Corrective Action Plans

Finding 1167757 (2025-007)

Material Weakness 2025

Joint School District No. 28-J of the Counties of Adams and Arapahoe

CO

Student Financial Aid Eligibility Internal Control / Segregation of Duties

Condition: The institution does not have a process or controls in place for a timely review of program eligibility, ECAR. Planned Corrective Action: The School District will establish a formal process to ensure timely and documented reviews of program eligibility in accordance with federal requireme...

Condition: The institution does not have a process or controls in place for a timely review of program eligibility, ECAR. Planned Corrective Action: The School District will establish a formal process to ensure timely and documented reviews of program eligibility in accordance with federal requirements. Staff will be trained on the new procedures, and the School District will implement internal controls to monitor program eligibility on a regular schedule. These steps will help ensure ongoing compliance and accurate determinations moving forward. Contact Person Responsible for corrective action: Almir Hodzic Anticipated Completion Date: June 30, 2026

View Audit 379034

Finding 1167745 (2025-002)

Material Weakness 2025

Brunswick County

NC

Eligibility Internal Control / Segregation of Duties

None reported Finding: 2025-001 Name of contact person: Corrective Action: Proposed Completion Date: Finding: 2025-002 Name of contact person: Corrective Action: Proposed Completion Date: Section III - Federal Award Findings and Question Costs Corrective Action Plan For the Year Ended June 30, 2025 ...

None reported Finding: 2025-001 Name of contact person: Corrective Action: Proposed Completion Date: Finding: 2025-002 Name of contact person: Corrective Action: Proposed Completion Date: Section III - Federal Award Findings and Question Costs Corrective Action Plan For the Year Ended June 30, 2025 Section II - Financial Statement Findings Corrective Actions for Findings 2025-001 and 2025-002 also apply to State requirements and State Awards. Sally Strickland, Medicaid Program Manager, and Robby Hall, Director of Social Services There will be training, additional case studies, a checklist sheet, and a knowledge test for the relevant programs. Sally Strickland, Medicaid Program Manager, and Robby Hall, Director of Social Services There will be training, additional case studies, a checklist sheet, and a knowledge test for the relevant programs. Training and additional case reads were started in November 2025. The agency will continue to complete additional training with individuals case workers as needed. Section IV - State Award Findings and Question Costs Training and additional case reads were started in August 2025. The agency will continue to complete additional training with individuals case workers as needed. 195

View Audit 379011

Finding 1167744 (2025-001)

Material Weakness 2025

Brunswick County

NC

Eligibility Internal Control / Segregation of Duties

None reported Finding: 2025-001 Name of contact person: Corrective Action: Proposed Completion Date: Finding: 2025-002 Name of contact person: Corrective Action: Proposed Completion Date: Section III - Federal Award Findings and Question Costs Corrective Action Plan For the Year Ended June 30, 2025 ...

None reported Finding: 2025-001 Name of contact person: Corrective Action: Proposed Completion Date: Finding: 2025-002 Name of contact person: Corrective Action: Proposed Completion Date: Section III - Federal Award Findings and Question Costs Corrective Action Plan For the Year Ended June 30, 2025 Section II - Financial Statement Findings Corrective Actions for Findings 2025-001 and 2025-002 also apply to State requirements and State Awards. Sally Strickland, Medicaid Program Manager, and Robby Hall, Director of Social Services There will be training, additional case studies, a checklist sheet, and a knowledge test for the relevant programs. Sally Strickland, Medicaid Program Manager, and Robby Hall, Director of Social Services There will be training, additional case studies, a checklist sheet, and a knowledge test for the relevant programs. Training and additional case reads were started in November 2025. The agency will continue to complete additional training with individuals case workers as needed. Section IV - State Award Findings and Question Costs Training and additional case reads were started in August 2025. The agency will continue to complete additional training with individuals case workers as needed. 195

View Audit 379011

Finding 1167737 (2025-002)

Material Weakness 2025

Marissa Community Unit School District No. 40

IL

Reporting Internal Control / Segregation of Duties

Condition: Expenditure reports were not filed in a timely manner. Recommendation: We recommend that steps are taken, including oversight by a second employe, to ensure that all quarterly expenditure reports are filed by the due dates. Management Response: Management will take the necessary steps to ...

