Corrective Action Plans

Finding 573134 (2025-003)

Significant Deficiency 2025

Northland Health Partners Community Health Center

ND

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

Contact Person Nadine Boe, CEO Corrective Action Plan Management will work to ensure that the SFS discount applications are completed accurately and that the SFS discounts are recorded accurately in the system by auditing the SFS applications and verifying the SFS in the system matches the SFS appli...

Contact Person Nadine Boe, CEO Corrective Action Plan Management will work to ensure that the SFS discount applications are completed accurately and that the SFS discounts are recorded accurately in the system by auditing the SFS applications and verifying the SFS in the system matches the SFS application. In addition, Management will audit a sample of the SFS discounts on a monthly basis to assure the SFS is applied correctly. Management will also provide additional training to staff as needed and provide further guidance on the internal SFS policies and procedures.

View Audit 363937

Finding 572937 (2025-002)

Significant Deficiency 2025

Csi Residential, Inc.

CT

Questioned Costs HUD Housing Programs Reporting

Deposits required by HUD were not made during fiscal year 2025 to the reserve fund. Recommendation: CLA Recommends the Project enforce procedures that ensure deposits are made timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned i...

Deposits required by HUD were not made during fiscal year 2025 to the reserve fund. Recommendation: CLA Recommends the Project enforce procedures that ensure deposits are made timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management has made the missing deposit as of March 31, 2025. Name of the contact person responsible for corrective action: Laurie Rudman, Senior Vice President, CFO Planned completion date for corrective action plan: March 31, 2025

View Audit 363778 Questioned Costs: $1

Finding 572935 (2025-001)

Significant Deficiency 2025

Csi Residential, Inc.

CT

HUD Housing Programs Reporting Significant Deficiency

The Project had not timely reviewed the bank reconciliations for July 2024. Recommendation: CLA Recommends the Project review bank reconciliations timely and formerly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to fin...

The Project had not timely reviewed the bank reconciliations for July 2024. Recommendation: CLA Recommends the Project review bank reconciliations timely and formerly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management has retroactively reviewed all bank reconciliations that were not reviewed by the former management team as of March 31, 2025. Name of the contact person responsible for corrective action: Laurie Rudman, Senior Vice President, CFO Planned completion date for corrective action plan: March 31, 2025

View Audit 363778

Finding 572429 (2025-001)

Significant Deficiency 2025

Regis University

CO

Student Financial Aid Questioned Costs Special Tests & Provisions

Finding 2025-001 Personnel Responsible for Corrective Action: Deborah Vinnola, Registrar Anticipated Completion Date: September 30, 2025 Corrective Action Plan: The Office of the Registrar has put into place a more detailed corrective action plan regarding the finding of delayed enrollment and non...

Finding 2025-001 Personnel Responsible for Corrective Action: Deborah Vinnola, Registrar Anticipated Completion Date: September 30, 2025 Corrective Action Plan: The Office of the Registrar has put into place a more detailed corrective action plan regarding the finding of delayed enrollment and non-enrollment reporting to NSLDS through NSC. The Office of the Registrar has adjusted the Degree Verify submission from every 45 days to every 30 days to NSC to ensure graduation dates are reported in a more timely fashion for NSLDS within the required 60 days for financial aid. Starting Summer 2025, the Office of the Registrar has begun inactivating academic programs for students who have not had registration activity within the last two to three academic years to ensure that they are not reported as enrolled to NSC/NSLDS. NSC Enrollment Reporting will continue to be submitted every 30 days and the Office of the Registrar has worked to review the reporting criteria using terms and not semesters to better report active enrollment in current courses. The Ellucian Graduation Application form and process is in the final stages of testing which will eliminate completely the need to add a pseudo course with a future date after the student’s current program has been inactivated or graduated. The Office of the Registrar will be more proactive with the colleges for identifying students who have not graduated within the six year (undergraduate), four year (graduate) and certificate time frames by working with the appropriate dean’s offices. This should eliminate those students who have completed their coursework; close to completing their coursework but were never reviewed by their advisor/program for graduation. Since Regis uses the end date of the last course completed, the Office of the Registrar will work with advising units to review the lists to increase a better reporting of degree completion.

View Audit 363564

Finding 571805 (2025-002)

None 2025

Dima Ix, Inc.

DE

Internal Control / Segregation of Duties Subrecipient Monitoring

1. Reimbursed the Replacement Reserve Account: The missed deposits totaling $663 were reimbursed to the replacement reserve on May 30, 2025. 2. Implemented Monthly Oversight Meetings: Beginning in January 2025, we instituted monthly meetings to review financial statements, budgets, forecasts, and...

