Corrective Action Plans

Finding 1238058 (2025-005)

Material Weakness 2025

City of Aberdeen

SD

Material Weakness Reporting Internal Control / Segregation of Duties § 200.328

Finding 2025-005 Federal Agency Name: Department of Treasury Pass-Through Entity: South Dakota Department of Agriculture and Natural Resources Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: There was no review performed of the requi...

Finding 2025-005 Federal Agency Name: Department of Treasury Pass-Through Entity: South Dakota Department of Agriculture and Natural Resources Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: There was no review performed of the required annual report prior to its submission to ensure the accuracy and completeness of the reported information. Corrective Action Plan: The City will revise its reporting procedures to provide for a separate preparer and reviewer of required federal program reports. The reviewer will review the report for accuracy and completeness prior to submission, and completion of the review will be documented. Responsible Individual(s): Jordan McQuillen, Finance Officer Anticipated Completion Date: December 2026

View Audit 412872

Finding 1238050 (2025-002)

Material Weakness 2025

Community Health Center of Buffalo, Inc.

NY

Internal Control / Segregation of Duties

Audit Finding Reference: 2025-002 Corrective Action Plan: Timecard Review and Approval Documentation Finding: A significant deficiency was identified related to the lack of documented evidence that timecard review and approval controls were performed. Root Cause: The review and approval process exis...

Audit Finding Reference: 2025-002 Corrective Action Plan: Timecard Review and Approval Documentation Finding: A significant deficiency was identified related to the lack of documented evidence that timecard review and approval controls were performed. Root Cause: The review and approval process existed but formal documentation evidencing management review was not consistently retained. Corrective Action: Paylocity generates a Timecard Approvals Summary log for each payroll period. The report identifies employee timecard activity and includes evidence of supervisor approval through the system's Supervisor Approved indicator. The report will be submitted to the Director of Human Resources, who will review the report for completeness, verify supervisor approvals, investigate any exceptions, and document completion of the review by signing and dating the report. The signed report will be retained with payroll records as evidence the control was performed. Preventive Measures: Payroll procedures will be updated to require retention of the signed Timecard Approvals Summary report for each payroll cycle. Payroll and HR personnel will be trained on the revised documentation requirements. Periodic monitoring reviews will be performed by the Controller. Responsible Parties: Director of Human Resources, Payroll Department, and Controller. Implementation Date: Effective immediately beginning with the next payroll cycle. Evidence of Completion: Signed and dated Timecard Approvals Summary reports, updated payroll procedures, and monitoring documentation.

View Audit 412859

Finding 1238049 (2025-001)

Material Weakness 2025

Community Health Center of Buffalo, Inc.

NY

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

Audit Finding Reference: 2025-001 Corrective Action Plan: Reimbursement Request Review and Approval Documentation Finding: The Center was unable to provide documentation demonstrating that reimbursement requests submitted to federal funding agencies received supervisory review and approval by the Co...

Audit Finding Reference: 2025-001 Corrective Action Plan: Reimbursement Request Review and Approval Documentation Finding: The Center was unable to provide documentation demonstrating that reimbursement requests submitted to federal funding agencies received supervisory review and approval by the Controller prior to submission. While reimbursement requests were reviewed, evidence of such review and approval was not consistently documented and retained. Root Cause: The review and approval process existed; however, formal documentation evidencing the Controller’s review and approval was not consistently retained with the reimbursement request records. Corrective Action: The Center has implemented enhanced procedures to ensure that all reimbursement requests submitted under federal awards receive documented supervisory review and approval prior to submission. Grant accounting staff will prepare the reimbursement request and supporting documentation and submit the complete package to the Controller for review. The Controller will review the request for accuracy, allowability, allocability, reasonableness, adequate supporting documentation, reconciliation to grant records and approved budgets, and compliance with applicable federal regulations and award requirements. Approval will be documented through electronic approval, email authorization retained with the reimbursement records, or signature and date on the reimbursement package or standardized checklist prior to submission. Preventive Measures: The Center has developed a standardized reimbursement request checklist that must be completed and retained with each reimbursement package. Grant accounting personnel will be trained on the revised documentation requirements, and the Executive Director will perform quarterly spot checks of reimbursement request files to confirm that evidence of review and approval is consistently maintained. Any exceptions identified will be addressed through corrective training and process improvements. Responsible Parties: Controller, Grant Accounting Staff, and Executive Director. Implementation Date: Effective immediately upon adoption. Evidence of Completion: Completed reimbursement request checklists, documented Controller approvals through signature, electronic approval, or retained email authorization, supporting reimbursement documentation, and quarterly monitoring documentation.

