Corrective Action Plans

Finding 1220156 (2025-001)

Material Weakness 2025

MS

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

Management’s Action Plan: Management concurs with the findings. The deficiency was due to a lapse in management oversight related to the review and approval of independent contractor timesheets. To strengthen internal controls and ensure compliance with federal requirements, management has implement...

Management’s Action Plan: Management concurs with the findings. The deficiency was due to a lapse in management oversight related to the review and approval of independent contractor timesheets. To strengthen internal controls and ensure compliance with federal requirements, management has implemented corrective actions through the full implementation of a new enterprise resource planning system, Fusion. Under this process, all timecards are now entered, reviewed, and approved directly within Fusion and cannot be processed for payment unless they have been formally approved by appropriate management personnel. This ensures proper documentation, accountability, and adherence to internal control policies. Name of Person Responsible for the Plan: Katherine Hill, Manager of Accounting Jason Lynn, Vice President of Finance and Controller Anticipated Completion Date of the Plan: Completed – fully implemented with the rollout of the Fusion system (May 2025).

View Audit 405309

Finding 1220139 (2025-005)

Material Weakness 2025

Dallas County

TX

Special Tests & Provisions Reporting Significant Deficiency § 200.303

Corrective action plan: Dallas County HCVP will expand inspection capacity by hiring additional full-time and contractual inspectors, including an Inspector Supervisor to ensure timely completion of all inspections. Additionally, the Housing Supervisor will review inspection status regularly to ensu...

Corrective action plan: Dallas County HCVP will expand inspection capacity by hiring additional full-time and contractual inspectors, including an Inspector Supervisor to ensure timely completion of all inspections. Additionally, the Housing Supervisor will review inspection status regularly to ensure compliance with HUDrelated inspection schedules. Increasing staffing levels will allow the program to meet HUD-required timeframes consistently and reduce the likelihood of delays. Implementation dates: September 30, 2026 Responsible persons: Kesete Yohannes, Assistant Director of Housing

View Audit 405307

Finding 1220137 (2025-003)

Material Weakness 2025

Dallas County

TX

Subrecipient Monitoring Eligibility HUD Housing Programs § 200.303

Corrective Action Plan: Dallas County HCVP leadership addressed EIV compliance during the April 2026 and May 2026 monthly staff meetings and will continue to emphasize the requirement. Review of meetings agendas dated April 22, 2026, and May 20, 2026, confirm that EIV compliance was discussed. Addit...

Corrective Action Plan: Dallas County HCVP leadership addressed EIV compliance during the April 2026 and May 2026 monthly staff meetings and will continue to emphasize the requirement. Review of meetings agendas dated April 22, 2026, and May 20, 2026, confirm that EIV compliance was discussed. Additionally, the HCVP Housing Supervisor issued an email to all staff reiterating the requirement to retain EIV reports for all transactions, including but limited to recertifications, interims, and relocations. Implementation Date: June 11, 2026 Responsible Party: Kesete Yohannes, Assistant Director of Housing

View Audit 405307

Finding 1220128 (2025-009)

Material Weakness 2025

Scotts Bluff County School District No. 16 Gering Public Schools

NE

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

American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) Fund – Assistance Listing No. 84.425 Recommendation: We recommend the District strengthen internal controls over ESSER-funded construction projects by ensuring all contracts contain required prevailing wage provisions ...

American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) Fund – Assistance Listing No. 84.425 Recommendation: We recommend the District strengthen internal controls over ESSER-funded construction projects by ensuring all contracts contain required prevailing wage provisions when applicable. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: If given ESSER funding again we will ensure the district abides by the adequate controls for funded contracts. Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

View Audit 405300

Finding 1220120 (2025-007)

Material Weakness 2025

Scotts Bluff County School District No. 16 Gering Public Schools

NE

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

American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) Fund – Assistance Listing No. 84.425 Recommendation: We recommend the District implement written procedures that require timely preparation and retention of documentation supporting the work performed and allocation me...

American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) Fund – Assistance Listing No. 84.425 Recommendation: We recommend the District implement written procedures that require timely preparation and retention of documentation supporting the work performed and allocation methodology and supervisory review/approval consistent with the District's policies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The district will ensure we are completing time and effort logs for staff who are federally funded. Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

View Audit 405300

Finding 1220084 (2025-001)

Material Weakness 2025

POVERTY & SOCIAL REFORM INSTITUTE, INC.D/B/A LEAPS AND BOUNDS FAMILY SERVICES

MI

Allowable Costs / Cost Principles Cash Management Significant Deficiency

Poverty and Social Reform Institute Dba Leaps and Bounds Family Services has updated the policies and procedures for the agency to reflect the Uniform Guidance requirements regarding the process and controls used to administer federal awards. These changes address the issue of non-compliance by form...