1. Reimbursed the Replacement Reserve Account: The missed deposits totaling $663 were reimbursed to the replacement reserve on May 30, 2025. 2. Implemented Monthly Oversight Meetings: Beginning in January 2025, we instituted monthly meetings to review financial statements, budgets, forecasts, and compliance-related data. These meetings include key stakeholders and team members to ensure timely discussions of financial status, variances, and compliance matters. This structure enhances accountability and provides regular managerial oversight.

View Audit 362823

Finding 571804 (2025-001)

Significant Deficiency 2025

Dima Ix, Inc.

DE

Internal Control / Segregation of Duties

1. Implemented Monthly Oversight Meetings: Beginning in January 2025, we instituted monthly meetings to review financial statements, budgets, forecasts, and compliance-related data. These meetings include key stakeholders and team members to ensure timely discussions of financial status, variances,...

1. Implemented Monthly Oversight Meetings: Beginning in January 2025, we instituted monthly meetings to review financial statements, budgets, forecasts, and compliance-related data. These meetings include key stakeholders and team members to ensure timely discussions of financial status, variances, and compliance matters. This structure enhances accountability and provides regular managerial oversight. 2. Hired Key Finance Staff to Support Segregation of Duties: To improve internal controls, we have hired a new Chief Finance Officer with expanded responsibilities over the accounting functions of the housing entities. We have also hired a Senior Accountant who has assumed responsibility for the day-to-day accounting tasks previously performed by the Senior Director of Housing & Facilities. These hires have significantly enhanced our ability to segregate duties. We are currently in the process of formalizing these new roles, along with related internal controls and procedures, to establish a more robust control environment.

View Audit 362823

Finding 570974 (2025-001)

Significant Deficiency 2025

Village Cooperative of Hutchinson

MN

Questioned Costs Reporting Internal Control / Segregation of Duties

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperativ...

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Planned Completion Date: Not Applicable.

View Audit 361899

Finding 570852 (2025-002)

Significant Deficiency 2025

Cornish College of the Arts and Cornish Foundation

WA

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

Student Financial Assistance Cluster – Assistance Listing No. 84.007 Recommendation: We recommend the College implement policies to review all student award packages at the start of the academic year to ensure no overawards exist. Explanation of disagreement with audit finding: There is no disagre...

Student Financial Assistance Cluster – Assistance Listing No. 84.007 Recommendation: We recommend the College implement policies to review all student award packages at the start of the academic year to ensure no overawards exist. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: I'm working closely with the academic records specialist to make sure that we align all our processes and identify why certain dates were misreported, and that we ensure our internal definitions match SU's. Name(s) of the contact person(s) responsible for corrective action: Chris Cook Planned completion date for corrective action plan: June 16th, 2025

View Audit 361771

Finding 570847 (2025-001)

Significant Deficiency 2025

Cornish College of the Arts and Cornish Foundation

WA

Questioned Costs Student Financial Aid Reporting

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

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the College review its reporting procedures to ensure the students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The student that was incorrectly coded as FWS funds, the funds were immediately reclassified as institutional aid. Since Cornish, did not draw down all FWS funding, it did not impact the G5 drawdown and no needs needed to be returned. Going forward, a higher-level review will be conducted for students with high SAI and low need to ensure that no need-based funds, if not eligible, are in the packaging. This review, will take place after the initial counselor review, but before a student can begin working in the FWS program. This third check will ensure that these types of files are again reviewed in a timely manner and no over awards will happen in the future. Name(s) of the contact person(s) responsible for corrective action: Sara Drummond Planned completion date for corrective action plan: June 16th, 2025

View Audit 361771

Finding 570576 (2025-001)

Significant Deficiency 2025

Holly Way Ii, Inc.

SC

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding 2025-001: Comments on the Finding and Each Recommendation: During the year ended March 31, 2025, the Corporation withdrew $6,905 from the reserve for replacements without a HUD approved 9250.The Corporation should transfer $6,905 from operating cash into the reserve for replacements. Action...

Finding 2025-001: Comments on the Finding and Each Recommendation: During the year ended March 31, 2025, the Corporation withdrew $6,905 from the reserve for replacements without a HUD approved 9250.The Corporation should transfer $6,905 from operating cash into the reserve for replacements. Action(s) taken or planned on the finding Management concurs with the recommendation. On April 26, 2024, the Corporation transferred $6,905 from the operating cash account to the reserve for replacement account.

View Audit 361606 Questioned Costs: $1

Finding 568853 (2025-001)

Significant Deficiency 2025

Realife Cooperative of Bloomington

MN

Questioned Costs Reporting Internal Control / Segregation of Duties

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperativ...

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Planned Completion Date: Not Applicable.