View Audit 412859

Finding 1238043 (2025-002)

Material Weakness 2025

Housing Authority of the City of Pittsburgh

PA

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Finding 2025-002 U.S. Department of Housing and Urban Development Housing Voucher Cluster: Section 8 Housing Choice Vouchers and Mainstream VouchersALNs 14.871 & amp; 14.879 Eligibility and Reporting Maher Duessel Finding Condition: During our review of 40 tenant files prepared by the Authority as p...

Finding 2025-002 U.S. Department of Housing and Urban Development Housing Voucher Cluster: Section 8 Housing Choice Vouchers and Mainstream VouchersALNs 14.871 & amp; 14.879 Eligibility and Reporting Maher Duessel Finding Condition: During our review of 40 tenant files prepared by the Authority as part of the biennial reexamination process, we noted a lack of functioning internal controls, evidenced by 4 of the Authority’s internal control checklists not being completed or unable to be provided for audit, which led to the below exceptions in our testing. We noted one instance where a tenant recertification using the Form HUD-50058, Family Report (Form) (which provides eligibility and reporting information) was not completed on a timely basis. We also noted three instances where other documentation to support the reporting and eligibility assessment as part of completion of the HUD-50058 was not provided. This includes items such as support for income calculation and medical deductions. These exceptions indicate a lack of functioning internal controls and oversight to ensure compliance with HUD requirements related to timely and accurate tenant recertifications. HACP Management Response/Action Taken: Finding 2025-001 - Eligibility and Reporting Finding 2025-002 - U.S. Department of Housing and Urban Development Housing Voucher Cluster: Section 8 Housing Choice Vouchers and Mainstream Vouchers- ALNs 14.871 & 14.879 Eligibility and Reporting Summary and Corrective Action Plan: The audit identified continued, internal control weaknesses related to timely recertifications, completion of required internal control checklists, and documentation supporting income calculations and medical deductions. This is a repeat finding from 2021-2024. To address these deficiencies, the HACP plans to go live on October 1st, 2026, with BOB.ai, an artificial intelligence software solution platform built for Public Housing Authorities (PHAs) to assist with tasks to include rent calculations, recertifications, and case management. BOB.ai will support the timely processing and tracking of recertifications, helping to prevent late recertifications and identify outstanding actions before deadlines are missed. The system will also help ensure required forms and supporting documentation are submitted in full before the recertification is processed, reducing the risk of incomplete files and missing eligibility documentation. The HACP Housing Choice Voucher (HCV) Department is evaluating an additional workflow in DocuClass that will include a finalized checklist as part of the recertification is finalized. The HACP will utilize system-generated reports to monitor upcoming and overdue recertifications, with management regularly reviewing the reports and addressing outstanding items. Staff must complete all applicable internal control checklists, and supervisors will review files to confirm that required documentation and checklists are complete.tification workflow. The HCV management will perform the following actions to assist with ensuring internal compliance to include the following: • Conduct ongoing quality-control reviews and provide staff training on HUD-50058 requirements, documentation standards, and timeliness expectations. • Address recurring deficiencies through documented coaching and corrective action, as appropriate. • Continue to monitor recertification timeliness, documentation completeness, and internal control compliance through monthly reports and file reviews to ensure the corrective actions are effective and prevent recurrence of the finding. • Monitor control functions, staff productivity, work completion, and compliance with established processing timelines. These enhanced monitoring practices have increased management’s ability to identify work that is incomplete, delayed, or otherwise not meeting established performance expectations. • Holding staff accountable through documented coaching, performance management, and disciplinary action, when appropriate, in accordance with applicable HACP policies and procedures. Unfortunately, in some instances, the time required to identify, document, address, and monitor recurring performance deficiencies through the applicable disciplinary process results in work becoming overdue before the HACP can complete the personnel action or otherwise resolve the underlying staffing issue. The HACP recognizes the operational impact of these circumstances and is continuing to strengthen workload monitoring, supervisory oversight, and system-generated alerts. Also, workflow controls are being utilized to identify and address deficiencies as early as possible and minimize the impact of staff turnover and performance-related delays on program operations.