Poverty and Social Reform Institute Dba Leaps and Bounds Family Services has updated the policies and procedures for the agency to reflect the Uniform Guidance requirements regarding the process and controls used to administer federal awards. These changes address the issue of non-compliance by formally addressing the roles and responsibilities in writing of who at the agency is responsible for insuring that the Uniform Guidance is followed. The updated policy covers the areas of: allowable costs, cash management, procedures, and conflicts of interest. The new policy will be presented and reviewed for approval at the July 22nd, 2026, board meeting. We believe this corrective action plan will address the non-compliance and bring the agency into full compliance moving forward.

View Audit 405290

Finding 1220083 (2025-002)

Material Weakness 2025

Fulton Atlanta Community Action Authority, Inc.

GA

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

Comment #2025-001 COMPENSATION METHODOLOGY SHOULD BE REVIEWED FOR INCENTIVE PAYMENTS COMMUNITY SERVICES BLOCK GRANT AND LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM FAL #93.569 and 93.568 Views of Responsible Officials and Planned Corrective Actions: Management concurs with the recommendation. FACAA up...

Comment #2025-001 COMPENSATION METHODOLOGY SHOULD BE REVIEWED FOR INCENTIVE PAYMENTS COMMUNITY SERVICES BLOCK GRANT AND LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM FAL #93.569 and 93.568 Views of Responsible Officials and Planned Corrective Actions: Management concurs with the recommendation. FACAA updated its Incentive Compensation Policy, which was approved by the Board of Directors, in accordance with 2 CFR 200.430 and 2 CFR 200.303. The policy establishes the methodology for incentive payments, and all incentive payments have been documented and supported by appropriate records to ensure compliance with applicable federal requirements. Implementation Date: Effective immediately, our policies have been enhanced to clarify and support our methodology used during the periods noted under review, and for all subsequent periods. Responsible Person(s): Dr. Howard Grant, President/CEO

View Audit 405272

Finding 1220059 (2025-001)

Material Weakness 2025

Chisholm-Hibbing Airport Authority

MN

Internal Control / Segregation of Duties Reporting Significant Deficiency

Actions Planned - The Authority is not in position to hire additional staff members for the sole purpose of eliminated the segregation of duties finding from our audit. The Airport Office Adminstrator communicates with the Executive Director and commission members regarding all major account transac...

Actions Planned - The Authority is not in position to hire additional staff members for the sole purpose of eliminated the segregation of duties finding from our audit. The Airport Office Adminstrator communicates with the Executive Director and commission members regarding all major account transactions, including the recording of recurring and non-recurring jounral entry adjustments. The commission meets monthly and closely monitors the financial information provded to them. Official responsible: Airport Office Administrator Planned Completion Date - On-going monitoring Disagreement with Finding - none, the Authority concurs with the finding. Plan to Monitor - The Authority is aware of the situation and will monitor, as it deems appropriate. Monitoring will include commission member oversight for the interim and year-end reporting.

View Audit 405239

Finding 1220034 (2025-001)

Material Weakness 2025

Norfork School District

AR

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

Our district plans to adhere to the Davis-Bacon Act when utilizing federal funding.

View Audit 405229

Finding 1220033 (2025-001)

Material Weakness 2025

Gwinnett Walton Habitat for Humanity, Inc.

GA

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.507

Description of Finding: The organization did not complete and submit its Single Audit within the required timeframe due to special projects (mortgage sales) that dramatically limited staff bandwidth in key financial management positions, resulting in delays in audit coordination and reporting and th...

Description of Finding: The organization did not complete and submit its Single Audit within the required timeframe due to special projects (mortgage sales) that dramatically limited staff bandwidth in key financial management positions, resulting in delays in audit coordination and reporting and the timing of commencing the audit.Statement of Concurrence: The organization concurs with this finding.Corrective Action: The organization has resolved the underlying cause of this finding by streamlining the data collection process related to mortgage sales transactions. Furthermore, the organization is in the process of reorganizing the financial department to streamline workflows. The Staff Accountant in partnership with the Director of Finance & Administration are responsible for oversight of financial reporting, compliance with Uniform Guidance (2 CFR Part 200), and coordination of the Single Audit process.Corrective actions implemented include:• Departmental reorganization is underway to streamline workflows and provide clear ownership of departmental responsibilities (including single audit compliance) between Staff Accountant and Director of Finance and Administration.• Development of a formal audit timeline and internal milestones to ensure timely audit initiation, completion, and submission.• Strengthening of internal controls over financial reporting and audit documentation.• Ongoing communication and coordination with external auditors to ensure compliance with federal audit requirements. These actions ensure that future Single Audits will be completed and submitted timely in accordance with Uniform Guidance.Status of Finding: This finding resulted from unexpected special projects that limited financial staff bandwidth as well as fragmented workflows, which have both been addressed. Corrective action is in process.Projected Completion Date: Corrective action completed as of 6/5/2026, with ongoing monitoring incorporated into standard financial management procedures.

View Audit 405221

Finding 1220031 (2025-002)

Material Weakness 2025

Src, Inc.

NY

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

SRC will revise its Labor Recording Policy to establish a specific timeframe for the replacement of all interim employee signatures and supervisory approvals. While SRC believes that strong internal controls are currently in place for this process, we will review these controls and make updates as n...