Condition: Expenditure reports were not filed in a timely manner. Recommendation: We recommend that steps are taken, including oversight by a second employe, to ensure that all quarterly expenditure reports are filed by the due dates. Management Response: Management will take the necessary steps to file all quarterly expenditure reports on time in the future. Anticipated Date of Completion: June 30, 2026

View Audit 378982

Finding 1167727 (2025-002)

Material Weakness 2025

The Road Home

UT

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

Management agrees with the finding. The weakness occurred due to the implementation of a change in the accrual process not initially being fully documented as an additional task in the billing workflow. Our corrective action plan is as follows: • Rectify the financial impact of the identified duplic...

Management agrees with the finding. The weakness occurred due to the implementation of a change in the accrual process not initially being fully documented as an additional task in the billing workflow. Our corrective action plan is as follows: • Rectify the financial impact of the identified duplicated cost (which is isolated to a single billing period) via a billing adjustment to ensure the net reimbursement of program expenses by the relevant funder is accurate. • Document the rationale for the payroll accrual and its subsequent reversal, and the individual steps required at each stage of the billing and review processes. The CFO, Controller and Grant Billing Manager are responsible for implementing this action plan which will be complete by end of December 2025. In the interim, the payroll accrual and reversal process is being subject to particular and focused review during the monthly billing process to ensure compliance while we implement the long-term plan.

View Audit 378969

Finding 1167669 (2025-001)

Material Weakness 2025

South Central Cooperative

SD

Internal Control / Segregation of Duties Material Weakness Reporting

The South Central Cooperative Direcctor, Kristi Hilzendeger, is the contact person responsible for the corrective action plan for this finding. This finding is due to the size of the South Central Cooperative, which precludes staffing at a level sufficient to provide an ideal environment for interna...

The South Central Cooperative Direcctor, Kristi Hilzendeger, is the contact person responsible for the corrective action plan for this finding. This finding is due to the size of the South Central Cooperative, which precludes staffing at a level sufficient to provide an ideal environment for internal controls. The Cooperative has developed policies to help monitor the lack of segregatin of duties, but due to the size of the Cooperative it is not feasible, or fiscally responsible to implement anything else at this time. The Cooperative will continue to follow the controls currently in place.

View Audit 378949

Finding 1167665 (2025-004)

Material Weakness 2025

Town of North Haven, Connecticut

CT

Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency § 200.303

Allowable Costs - Special Education Cluster (IDEA) (Significant Deficiency - Other Matter) Description of Finding 1 employee’s pay rate was not updated to reflect the new fiscal year 2025 collective bargaining agreement for their specific union after its implementation in December 2024. Although ret...

Allowable Costs - Special Education Cluster (IDEA) (Significant Deficiency - Other Matter) Description of Finding 1 employee’s pay rate was not updated to reflect the new fiscal year 2025 collective bargaining agreement for their specific union after its implementation in December 2024. Although retroactive pay for hours worked prior to ratification was correctly calculated and paid, the payroll system continued using the prior contract’s rate for all subsequent pay periods through the end of the school year. This occurred due to a failure in the payroll update process following contract implementation. Statement of Concurrence or Nonconcurrence Management agrees with the finding. Corrective Action The Board of Education will implement additional controls over payroll updates and establish a documented process for updating pay rates immediately after contract ratification. Additionally, review and verification of rate changes, along with periodic reconciliation against approved salary schedules or union agreements, should be performed to ensure accuracy and compliance. Name of Contact Person Christian Strickland, BOE Chief Operating Officer Projected Completion Date June 30, 2025

View Audit 378913

Finding 1167657 (2025-002)

Material Weakness 2025

Town of North Haven, Connecticut

CT

Reporting Significant Deficiency Internal Control / Segregation of Duties

Reporting - Community Development Block Grants - Non-Entitlement (Significant Deficiency - Other Matter) Description of Finding The Town must adhere to the reporting submission deadlines established in its agreement with the State of Connecticut. The Town is required to submit the CT DOH Form S-730 ...