View Audit 412848

Finding 1238040 (2025-001)

Material Weakness 2025

Housing Authority of the City of Pittsburgh

PA

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Finding 2025-001 U.S. Department of Housing and Urban Development Moving to Work Demonstration Program - ALN 14.881 Eligibility and Reporting Repeat Finding from 2021 (2021-001), 2022 (2022-001), 2023 (2023-001), and 2024 (2024-001) Maher Duessel Finding Condition: During our review of 40 tenant fil...

Finding 2025-001 U.S. Department of Housing and Urban Development Moving to Work Demonstration Program - ALN 14.881 Eligibility and Reporting Repeat Finding from 2021 (2021-001), 2022 (2022-001), 2023 (2023-001), and 2024 (2024-001) Maher Duessel Finding Condition: During our review of 40 tenant files prepared by the Housing Authority of the City of Pittsburgh (Authority) as part of the biennial reexamination process, we noted a lack of functioning internal controls, evidenced by 4 of the Authority’s internal control checklists not being completed or unable to be provided for audit, which led to the below exceptions in our testing. We noted two instances where a tenant recertification using the Form HUD-50058, Family Report (Form) (which provides eligibility and reporting information) was not completed on a timely basis. We also noted three instances where other documentation to support the reporting and eligibility assessment as part of completion of the HUD- 50058 was not provided. This includes items such as support for income calculation and medical deductions. These exceptions indicate a lack of functioning internal controls and oversight to ensure compliance with HUD requirements related to timely and accurate tenant recertifications. HACP Management Response/Action Taken: Finding 2025-001 - Eligibility and Reporting Finding 2025-002 - U.S. Department of Housing and Urban Development Housing Voucher Cluster: Section 8 Housing Choice Vouchers and Mainstream Vouchers- ALNs 14.871 & 14.879 Eligibility and Reporting Summary and Corrective Action Plan: The audit identified continued, internal control weaknesses related to timely recertifications, completion of required internal control checklists, and documentation supporting income calculations and medical deductions. This is a repeat finding from 2021-2024. To address these deficiencies, the HACP plans to go live on October 1st, 2026, with BOB.ai, an artificial intelligence software solution platform built for Public Housing Authorities (PHAs) to assist with tasks to include rent calculations, recertifications, and case management. BOB.ai will support the timely processing and tracking of recertifications, helping to prevent late recertifications and identify outstanding actions before deadlines are missed. The system will also help ensure required forms and supporting documentation are submitted in full before the recertification is processed, reducing the risk of incomplete files and missing eligibility documentation. The HACP Housing Choice Voucher (HCV) Department is evaluating an additional workflow in DocuClass that will include a finalized checklist as part of the recertification workflow. The checklist will confirm that all required documents, eligibility information, and supporting documentation have been received and reviewed before the recertification is finalized. The HACP will utilize system-generated reports to monitor upcoming and overdue recertifications, with management regularly reviewing the reports and addressing outstanding items. Staff must complete all applicable internal control checklists, and supervisors will review files to confirm that required documentation and checklists are complete. The HCV management will perform the following actions to assist with ensuring internal compliance to include the following: Conduct ongoing quality-control reviews and provide staff training on HUD-50058 requirements, documentation standards, and timeliness expectations. • Address recurring deficiencies through documented coaching and corrective action, as appropriate. • Continue to monitor recertification timeliness, documentation completeness, and internal control compliance through monthly reports and file reviews to ensure the corrective actions are effective and prevent recurrence of the finding. • Monitor control functions, staff productivity, work completion, and compliance with established processing timelines. These enhanced monitoring practices have increased management’s ability to identify work that is incomplete, delayed, or otherwise not meeting established performance expectations. • Holding staff accountable through documented coaching, performance management, and disciplinary action, when appropriate, in accordance with applicable HACP policies and procedures. Unfortunately, in some instances, the time required to identify, document, address, and monitor recurring performance deficiencies through the applicable disciplinary process results in work becoming overdue before the HACP can complete the personnel action or otherwise resolve the underlying staffing issue.The HACP recognizes the operational impact of these circumstances and is continuing to strengthen workload monitoring, supervisory oversight, and system-generated alerts. Also, workflow controls are being utilized to identify and address deficiencies as early as possible and minimize the impact of staff turnover and performance-related delays on program operations.