View Audit 360579

Finding 1235950 (2024-001)

Material Weakness 2024

Town of Ashland

MA

Reporting Significant Deficiency Internal Control / Segregation of Duties

Audit Finding Reference: 2024-001 Inaccurate Project and Expenditure Reporting Planned Corrective Action: The Town acknowledges the finding regarding inaccurate project and expenditure reporting and appreciates the opportunity to strengthen its reporting processes. While the project identified in th...

Audit Finding Reference: 2024-001 Inaccurate Project and Expenditure Reporting Planned Corrective Action: The Town acknowledges the finding regarding inaccurate project and expenditure reporting and appreciates the opportunity to strengthen its reporting processes. While the project identified in the finding has since been completed and closed, the Town will implement additional controls to help prevent similar issues in future projects. Effective July 1, 2026, the Accounting Department added one FTE to provide additional capacity for project financial oversight and review. Moving forward, the Town will increase the frequency of reconciliations and strengthen supervisory review of project expenditures and reporting to ensure transactions are accurately recorded, properly supported, and reported in accordance with applicable requirements. Planned Implementation Date of Corrective Action: September 2026 Person Responsible for Corrective Action: Stephanie Pemberton, Town Accountant Please consider this the Town’s official corrective action response to be included in the final audit report.

View Audit 411560

Finding 1235910 (2024-002)

Material Weakness 2024

Stanislaus Council of Governments

CA

Internal Control / Segregation of Duties Subrecipient Monitoring § 200.512

Reference Number: 2024-002 Finding Title: Delays in Financial and Single Audit Reporting Management's Response Management concurs with the finding and acknowledges that this is a repeat finding classified as a material weakness and material noncompliance. The delays identified in the completion of S...

Reference Number: 2024-002 Finding Title: Delays in Financial and Single Audit Reporting Management's Response Management concurs with the finding and acknowledges that this is a repeat finding classified as a material weakness and material noncompliance. The delays identified in the completion of StanCOG's financial statements and Single Audit reporting were the result of significant deficiencies in historical financial reporting processes that developed over multiple fiscal years. During the period under audit, StanCOG experienced complete turnover within its Finance Department, resulting in the loss of institutional knowledge and limited continuity in accounting operations. In addition, documented financial procedures were either incomplete or not consistently followed, resulting in delayed reconciliations, incomplete accounting records, and the inability to provide timely support for the external audit process. These conditions were further compounded by the extensive effort required to reconstruct multiple years of financial records, resolve historical accounting discrepancies, and complete outstanding reconciliations before the audit could proceed. As a result, the financial statement audit and Single Audit reporting package could not be completed within the required regulatory timeframe. Because the audit itself was significantly delayed, this finding is reported as a repeat finding. StanCOG has recently hired a new Finance Director and new Executive Director to lead the organization's financial recovery efforts and strengthen its internal control environment. Management has begun evaluating existing financial processes and is implementing corrective actions designed to improve the timeliness and accuracy of financial reporting and ensure compliance with applicable federal reporting requirements. Management is implementing, or plans to implement, the following corrective actions: • Develop and maintain a formal month-end and year-end financial closing calendar with clearly defined deadlines and assigned responsibilities. • Develop and document standardized financial close procedures and workflows for key accounting and reporting activities. • Perform recurring reconciliations of all significant balance sheet accounts throughout the fiscal year to minimize year-end adjustments and facilitate a timely close. • Establish documented management review procedures to monitor the timely completion of reconciliations, financial reporting, and audit support activities. • Improve coordination and communication with external auditors by identifying required schedules and supporting documentation earlier in the audit process. • Strengthen management oversight of the financial reporting process by regularly monitoring progress toward key reporting deadlines and addressing issues as they arise. • Continue rebuilding the Finance Department by establishing sustainable processes, cross-training staff, and improving documentation to promote continuity and long-term compliance. Management recognizes the importance of timely financial reporting and compliance with federal Single Audit requirements. While this finding reflects historical conditions that developed over multiple fiscal years, StanCOG is committed to implementing sustainable financial management practices and strengthening its internal control environment. Management believes these corrective actions will improve the timeliness, accuracy, and reliability of future financial reporting and help ensure compliance with all applicable regulatory requirements.

View Audit 411533

Finding 1230146 (2024-058)

Material Weakness 2024

State of Nevada

NV

Special Tests & Provisions Subrecipient Monitoring Material Weakness

Finding 2024-058- Special Tests and Provisions – Subgrant Awards (Pass-through Requirement) Auditor's Summary of the Finding The auditors concluded that DEM did not maintain sufficient internal controls to ensure compliance with the statutory requirement that at least 80 percent of State Homeland Se...