Reporting - Community Development Block Grants - Non-Entitlement (Significant Deficiency - Other Matter) Description of Finding The Town must adhere to the reporting submission deadlines established in its agreement with the State of Connecticut. The Town is required to submit the CT DOH Form S-730 for each six-month period during the project. The Town did not submit the required report for the period 7/1/2024-12/31/2024 on a timely basis. Statement of Concurrence or Nonconcurrence Management agrees with the finding. Corrective Action The Town will review its reporting processes and related controls to ensure that all grantor required forms are timely filed. Name of Contact Person Richard Monico, Director of Administration/Procurement Projected Completion Date June 30, 2025

View Audit 378913

Finding 1167656 (2025-001)

Material Weakness 2025

Cornbelt Educational Cooperative

SD

Internal Control / Segregation of Duties Material Weakness

The Cornbelt Educational Cooperative Business Manager, Pamela Selken is the contact person responsible for the corrective action plan for this finding. This finding is due to the limited number of staff employed in the Cooperative's business office. Staffing the office at an efficient and financiall...

The Cornbelt Educational Cooperative Business Manager, Pamela Selken is the contact person responsible for the corrective action plan for this finding. This finding is due to the limited number of staff employed in the Cooperative's business office. Staffing the office at an efficient and financially feasible level precludes the hiring of enough personnel to provide an ideal environment for the Internal controls. The Administration and Advisory Board is aware of the weakness in internal controls and will continue to develop policies and procedures and provide compensating controls to reduce the risk. We will also communicate this concern with our Board of Directors. The Cornbelt Educational Cooperative did adopt an Internal Controls and Procedures policy on March 13th, 2018 that does address many of these issues, and would ask for consideration reflecting this implementation. This finding will be an ongoing process, requiring continued analysis of processes and procedures in order to minimize the risk.

View Audit 378911

Finding 1167644 (2025-002)

Material Weakness 2025

City of Social Circle, Ga

GA

Reporting Internal Control / Segregation of Duties

Name of the Contact Person Responsible for the Corrective Action Plan: Toni Jo Howard, Finance Director. Anticipated Completion Date: June 30, 2026. Corrective Action Plan: The City will ensure that controls are in place to prevent recording duplicate expenditures

View Audit 378888

Finding 1167643 (2025-006)

Material Weakness 2025

North Idaho College

ID

Student Financial Aid Eligibility Material Weakness

Department of Education – Direct Programs ALN # 84.268, 84.063, 84.007, 84.033 Student Financial Assistance Cluster – Special Tests and Provision – Disbursement on Behalf of Students Finding Summary: Two students were identified who were not awarded the full amount of Pell for which they were qualif...

Department of Education – Direct Programs ALN # 84.268, 84.063, 84.007, 84.033 Student Financial Assistance Cluster – Special Tests and Provision – Disbursement on Behalf of Students Finding Summary: Two students were identified who were not awarded the full amount of Pell for which they were qualified. Both students were registered in the summer session. Responsible Individual: Director of Financial Aid Corrective Action Plan: The College will implement a control process to ensure all semesters are properly identified and taken into account when creating a financial aid package for students. An evaluation will be done to ensure that no students who are eligible for Pell are precluded from receiving it. Anticipated Completion Date: Spring 2026

View Audit 378885

Finding 1167631 (2025-003)

Material Weakness 2025

North Idaho College

ID

Student Financial Aid Material Weakness Internal Control / Segregation of Duties

Department of Education – Direct Programs ALN # 84.268, 84.063, 84.007, 84.033 Student Financial Assistance Cluster – Special Tests and Provision – Disbursement on Behalf of Students Finding Summary: During the review of the calculation of student disbursements, a student was noted whose awards exce...

