; draft SEFA Checklist; schedule training. Short term (within 60-90 days): Implement monthly reconciliation; obtain program certifications; pilot independent review on QI data. By next year-end close: Execute full close calendar; complete pre-audit SEFA dry run; document reviewer sign-offs; present monitoring results to Finance Committee. Compliance References • 2 CFR §200.510(h): SEFA preparation requirements (completeness, ALN, pass-through, etc.). • 2 CFR §200.303: Internal controls over federal awards. Management Statement (for 2 CFR §200.511(c) submission) Management agrees with the finding and has initiated the corrective actions described herein. The CAP will be monitored quarterly by the VP of Finance, with status updates provided to those charged with governance until all actions are fully implemented and operating effectively.

View Audit 391574

Finding 1179099 (2024-002)

Material Weakness 2024

Line Mountain School District

PA

Subrecipient Monitoring Cash Management Reporting § 200.302 § 200.303

The District Office will work directly with the Federal Programs Coordinator to ensure more timely submissions of Reconciliation of Cash on Hand Quarterly Reports and Final Expenditure Reports are prepared accurately and submitted timely in accordance with grant requirements. The Business Manager wi...

The District Office will work directly with the Federal Programs Coordinator to ensure more timely submissions of Reconciliation of Cash on Hand Quarterly Reports and Final Expenditure Reports are prepared accurately and submitted timely in accordance with grant requirements. The Business Manager will do this by creating reminders on the Business Manager’s calendar that include due dates each quarter and reminding the Federal Programs Coordinator when their respective reports are due. The District will implement and form a review and monitoring process and provide any necessary training to staff responsible for grant reporting to ensure ongoing compliance.

View Audit 391507

Finding 1178998 (2024-007)

Material Weakness 2024

City of Stockton

CA

Special Tests & Provisions Subrecipient Monitoring Eligibility

2024-007 – Special Tests and Provisions – Internal Control and Compliance over Environmental Reviews City’s Corrective Action Plan: Out of a sample size of twenty-one (21) files, one environmental review document was missing the required signatures. Current procedural documentation states that after...

2024-007 – Special Tests and Provisions – Internal Control and Compliance over Environmental Reviews City’s Corrective Action Plan: Out of a sample size of twenty-one (21) files, one environmental review document was missing the required signatures. Current procedural documentation states that after the environmental review document is completed by the project manager, it is to be routed to the First Level Reviewer (Division Manager), then to the Certifying Officer for signature. The Department will diligently ensure that the documentation is completed and routed through the approval process and will make this a priority Responsible Person: Director of Economic Development and Housing Manager Expected Implementation Date: FY 2025

View Audit 391415

Finding 1178997 (2024-006)

Material Weakness 2024

City of Stockton

CA

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

2024-006 – Reporting – Internal Control and Compliance over Reporting City’s Corrective Action Plan: This finding is related to COVID-19 funding that was administered during the height of the pandemic, when multiple funding sources were required to be expended simultaneously. Section 15011 reporting...

2024-006 – Reporting – Internal Control and Compliance over Reporting City’s Corrective Action Plan: This finding is related to COVID-19 funding that was administered during the height of the pandemic, when multiple funding sources were required to be expended simultaneously. Section 15011 reporting was a new requirement within the CARES Act of 2020, to the Department and the City at that time. By the time this issue was identified as an area of deficiency in the prior audit period, it was no longer possible to retroactively correct or report for that respective audit year, nor for the current audit period. In response to the prior audit report, the City evaluated options to centralize Section 15011 reporting, given that it falls under the Federal Funding Accountability and Transparency Act (FFATA) of 2006 and is closely tied to procurement activities of over $150,000. The City explored whether this reporting could be managed through the City’s Grant Manager position under the Administrative Services Department (ASD) The City accepts the finding of noncompliance with WIFIA reporting requirements, as the Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2024 was dated September 17, 2025, which exceeded the required 180-day submission deadline of December 27, 2024. The delay was due to challenges in completing the City-wide ACFR resulting from ongoing staff turnover. As a corrective action, the City will strengthen internal processes and oversight to ensure the ACFR is completed and submitted in a timely manner in future reporting periods. The City will implement enhanced internal controls to ensure timely, accurate, and complete submission of Quarterly Project and Expenditure (P&E) Reports for both SLFRF and ARPA Revenue Loss. Corrective actions include establishing a formal internal reporting calendar with assigned responsibilities to meet Treasury deadlines, performing a documented quarterly reconciliation of general ledger obligations and expenditures to P&E report amounts, correcting prior reporting errors or duplications, and requiring supervisory review and approval of all reports before submission to the U.S. Department of the Treasury. Additionally, the City will develop standardized reporting templates, provide staff training on Treasury reporting requirements, and maintain oversight by the Finance Director to ensure ongoing compliance, accuracy, and timely reporting of all expenditures. Responsible Person: Grants Manager; Accounting Manager, CFO and Departments Administering Grants Expected Implementation Date: FY 2026

View Audit 391415

Finding 1177971 (2024-005)

Material Weakness 2024

Wyoming Weatherization Services

WY

Reporting Internal Control / Segregation of Duties

2024-005: Segregation of Duties (Significant Deficiency) Views of Responsible Officials and Planned Corrective Actions: The Organization’s Executive Office Staff are responsible for the financial transactions and communicate frequently and dependably about transactions, receipts, and accounting issu...

2024-005: Segregation of Duties (Significant Deficiency) Views of Responsible Officials and Planned Corrective Actions: The Organization’s Executive Office Staff are responsible for the financial transactions and communicate frequently and dependably about transactions, receipts, and accounting issues. In this way, a segregation of duties is maximized given the small staff and limited ability of the Organization to expand staff. The Organization has two Office Assistant Managers. The first is the assistant to the CFO. This assistant is responsible for weekly payroll, reviewing client file completions after the first assistant reviews them, assisting with expense reports, and assisting with quarterly and yearly reports. She has Board of Directors approval to sign checks and approve bills on an as-needed basis in the event that other authorized signors are unavailable. This ensures that all checks and payments have dual signatures, as required. In the absence of the CFO or CEO, the checks and bills approved by the assistant are subsequently reviewed. She also is the supervisor of the second Office Assistant Manager. The second assistant is responsible for entering receipts/bills on a daily basis, printing, and balancing accounts payable and checks, and providing the first review of client file completions. This assistant has no check-signing or bill approval authority. She also has no access to payroll, journal entries, or bank information. The CEO also believes that distributing monthly financial reports to the Organization’s Board of Directors creates transparency that compensates for this deficiency in segregation of duties. Anticipated Completion Date - Ongoing, see corrective action plan above. Contact Person - Janelle Anderson, Chief Financial Officer

View Audit 391404

Finding 1177943 (2024-001)

Material Weakness 2024

Lorain County General Health District

OH

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance § 200.302 § 200.328 § 200.329

Now that Treasury Portal is updated with all obligations the County will utilize Oracle reporting to input all remaining expenditures in the applicable quarterly report.

View Audit 391349

Corrective Action Plans

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