SRC will revise its Labor Recording Policy to establish a specific timeframe for the replacement of all interim employee signatures and supervisory approvals. While SRC believes that strong internal controls are currently in place for this process, we will review these controls and make updates as needed to ensure continued compliance and effective monitoring. Contact Person Responsible for Corrective Action: Lisa Kennedy, Director, Corporate Controller Completion Date: Review of policy and procedures will be completed by September 30, 2026.

View Audit 405219

Finding 1219647 (2025-001)

Material Weakness 2025

Glens Falls Housing Authority

NY

Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION: Management is in agreement with the auditor’s recommendations. We are confident that our March 31, 2026 audit will be completed by the December 31, 2026 deadline. If there are questions regarding this corrective action plan, please contact Ms. Stephanie Nasr, Executive Director at...

CORRECTIVE ACTION: Management is in agreement with the auditor’s recommendations. We are confident that our March 31, 2026 audit will be completed by the December 31, 2026 deadline. If there are questions regarding this corrective action plan, please contact Ms. Stephanie Nasr, Executive Director at (518) 793-2583.

View Audit 405188

Finding 1219600 (2025-001)

Material Weakness 2025

The Trust for Tomorrow

NC

Procurement, Suspension & Debarment Cash Management Internal Control / Segregation of Duties

As noted above, The Trust for Tomorrow continues to add compensating controls each year when possible. For example, beginning in fiscal year 2026, the Organization’s outsourced accountant is slated to pick up additional responsibilities, such as preparation of bank reconciliations. We will continue ...

As noted above, The Trust for Tomorrow continues to add compensating controls each year when possible. For example, beginning in fiscal year 2026, the Organization’s outsourced accountant is slated to pick up additional responsibilities, such as preparation of bank reconciliations. We will continue to review our processes to determine where duties can be segregated amongst existing staff and/or outsourced accountant further. Lastly, the board will continue to provide close oversight of the Organization and evaluate that oversight on a consistent basis.

View Audit 405182

Finding 1219560 (2025-001)

Material Weakness 2025

Workforce Solutions Middle Rio Grande

TX

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Finding 2025-001 – Unallowable and Unallocable Expenditure Charged to a Federal Award

View Audit 405139

Finding 1219560 (2025-001)

Material Weakness 2025

Workforce Solutions Middle Rio Grande

TX

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Federal Agency: U.S. Department of Health and Human Services, passed thru the Texas Workforce Commission

View Audit 405139

Finding 1219560 (2025-001)

Material Weakness 2025

Workforce Solutions Middle Rio Grande

TX

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Assistance Listing Number: 93.575

View Audit 405139

Finding 1219560 (2025-001)

Material Weakness 2025

Workforce Solutions Middle Rio Grande

TX

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Type of Finding: Significant Deficiency/Noncompliance

View Audit 405139

Finding 1219560 (2025-001)

Material Weakness 2025

Workforce Solutions Middle Rio Grande

TX

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Compliance Requirement: Allowable Costs/Cost Principles

View Audit 405139

Finding 1219560 (2025-001)

Material Weakness 2025

Workforce Solutions Middle Rio Grande

TX

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Planned Corrective Action:

View Audit 405139

Finding 1219560 (2025-001)

Material Weakness 2025

Workforce Solutions Middle Rio Grande

TX

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

The Board will strengthen its internal control procedures over federal program expenditures by enhancing the review and approval process to ensure that all costs charged to federal awards are allowable, allocable, reasonable, and adequately supported in accordance with Uniform Guidance requirements ...

The Board will strengthen its internal control procedures over federal program expenditures by enhancing the review and approval process to ensure that all costs charged to federal awards are allowable, allocable, reasonable, and adequately supported in accordance with Uniform Guidance requirements and the terms and conditions of applicable grant awards. In addition, the Board will provide training to fiscal and program staff on Federal cost principles, allowability requirements, and appropriate cost allocation methodologies to improve compliance and consistency in the charging of expenditures to Federal (and State) programs.

View Audit 405139

Finding 1219560 (2025-001)

Material Weakness 2025

Workforce Solutions Middle Rio Grande

TX

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Prior to recording the expenditure of the virtual reality headsets on the general ledger, Board management sought guidance on multiple attempts from the Texas Workforce Commission (TWC) Fiscal T/A division regarding the appropriate treatment of the cost, but did not receive a response before payment...

Prior to recording the expenditure of the virtual reality headsets on the general ledger, Board management sought guidance on multiple attempts from the Texas Workforce Commission (TWC) Fiscal T/A division regarding the appropriate treatment of the cost, but did not receive a response before payment was required. However, the Board will continue to work with TWC to determine the appropriate resolution and disposition of the questioned costs and will implement any corrective actions necessary to ensure compliance with Texas Workforce Commission and the Federal requirements as prescribed by the Uniform Guidance.

View Audit 405139

Finding 1219560 (2025-001)

Material Weakness 2025

Workforce Solutions Middle Rio Grande

TX

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Responsible Person(s):

View Audit 405139

Finding 1219560 (2025-001)

Material Weakness 2025

Workforce Solutions Middle Rio Grande

TX