Department of Education – Direct Programs ALN # 84.268, 84.063, 84.007, 84.033 Student Financial Assistance Cluster – Special Tests and Provision – Disbursement on Behalf of Students Finding Summary: During the review of the calculation of student disbursements, a student was noted whose awards exceed the unmet needs. This over award that was created was in the form of non-Title IV scholarships. Responsible Individual: Director of Financial Aid Corrective Action Plan: The Office of Financial Aid is refining and validating the process for monitoring unmet need and potential over-awarding. The College will put extra effort on ensuring that this situation does not re-occur and ensure that all staff are following the established process to evaluate unmet need. Anticipated Completion Date: Fall 2025

View Audit 378885

Finding 1167627 (2025-002)

Material Weakness 2025

North Idaho College

ID

Cash Management Material Weakness Reporting

Department of Education – Direct Programs ALN # 84.268, 84.063, 84.007, 84.003 Student Financial Assistance Cluster – Cash Management and Reporting Finding Summary: During the review of the reconciliation process, it was noted that only the month of January was reconciled as required by the DOE. The...

Department of Education – Direct Programs ALN # 84.268, 84.063, 84.007, 84.003 Student Financial Assistance Cluster – Cash Management and Reporting Finding Summary: During the review of the reconciliation process, it was noted that only the month of January was reconciled as required by the DOE. The school is required to reconcile funds received from G5 with actual disbursement records submitted to COD. The school is required to account for any differences between the DOE’s records and the school’s financial and business records. Responsible Individuals: Director of Financial Aid and Director of Finance Corrective Action Plan: The College will implement a process that requires regular reconciliation of funds received with disbursement records submitted to COD. This reconciliation will be reviewed by both the Director of Financial Aid and the Director of Finance to ensure the records are reconciled. Anticipated Completion Date: Fall 2025

View Audit 378885

Finding 1167623 (2025-001)

Material Weakness 2025

North Idaho College

ID

Special Tests & Provisions Student Financial Aid Material Weakness

Federal Agency Name: Department of Education – Direct Programs ALN #84.268, 84.063, 84.007, 84.033 Student Financial Assistance Cluster – Special Tests and Provisions – Returns to Title IV Finding Summary: During the review of the return to Title IV funds, there were eleven instances out of thirty i...

Federal Agency Name: Department of Education – Direct Programs ALN #84.268, 84.063, 84.007, 84.033 Student Financial Assistance Cluster – Special Tests and Provisions – Returns to Title IV Finding Summary: During the review of the return to Title IV funds, there were eleven instances out of thirty in which the Title IV funds to be returned were not calculated and returned if required within the 45-day maximum timeframe allowed. The R2T4 calculations for fall 2024 were not performed until February 2025. Responsible Individual(s): Director of Financial Aid Corrective Action Plan: This finding was due to the turnover of key personnel in the financial aid office during the academic year. Staffing in the office is currently stable and properly trained on regulations and the timing requirements and calculation of Return to Title IV. College is developing and refining a process to review and return Title IV funds in a timely manner. The calculations for subsequent semesters have been made in a timely manner. Anticipated Completion Date: Fall 2025

View Audit 378885

Finding 1167614 (2025-001)

Material Weakness 2025

Nineveh-Hensley-Jackson United School Corporation

IN

School Nutrition Programs Matching / Level of Effort / Earmarking Eligibility § 200.303

FINDING 2025-001 Finding Subject: Child Nutrition Cluster - Eligibility Contact Person Responsible for Corrective Action: Jacob Heuchan, Business Manager Contact Phone Number and Email Address: 317-878-2100, jheuchan@nhj.k12.in.us Views of Responsible Officials: We concur with the finding. Descripti...