View Audit 412848

Finding 1238031 (2025-008)

Material Weakness 2025

County of Allegheny, Pennsylvania

PA

HUD Housing Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

We review each invoice monthly as they are submitted. Most of the reviews are insuring the items being invoiced are eligible under HUD and making sure the amounts are added correctly. We will review more closely the match submitted. Match for HUD is now reported based on the entire funding and not b...

We review each invoice monthly as they are submitted. Most of the reviews are insuring the items being invoiced are eligible under HUD and making sure the amounts are added correctly. We will review more closely the match submitted. Match for HUD is now reported based on the entire funding and not by individual grants. All match from all HUD programs is added together and submitted on one final report at the end o f each funding year. The requirement is 25% on all budget lines except for Leasing. However, if one program’s match is short of the 25% requirement, the overall CoC is responsible for the full match, 50 additional DHS admin costs are used to represent the additional match needed. For our FY24—25 annual report to HUD, we submitted 29.63% in match for the overall funding. This amount did not include any additional HMIS (data system) costs, Allegheny Link (our coordinated entry system) costs or additional DHS admin costs. With these additional eligible activities, our matching amount could have been over 50%. Therefore, even if some identified items were considered ineligible our match would not be in jeopardy since we have a lot ofeligible costs that DHS covers that would be considered match. Timetable of dates for performance of planned corrective action steps including completion date:_ Active. Each month, invoices are reviewed, and match is documented on our overall invoice tracking sheet. Since 2024, the Fiscal Specialist has been checking the reported match in each invoice to properly track the overall matching total. We will continue this into 2026 and will be asking for speciﬁc breakdowns if or when reported match is questioned or misreported. Matching is also now a focus point of the annual monitoring by our ofﬁce. Criteria reviewed includes making sure programs meet both their pledge amount as well as their 25% match requirement based on spending. The review ensures that these activities are eligible expenses and that programs have adequate supporting documentation available. On 6/26/26, we sent an email indicating that we will be tracking and checking match differently going in FY26-27. We will be asking all providers to show match similar in each invoice and ensuring that calculated match on the invoice cover sheets will also show the submitted match per the backup provided. Hopefully this will clear up any discrepancies going forward. E. Description of monitoring to be p erformed to ensure corrective action steps are taken: The match will be reviewed monthly during each monthly invoice review. This has also been added to the Fiscal Monitoring process so that certain providers will be reviewed annually as well.

View Audit 412843

Finding 1238030 (2025-016)

Material Weakness 2025

County of Allegheny, Pennsylvania

PA

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties

Housing Division staff at Economic Development will complete monitoring of owner records related to tenant income eligibility and on-site monitoring for the 24 developments that are behind schedule. These 24 will be in addition to those that are scheduled to be monitored in the 2026 fiscal year (7/0...

Housing Division staff at Economic Development will complete monitoring of owner records related to tenant income eligibility and on-site monitoring for the 24 developments that are behind schedule. These 24 will be in addition to those that are scheduled to be monitored in the 2026 fiscal year (7/01/2026-6/30/2027), for a total of 40 properties in all. One property in question is in litigation at this moment so that visit may depend on advice of counsel on how to proceed. Timetable of dates for performance of planned corrective action steps including completion date: All of the above-noted properties will be monitored between this date and the end of the fiscal year – June 30, 2027. Staff will prioritize those properties that are behind schedule for completion by September 30, 2026. Description of monitoring to be performed to ensure corrective action steps are taken: Staff will prioritize those properties that are behind schedule with the goal of completion by the end of the 3rd calendar quarter (September 30, 2026). The Housing Division Manager will require staff to provide on a bi-weekly basis a list of properties that have been scheduled for visits as well as results of those recently completed (both for the 24 properties and regularly scheduled visits). Unlike in past years, the monitoring visits will be spread throughout the year so that they can be completed in an orderly fashion and staff will have more flexibility to adjust to the property managers’ schedules for the visits. Once this fiscal year is complete, all of the properties should be back on a triennial basis for monitoring.