Finding 2024-058- Special Tests and Provisions – Subgrant Awards (Pass-through Requirement) Auditor's Summary of the Finding The auditors concluded that DEM did not maintain sufficient internal controls to ensure compliance with the statutory requirement that at least 80 percent of State Homeland Security Program (SHSP) funds were obligated to local units of government within the required timeframe or that written consent was obtained when funds were retained by the State Administrative Agency (SAA). As a result, the auditors recommended that DEM strengthen internal controls to document compliance with the statutory passthrough requirement. DEM Response DEM respectfully disagrees with the conclusion that it lacked internal controls over compliance with the SHSP 80 percent pass-through requirement. DEM maintains an established governance process that provides multiple levels of review before Homeland Security Grant Program funding recommendations are submitted to FEMA. All HSGP applications are initially reviewed by DEM staff for compliance with the annual Notice of Funding Opportunity (NOFO), applicable federal statutes, FEMA guidance, and program eligibility requirements. Applications and proposed funding allocations are then reviewed through a transparent public process by the Nevada Resilience Advisory Committee (NRAC), the Urban Area Working Group (UAWG), the Homeland Security Finance Committee, and the Nevada Homeland Security Commission (NHSC), with full participation of all eligible applicants. These reviews evaluate project eligibility, funding priorities, and compliance with applicable statutory and program requirements prior to FEMA approval. The FY 2023 FEMA Preparedness Grants Manual describes FEMA's review of preparedness grant applications, investment justifications, and funding allocations prior to award. DEM's application review process complements FEMA's oversight through multiple levels of state and local review before funding recommendations are submitted. Likewise, FEMA reviews the State's HSGP application and proposed funding allocations for compliance with the applicable NOFO before issuing an award. The Manual does not prescribe a specific post-award methodology requiring recipients to maintain a cumulative statewide calculation of the pass-through requirement. During Nevada's application review process, any funding proposed to remain with DEM as the State Administrative Agency is openly discussed with participating jurisdictions and stakeholder groups. Those funding decisions are agreed upon through the public application review process and are documented through Memoranda of Understanding (MOUs) and executed subaward documents. These records document local government concurrence with funding allocations and provide evidence supporting compliance with statutory pass-through requirements. Accordingly, DEM believes its existing governance structure constitutes an effective preventive internal control over compliance with the SHSP pass-through requirement. Corrective Action Although DEM believes its existing internal controls provide reasonable assurance of compliance, DEM recognizes the benefit of enhancing documentation supporting those controls. DEM has revised its Internal Control Manual to strengthen grant administration and oversight and will implement the following additional procedures: • Maintain a grant file certification documenting compliance with the SHSP statutory pass-through requirement for each HSGP award. • Retain documentation demonstrating review of funding allocations through DEM staff, NRAC, UAWG, Homeland Security Finance Committee, and NHSC. • Retain all applicable Memoranda of Understanding, subaward agreements, and supporting documentation evidencing local jurisdiction concurrence regarding funds retained by DEM. • Document any FEMA approvals or written consents applicable to retained funding in the official grant file. • Continue annual review of internal controls and grant administration procedures to ensure continued compliance with FEMA guidance and federal requirements. These enhancements formalize documentation of controls that have historically existed throughout Nevada's HSGP governance and award process. Responsible Official(s): • Susan Coyote, Chief Grants Officer • Shealyne Slone, Preparedness Grants Supervisor Anticipated Completion Date: Implemented for FY 2026 HSGP awards; ongoing thereafter.

View Audit 411357

Finding 1230144 (2024-056)

Material Weakness 2024

State of Nevada

NV

Reporting Internal Control / Segregation of Duties § 200.303

Finding 2024-056 – Reporting (FFATA Reporting) Auditor's Summary of the Finding The auditors determined that the Nevada Division of Emergency Management (DEM) did not maintain sufficient internal controls to ensure compliance with the Federal Funding Accountability and Transparency Act (FFATA) repor...