FINDING 2025-001 Finding Subject: Child Nutrition Cluster - Eligibility Contact Person Responsible for Corrective Action: Jacob Heuchan, Business Manager Contact Phone Number and Email Address: 317-878-2100, jheuchan@nhj.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Business Manager and Food Service Director will work together to implement a system of controls surrounding eligibility. The Business Manager and Food Service Director will meet on a regular basis to verify eligibility outcomes to ensure accuracy. Anticipated Completion Date: Immediate. INDIANA STATE

View Audit 378845

Finding 1167570 (2025-003)

Material Weakness 2025

Stanly County

NC

Eligibility Internal Control / Segregation of Duties

Finding 2025-001 Name of contact person: Corrective Action: Proposed completion date: Finding 2025-002 Name of contact person: Corrective Action: Proposed completion date: Finding 2025-003 Name of contact person: Toby Hinson, Finance Director The County received a large amount of Utility invoices in...

Finding 2025-001 Name of contact person: Corrective Action: Proposed completion date: Finding 2025-002 Name of contact person: Corrective Action: Proposed completion date: Finding 2025-003 Name of contact person: Toby Hinson, Finance Director The County received a large amount of Utility invoices in July and August that were for services received prior to June 30th. Staff will monitor the Utility Fund budgets more closely going forward to better project the expenditures at year-end to provide more accuracy in preparing the last budget amendments for the year. Immediately. Section III - Federal Award Findings and Question Costs The County will make it a pratice going forward to make sure subsidary accounts receivable ledgers agree to the balance sheet. Immediately. Corrective Action Plan For the Year Ended June 30, 2025 Section II - Financial Statement Findings Toby Hinson, Finance Director Wendy Rachels, Tina Sanders, Sherrie Rush - Medicaid Unit Supervisors; and Michelle Richardson - Medicaid Quality Assurance Specialist. P| 704.986.3611 F| 704.986.0081 www.stanlycountync.gov Finance 1000 N. First Street, Suite 10B, Albemarle, NC 28001 186Corrective Action Plan For the Year Ended June 30, 2025 Corrective Action: Proposed Completion Date: Section III - Federal Award Findings and Question Costs (continued) Corrective Actions for Findings 2025-003 also applies to State requirements and State Awards. Conducting unit-wide refresher sessions and one-on-one coaching on critical verification requirements (e.g., income, assets, vehicles, life insurance, and transfer reviews) and proper use of system tools and reports for workload management. Strengthening documentation standards in the eligibility system and establishing routine supervisory checks at recertification. Implementing monthly monitoring of extension reports and ensuring recertifications are completed promptly. Enhancing quality assurance reviews, immediate follow-up on discrepancies, and reinforcing income calculation protocols across intake and ongoing units. All corrective measures are actively underway, with training completed by November 2025. Section IV - State Award Findings and Question Costs P| 704.986.3611 F| 704.986.0081 www.stanlycountync.gov Finance 1000 N. First Street, Suite 10B, Albemarle, NC 28001 187

View Audit 378668

Finding 1167559 (2025-001)

Material Weakness 2025

School District of Washington

MO

Subrecipient Monitoring Eligibility School Nutrition Programs

Finding 2025-001 Federal Program: Child Nutrition Cluster AL NO.: 10.553, 10.555 Federal Agency: U.S. Department of Agriculture Pass-Through Entity: Missouri Department of Elementary and Secondary Education Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various ...

Finding 2025-001 Federal Program: Child Nutrition Cluster AL NO.: 10.553, 10.555 Federal Agency: U.S. Department of Agriculture Pass-Through Entity: Missouri Department of Elementary and Secondary Education Award No.: As listed on the Schedule of Expenditures of Federal Awards Award Period: Various Compliance Requirement: Eligibility Views of the Responsible Officials: Starting in the 2025-2026 school year, the Child Nutrition annual application process will be done online, Before being finalized, it will be required for the Food Service Director to attach an electronic signature. All applications will be stored online for easy retrieval and less risk of misplacement or loss. Any paper applications that are submitted will be reviewed and manually signed by the Food Service Director. Paper applications will be filed in the Director's office. Contact person: Robin Kluesner Anticipated Completion Date: August 22, 2025

View Audit 378658

Finding 1167556 (2025-001)

Material Weakness 2025

Herkimer-Fulton-Hamilton-Otsego Boces

NY

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.430

Finding 2025-001 – Allowable Costs The BOCES concurs with the finding 2025-001. Corrective Action: The BOCES will implement the following corrective actions to be completed by November 30, 2025: 1. The BOCES will develop and implement new written policies and procedures for time and effort reporting...