Finding 2024-056 – Reporting (FFATA Reporting) Auditor's Summary of the Finding The auditors determined that the Nevada Division of Emergency Management (DEM) did not maintain sufficient internal controls to ensure compliance with the Federal Funding Accountability and Transparency Act (FFATA) reporting requirements. Specifically, the auditors identified deficiencies in the review and reporting process and recommended that DEM implement documented procedures, including an independent review of FFATA submissions prior to reporting. OEM Response The Nevada Office of Emergency Management (OEM), formerly the Nevada Division of Emergency Management (DEM) during the FY 2024 audit period, agrees that FFATA reporting should be performed accurately, timely, and in accordance with applicable federal requirements. During the audit period, DEM maintained grant administration controls that included supervisory oversight, segregation of duties, and management review of grant activities. The audit identified an opportunity to further formalize documentation of FFATA reporting responsibilities and the review process supporting those submissions. OEM believes the finding primarily reflects the need for additional documentation of existing review procedures rather than the absence of internal controls. Corrective Action Planned OEM has revised its Internal Control Manual to formally document internal controls governing FFATA reporting. The revised Grant Management section establishes documented review responsibilities, segregation of duties, supervisory oversight, and record retention requirements throughout the grant administration process. These controls include documented review of FFATA reporting requirements prior to submission and retention of supporting documentation within the official grant file. Where applicable, the Internal Control Manual references the Grant Management Guide, which provides detailed procedures for determining FFATA reporting applicability and completing required submissions. Supervisory review responsibilities have been formalized to ensure FFATA submissions are reviewed for completeness, accuracy, and compliance before reporting. These revisions strengthen documentation of existing grant management practices and provide additional assurance that FFATA reporting requirements are consistently reviewed, completed, and supported. Responsible Official(s) • Susan Coyote, Chief Grants Officer • Shealyne Slone, Preparedness Grants Supervisor Anticipated Completion Date Implemented through the 2026 Internal Control Manual. Revised FFATA review and documentation procedures are currently in effect and will be applied to all active and future Homeland Security Grant Program awards.

View Audit 411357

Finding 1230143 (2024-055)

Material Weakness 2024

State of Nevada

NV

Reporting Internal Control / Segregation of Duties § 200.303

Finding 2024-055 – Reporting (SF-425 Federal Financial Reporting) Auditor's Summary of the Finding The auditors determined that the Nevada Division of Emergency Management (DEM) did not have sufficient internal controls to ensure Federal Financial Reports (SF-425) were accurately prepared, independe...

Finding 2024-055 – Reporting (SF-425 Federal Financial Reporting) Auditor's Summary of the Finding The auditors determined that the Nevada Division of Emergency Management (DEM) did not have sufficient internal controls to ensure Federal Financial Reports (SF-425) were accurately prepared, independently reviewed, and reconciled prior to submission. The auditors recommended that DEM strengthen its internal controls by implementing documented reconciliation procedures and an independent supervisory review of SF-425 reports before submission. OEM Response The Nevada Office of Emergency Management (OEM), formerly the Nevada Division of Emergency Management (DEM) during the FY 2024 audit period, agrees that Federal Financial Reports (SF-425) should be prepared, reconciled, and reviewed in accordance with applicable federal requirements. During the audit period, DEM maintained financial management controls that included supervisory oversight, segregation of duties, and reconciliation of financial information prior to the submission of federal financial reports. The audit identified opportunities to better document these review procedures and demonstrate that reconciliations and supervisory reviews were consistently performed before SF-425 reports were submitted. Corrective Action Planned OEM has revised its Internal Control Manual to formally document the existing financial reporting controls governing the preparation and submission of SF-425 reports. The revised manual requires segregation of duties throughout the financial reporting process and establishes documented supervisory review, reconciliation of supporting financial records, and retention of supporting documentation prior to submission of federal financial reports. The revised Grant Management and Financial Management sections reinforce these requirements by requiring: • Reconciliation of financial data to the State's accounting records and grant financial records before submission. • Independent supervisory review of SF-425 reports for completeness, accuracy, and compliance with federal reporting requirements. • Documentation of the review and reconciliation process as part of the official grant file. • Segregation of duties between personnel responsible for preparing, reviewing, and approving financial reports. These revisions formalize existing financial reporting practices, strengthen documentation of supervisory reviews and reconciliations, and provide additional assurance that Federal Financial Reports are complete, accurate, and supported prior to submission. Responsible Official(s) • Jared Franco, Chief Fiscal Officer • Judith Lyman, Budget Officer Anticipated Completion Date Implemented through the 2026 Internal Control Manual. Revised financial reporting procedures are currently in effect and will be applied to all active and future Homeland Security Grant Program awards.

View Audit 411357

Finding 1230140 (2024-052)

Material Weakness 2024

State of Nevada

NV

Internal Control / Segregation of Duties Special Tests & Provisions Procurement, Suspension & Debarment § 200.303

Finding: 2024-052: DETR does not have written procedures for verifying, before engaging the services of a provider and at least annually thereafter, whether provides have valid medical licenses and are not currently excluded, suspended, or barred from participation in federal or federally assisted p...

Finding: 2024-052: DETR does not have written procedures for verifying, before engaging the services of a provider and at least annually thereafter, whether provides have valid medical licenses and are not currently excluded, suspended, or barred from participation in federal or federally assisted programs; and whose license to provide health care is not currently lawfully revoked or suspended by any state licensing authority for reasons of fraud, abuse, or professional misconduct. In addition, DETR has an individual assigned to this task as part of the position’s job duties. However, there is no evidence of monitoring by someone other than the individual (segregation of duties and oversight) that this procedure was followed and the results were appropriate. Recommendation: DETR develop written policies and procedures over this process and implement a review and monitoring procedure to ensure the task has been completed accurately and timely. Corrective Action: Contact: Brett Martinez bjmartinez@detr.nv.gov, Jana Vaughn Jana.Vaughn@ssa.gov, Arturo Martinez a-martinez@detr.nv.gov DETR has completed the corrective actions associated with this finding. Written procedures have been developed and implemented to document the required verification steps. In addition, oversight controls have been established to ensure proper segregation of duties. These controls include supervisory monitoring to confirm that the assigned staff member performs the required verifications and that the results are appropriate and fully documented. This corrective action is complete.

View Audit 411357

Finding 1230123 (2024-037)

Material Weakness 2024

State of Nevada

NV

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

Finding 2024-037: Reporting The Division of Public and Behavioral Health (DPBH) did not have adequate internal controls to ensure quarterly fiscal reports were reviewed by a person other than the preparer and that certain information reconciled to underlying supporting documentation. Nevada Division...

Finding 2024-037: Reporting The Division of Public and Behavioral Health (DPBH) did not have adequate internal controls to ensure quarterly fiscal reports were reviewed by a person other than the preparer and that certain information reconciled to underlying supporting documentation. Nevada Division of Public and Behavioral Health response: The Nevada Division of Public and Behavioral Health accepts this finding and will initiate corrective action as described below. Corrective Action: The Division of Public and Behavioral Health will enhance internal controls to ensure the Quarterly Fiscal Reports are reconciled to underlying supporting documentation and are reviewed by an individual independent of the preparation of the reports. Date of Completion: August 2026 Responsible Party: Kagan Griffin, Health Program Manager II Kailynn Griffith, Health Program Manager II If you have any questions, please contact Kori Kendall, Auditor III at 775-684-3228 or by email at k.kendall@health.nv.gov.

View Audit 411357

Finding 1230108 (2024-034)

Material Weakness 2024

State of Nevada

NV

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

Finding #2024-034 - Education Stabilization Fund, 84.425 Reporting - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to identify required information to be reporte...

Finding #2024-034 - Education Stabilization Fund, 84.425 Reporting - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to identify required information to be reported, ensure accuracy, and maintain adequate document retention to support compliance. NDE Response Due to rapid turnover, changes in assigned personnel, and inconsistent file architecture, NDE has struggled to ensure that source documentation is labeled and retained appropriately. Corrective Action NDE shall document standards for data and reporting, to include required standards for policies and procedures and business rules, to support the development of new and/or temporary reporting requirements in alignment with all relevant internal controls. NDE shall implement internal control monitoring specific to compliance with the data and reporting standards. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2027. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.

View Audit 411357

Finding 1230107 (2024-033)

Material Weakness 2024

State of Nevada

NV

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

Finding #2024-033 - Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to ensure main...

Finding #2024-033 - Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to ensure maintenance of effort is tracked, complied with, and supporting documents maintained. NDE Response In alignment with efforts under findings 2023-034 and 2024-030, regarding maintenance of effort, the Department has worked to develop policies and procedures, business rules, and consistent data and reporting practices across reports. Corrective Action NDE shall document standards for data and reporting, to include required standards for policies and procedures and business rules, to support the development of new and/or temporary reporting requirements in alignment with all relevant internal controls. NDE shall implement internal control monitoring specific to Maintenance of Effort. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; November 1, 2026. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.

View Audit 411357

Finding 1230036 (2024-005)

Material Weakness 2024

Valley Health Associates

CA

Subrecipient Monitoring Material Weakness Reporting § 200.512

Planned Corrective Action: Valley Health Associates will ensure accounting methods are consistent and include proper documentation. And, immediately ensure reports are submitted in a timely manner for the Medi-caid program.

View Audit 411282

Finding 1230031 (2024-003)

Material Weakness 2024

SC UPLIFT COMMUNITY OUTREACH

SC

HUD Housing Programs Internal Control / Segregation of Duties

Finding 2024-003 - Segregation of Duties Fiscal Year Finding Initially Occurred: FY 2024 (Initial Finding) Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) Award Year: 2021 and 2024 Criteria or specific requirement: Statements on Auditing Standards, Communicating Inter...