Finding 2025-001 – Allowable Costs The BOCES concurs with the finding 2025-001. Corrective Action: The BOCES will implement the following corrective actions to be completed by November 30, 2025: 1. The BOCES will develop and implement new written policies and procedures for time and effort reporting. 2. All grant-funded employees will receive training on the new procedures. 3. The BOCES will implement a new system to track and certify employee time. Contact Person: Daniel Henner, Business Administrator (315) 796-9902 dhenner@herkimer-boces.org

View Audit 378652

Finding 1167546 (2025-001)

Material Weakness 2025

Spartanburg County School District Three

SC

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

The finance department will monitor federal budgets within GAPS and will do timely budget amendments with the SDE in order to make sure that all federal expenditures are spent within the proper function and object codes in GAPS.

View Audit 378623

Finding 1167497 (2025-002)

Material Weakness 2025

Community Action for Improvement, Inc.

GA

Significant Deficiency Internal Control / Segregation of Duties

Corrective Action Plan (CAP) Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to Finding: Management will implement formal governance procedures to monitor and maintain compliance with the required board composition. Manage...

Corrective Action Plan (CAP) Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to Finding: Management will implement formal governance procedures to monitor and maintain compliance with the required board composition. Management will work with the Board of Directors to ensure that Target Population seats are filled timely and that vacancies are tracked and addressed promptly. The Organization will periodically review board membership throughout the year to verify continued compliance with applicable CSBG requirements. Official Responsible for Ensuring CAP: The Board of Directors /Chief Executive Officer will be responsible for implementing the CAP. Planned Completion Date for CAP: The Organization will implement the recommended changes immediately. Plan to Monitor Completion of CAP: The Board of Directors will be monitoring this corrective action plan.

View Audit 378546

Finding 1167495 (2025-001)

Material Weakness 2025

Dima Iii, Inc.

DE

Internal Control / Segregation of Duties § 200.303

1. Finding 2025-001 a. Comments on the Finding and Each Recommendation: We concur with the finding that DIMA III, Inc. requires segregation of duties. We recognize that the current structure does not adequately separate key financial responsibilities, which could lead to potential risks. Segregation...

1. Finding 2025-001 a. Comments on the Finding and Each Recommendation: We concur with the finding that DIMA III, Inc. requires segregation of duties. We recognize that the current structure does not adequately separate key financial responsibilities, which could lead to potential risks. Segregation of duties is essential to maintaining the integrity of our operations and ensuring that no single individual has unchecked control over critical financial or compliance-related processes. b. Action(s) Taken or Planned on the Finding: 1. Implemented Monthly Oversight Meetings: We have 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 Financial Officer with expanded responsibilities over the accounting functions of the housing entities. We have also hired a Senior Director of Housing & Compliance. 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 378545

Finding 1167494 (2025-002)

Material Weakness 2025

Dima X, Inc.

DE

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

2. Finding 2025-002: Replacement Reserve Disbursements Without Required HUD Approval a. Comments on the Finding and Each Recommendation: We concur with this finding. Two disbursements from the replacement reserve account were made without obtaining required HUD approval prior to disbursement. Staff ...