Finding 2024-003 - Segregation of Duties Fiscal Year Finding Initially Occurred: FY 2024 (Initial Finding) Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) Award Year: 2021 and 2024 Criteria or specific requirement: Statements on Auditing Standards, Communicating Internal Control Related Matters Identified in an Audit, require the auditor to report on whether the Society has appropriate segregation of duties relating to all aspects of its bookkeeping and accounting procedures. Good internal control requires a complete separation of duties with respect to handling and recording transactions No one person should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition: There is an absence of an absolute segregation of duties in the accounting process due primarily to an accounting department that lacks the size and resources to function in an ideal manner that could assist in reducing the likelihood of a material misstatement. Cause of condition: Limited available staff, coupled with the size of the Society, and prohibitive costs currently prevent an absolute segregation of duties. The Society believes the cost far outweighs the perceived benefits. Potential effect of condition: The lack of an absolute segregation of duties weakens the Society's internal control structure's ability to absolutely prevent and/or detect possible misstatements or compliance issues through second-party independent verification for safeguarding of assets, potential material misstatement, and safeguarding of assets within the Society's financial statements. Recommendation: We understand that the added costs of providing an absolute segregation of duties will, in most cases, outweigh the projected benefits of the added controls, and therefore, may be considered unjustified. However, we are obligated by recently adopted auditing standards to bring this condition to the attention of management and the Board. Those charged with governance are obligated to consider the validity of these comments in light of the circumstances surrounding this condition and respond as they consider necessary. Their response may very well entail acceptance and continuance of this condition as the best perceived alternative under the circumstances. Response of responsible SC UpLift Official: Absolute separation of duties is rarely, if ever, seen within small to medium-sized organizations simply because of the lack of a cost-benefit justification for the added segregation of duties. In the absence of absolute segregation of duties, we implore mitigating controls that reduce the likelihood of material misstatement. We believe that the added costs of providing an absolute segregation of duties will far outweigh the projected benefits of the added controls, and therefore, consider it as unjustifiable.

View Audit 411275

Finding 1230029 (2024-001)

Material Weakness 2024

SC UPLIFT COMMUNITY OUTREACH

SC

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Finding 2024-001 - Internal Controls Over Accounting and Financial Reporting Fiscal Year Finding Initially Occurred: FY 2024 (Initial Finding) Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) Award Year: 2021, 2023, and 2024 Criteria or specific requirement: Under the ...

Finding 2024-001 - Internal Controls Over Accounting and Financial Reporting Fiscal Year Finding Initially Occurred: FY 2024 (Initial Finding) Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) Award Year: 2021, 2023, and 2024 Criteria or specific requirement: Under the Uniform Guidance (2 CFR Part 200), non-Federal entities that receive Federal awards must maintain an accounting and financial management system that provides adequate internal control, accountability, and reporting. Generally Accepted Accounting Principles (GAAP) require revenues and expenses to be recognized in the period in which they are earned or incurred. Assets, liabilities, and net assets should be accurately recorded and reported as of the applicable reporting date. Organizations should maintain effective controls to ensure proper period-end cutoff and accurate financial reporting. Condition: During our audit, we identified material accounting errors in accounts receivable, equity investments, property and equipment, accumulated depreciation, construction in progress, accounts payable, and the classification of net assets with donor restrictions, where account balances were not recorded, were recorded improperly, or improperly classified. With respect to revenues and expenses, we identified transactions that were recorded in accounting periods other than those in which the underlying economic events occurred. Specifically, some revenues and expenses that should have been reported in the 2023 accounting year were recorded in the 2024 accounting year, Another condition related to this finding is that accounting personnel do not close the books at year-end each year. This condition required SC UpLift's management to engage the services of a third-party Certified Public Accountant (CPA) to correct the underlying accounting records before year-end financial statements could be prepared. The accounting records required approximately 30 adjusting, reclassifying, or correcting journal entries, to get the accounting records ready for financial reporting. Cause of condition: The primary cause of this condition appears to be a lack of skill, knowledge, experience, and training of accounting personnel with respect to GAAP, and governmental bookkeeping, accounting, and financial reporting requirements. A secondary cause of this condition may be a lack of supervisory oversight and review of accounting transactions by a knowledgeable individual. Potential effect of condition: The potential effect of this condition is the possible material misstatement of interim and/or year-end financial reporting. Management may make decisions using inaccurate financial information, which could negatively affect SC Uplift's ability to secure additional funding for its programs. Section II - Financial Statement Findings (continued) Finding 2024-001 - Internal Controls Over Accounting and Financial Reporting (continued) Fiscal Year Finding Initially Occurred: FY 2024 (Initial Finding) Recommendation: We recommend Management strengthen daily accounting, and period-end closing and review procedures to ensure all transactions are recorded in the appropriate accounting period. Recommended actions include: 1. Implementing formal cutoff procedures for revenue, expense, asset, and liability transactions; 2. Strengthening supervisory review and approval of period-end journal entries and reconciliations; 3. Performing timely reconciliations of significant balance sheet accounts; 4. Providing training to accounting personnel regarding period recognition requirements and accounting cutoff principles; and 5. Establishing documented review controls to verify the completeness and accuracy of period-end financial reporting. Response of Responsible SC UpLift Official: Management of SC UpLift Community Outreach, Inc. acknowledges and understands the audit finding regarding financial reporting and year-end accounting procedures. We appreciate the auditor's recommendations and are committed to strengthening our accounting and financial reporting processes to ensure continued compliance with Generally Accepted Accounting Principles (GAAP), Uniform Guidance (2 CFR Part 200), and nonprofit financial reporting standards. As a small nonprofit organization with limited administrative resources, SC UpLift has consistently sought to maintain sound financial management practices by engaging qualified Certified Public Accountants (CPAs) to assist with our accounting and financial reporting. However, due to the financial constraints common among small nonprofit organizations, we have not always been able to retain those services on a continuous basis because of the associated costs. This was SC UpLift's first Single Audit, and we recognize that the increased reporting requirements associated with federal funding require additional expertise, stronger internal controls, and more formalized year-end closing procedures. We have already engaged a third-party CPA to assist with the preparation of the 2024 audited financial statements and will continue working closely with both our bookkeeper and CPA throughout the upcoming fiscal year to improve our financial reporting processes. Specifically, management will: • Develop and implement formal month-end and year-end closing procedures. • Perform timely reconciliations of all significant balance sheet accounts. • Strengthen supervisory review of journal entries, reconciliations, and financial reports. • Ensure revenues, expenses, assets, and liabilities are recorded in the proper accounting period. • Continue utilizing the expertise of our third-party CPA to review financial records, provide guidance on GAAP compliance, and assist with staff training and implementation of best practices. Management believes these corrective actions will significantly strengthen our internal controls over financial reporting and reduce the likelihood of similar findings in future audits. We are committed to continuous improvement and maintaining financial records that accurately reflect the organization's financial position while meeting all applicable federal and nonprofit reporting requirements. Target Completion Date: December 31, 2026

View Audit 411275

Finding 1229813 (2024-003)

Material Weakness 2024

Coquille Watershed Association

OR

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Recommendation: We recommend that the Organization establish and implement formal payroll rate documentation and approval controls. At a minimum, management should maintain documentation to support all initial salary/wage rates and subsequent rate changes; require documented approval by an appropria...

Recommendation: We recommend that the Organization establish and implement formal payroll rate documentation and approval controls. At a minimum, management should maintain documentation to support all initial salary/wage rates and subsequent rate changes; require documented approval by an appropriate supervisor, executive, or governing body designee before pay rate changes are entered into the payroll system; restrict access to the master rate spreadsheet and maintain version history or change logs, and require independent review of all pay rate changes before payroll is processed. Corrective action planned: At the end of 2025, the Organization began providing letters from the director to staff when any pay rate changes occurred. The board will provide such a letter to the director when the director’s rate changes. The Organization already had and continues to provide offer letters upon hiring staff that includes the initial rate. Payroll is now run by the Operations Manager and sent for approval by the Executive Director. Pay rate is reviewed as part of the submission process. Persons responsible for corrective action: Justin Queen, Executive Director Date by which the corrective action will be completed: Complete

View Audit 411097

Finding 1229774 (2024-001)

Material Weakness 2024

Iglesia De Dios Pentecostal, M.i.

PR

Reporting Internal Control / Segregation of Duties § 200.512

Corrective Action: Iglesia de Dios Pentecostal, M.I. has implemented procedures to strengthen its audit planning and federal compliance process to ensure that future program-specific audit reporting packages are submitted within the deadlines established by 2 CFR §200.512(a).S pecifica lly, manageme...

Corrective Action: Iglesia de Dios Pentecostal, M.I. has implemented procedures to strengthen its audit planning and federal compliance process to ensure that future program-specific audit reporting packages are submitted within the deadlines established by 2 CFR §200.512(a).S pecifica lly, management will: 1. Establish an annual compliance calendar identifying all federal reporting deadlines, including the due date for submission of the program-specific audit reporting package to the Federal Audit Clearinghouse (FAC). 2. Begin the auditor procurement or engagement renewal process sufficiently in advance of the fiscal year-end to allow adequate time for audit planning, fieldwork, report issuance, and timely submission of the reporting package. 3. Assign responsibility to a designated management official to monitor compliance with the audit timeline, communicate periodically with the independent auditor regarding the status of the engagement, and ensure that all required documentation is submitted on time. 4. Review the compliance calendar periodically throughout the year and document management's monitoring activities to ensure all critical milestones are met. Management believes these measures will significantly reduce the risk of future delays and will promote continued compliance with federal audit reporting requirements

View Audit 411063

Corrective Action Plans

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