2. Finding 2025-002: Replacement Reserve Disbursements Without Required HUD Approval a. Comments on the Finding and Each Recommendation: We concur with this finding. Two disbursements from the replacement reserve account were made without obtaining required HUD approval prior to disbursement. Staff turnover and the lack of a centralized tracking system contributed to this oversight. We recognize the need to strengthen our processes to ensure all replacement reserve withdrawals are properly authorized before funds are withdrawn from these restricted accounts. b. Action(s) Taken or Planned on the Finding: 1. Plans to Submit Outstanding Approval Requests to HUD: We will submit approval requests to HUD for the two unapproved disbursements by December 12, 2025. If HUD does not approve the withdrawals, we plan to return the $2,544 to the replacement reserve account. 2. Tracking Log and Checklist: We will establish a tracking log to monitor all replacement reserve approval requests, including due dates and responsible staff. A standardized checklist will be implemented to ensure approvals are obtained before any disbursements are made. 3. Staff Training: Staff will receive training on HUD replacement reserve requirements and the approval workflow by February 28, 2026. 4. Supervisor Review: All replacement reserve requests will be subject to supervisory review before submission and disbursement. Packages will be prepared and submitted at least 30 days before the planned disbursement date.

View Audit 378544

Finding 1167493 (2025-001)

Material Weakness 2025

Dima X, Inc.

DE

Internal Control / Segregation of Duties § 200.303

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 1. Finding 2025-001 a. Comments on the Finding and Each Recommendation: We concur with the finding that DIMA X, Inc. requires segregation of duties. We recognize that the current structure does not adequately sepa...

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 1. Finding 2025-001 a. Comments on the Finding and Each Recommendation: We concur with the finding that DIMA X, Inc. requires segregation of duties. We recognize that the current structure does not adequately separate key financial responsibilities, which could lead to potential risks. Segregation of duties is essential to maintaining the integrity of our operations and ensuring that no single individual has unchecked control over critical financial or compliance-related processes. b. Action(s) Taken or Planned on the Finding: 1. Implemented Monthly Oversight Meetings: We have 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 Financial Officer with expanded responsibilities over the accounting functions of the housing entities. We have also hired a Senior Director of Housing & Compliance. 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 378544

Finding 1167492 (2025-001)

Material Weakness 2025

Dima Ii, Inc.

DE

Internal Control / Segregation of Duties § 200.303

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 1. Finding 2025-001 a. Comments on the Finding and Each Recommendation: We concur with the finding that DIMA II, Inc. requires segregation of duties. We recognize that the current structure does not adequately sep...

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 1. Finding 2025-001 a. Comments on the Finding and Each Recommendation: We concur with the finding that DIMA II, Inc. requires segregation of duties. We recognize that the current structure does not adequately separate key financial responsibilities, which could lead to potential risks. Segregation of duties is essential to maintaining the integrity of our operations and ensuring that no single individual has unchecked control over critical financial or compliance-related processes. b. Action(s) Taken or Planned on the Finding: 1. Implemented Monthly Oversight Meetings: We have 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 Financial Officer with expanded responsibilities over the accounting functions of the housing entities. We have also hired a Senior Director of Housing & Compliance. 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 378543

Finding 1167429 (2025-003)

Material Weakness 2025

Lutheran Social Services of South Dakota

SD

Special Tests & Provisions HUD Housing Programs Significant Deficiency § 200.303

Federal Agency Name: Department of State Assistance Listing Number: 19.510 Program Name: U.S. Refugee Admissions Program Special Tests and Provisions Finding Summary: a. One instance was identified where documentation for both the initial home visit and the 30-day follow-up home visit was missing fr...

Federal Agency Name: Department of State Assistance Listing Number: 19.510 Program Name: U.S. Refugee Admissions Program Special Tests and Provisions Finding Summary: a. One instance was identified where documentation for both the initial home visit and the 30-day follow-up home visit was missing from the participant file. No case activity or other documentation was able to be provided to indicate that these visits were conducted in accordance with the federal program. b. One instance was identified where an expense was paid and reimbursed under the grant without evidence of a formal request, invoice support, review, or approval. Responsible Individuals: Nathan Beyer, Staci Jonson, Dana Boraas Corrective Action Plan: Procedures will be reviewed with staff to ensure staff are fully trained on required documentation needed to maintain a complete case file, and that documentation is being completed and retained. Anticipated Completion Date: December 31, 2025

View Audit 378522

Corrective Action Plans

Filters