View Audit 412843

Finding 1238029 (2025-015)

Material Weakness 2025

County of Allegheny, Pennsylvania

PA

Cash Management Internal Control / Segregation of Duties HUD Housing Programs

To Prevent this from occurring in the future, ACED will implement a formal review and reconciliation process prior to submitting all HOME Drawdown requests. Expenditures will be recorded in JDE and reconciled to the supporting documentation before any reimbursement is submitted to HUD. . A tracking ...

To Prevent this from occurring in the future, ACED will implement a formal review and reconciliation process prior to submitting all HOME Drawdown requests. Expenditures will be recorded in JDE and reconciled to the supporting documentation before any reimbursement is submitted to HUD. . A tracking process will be put in place to know the submission of payment request and the drawn down A supervisor review will verify that all expenditures have been accurately recorded, properly completed, and supported before drawdown is approved. Timetable of dates for performance of planned corrective action steps including completion date: Effective immediately, all HOME drawdown vouchers will require the corresponding journal entry to be completed and posted in JDE prior to submitting the drawdown request to HUD. This procedure will be followed for all future HOME reimbursements. Description of monitoring to be performed to ensure corrective action steps are taken: Management will review each HOME drawdown prior to submission to confirm that: the 1. The related journal entry has been completed and posted in JDE 2. The recorded expenditures agree to the drawdown voucher 3. Supporting documentation has been reconciled and approved.

View Audit 412843

Finding 1238014 (2025-001)

Material Weakness 2025

Mercy Haven Inc.

NY

Cash Management HUD Housing Programs Reporting

Management is aware of the finding and will develop the following action plan to correct. The CFO, John Murray, will be responsible to correct the recognized deficiency. The plan will be for management to contact and work with HUD Technical Assistance to try to get all rejected filings previously su...

Management is aware of the finding and will develop the following action plan to correct. The CFO, John Murray, will be responsible to correct the recognized deficiency. The plan will be for management to contact and work with HUD Technical Assistance to try to get all rejected filings previously submitted to accepted status. If problems cannot be resolved, management’s plan is to hire a new third party consultant to work with HUD Technical Assistance to submissions up to date.

View Audit 412836

Finding 1238011 (2025-003)

Material Weakness 2025

Lawrence County

IN

Internal Control / Segregation of Duties § 200.1 § 200.303

FINDING 2025-003 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Audit Findings: Material Weakness, Non-Compliance Contact Person Responsible for Corrective Action: Martha L. Arnold-Turner Contact Phone Number and Email Address: 812-275-3111, mturner@lawrencecounty....

FINDING 2025-003 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Audit Findings: Material Weakness, Non-Compliance Contact Person Responsible for Corrective Action: Martha L. Arnold-Turner Contact Phone Number and Email Address: 812-275-3111, mturner@lawrencecounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The county corrective action plan will be designed to implement a proper system of internal controls that will ensure compliance with the Reporting requirements of the grant and has already started with the report that was due in 2026. - The County will continue to implement internal controls that will prevent or correct noncompliance. For all Federal grants that require reports, after one person who understands the program and its requirements prepares the report, another person will continue to review the report for accuracy and completeness prior to it being submitted. Anticipated Completion Date: 12/31/2026

View Audit 412831

Finding 1238007 (2025-001)

Material Weakness 2025

City of Plymouth

MN

Reporting Internal Control / Segregation of Duties § 200.502 § 200.510

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS – ALL FEDERAL PROGRAMS 2025-001 Reporting Compliance Requirement – Schedule of Expenditures of Federal Awards (SEFA) Finding Summary 2 CFR § 200.510 requires that the City of Plymouth, Minnesota (the C...

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS – ALL FEDERAL PROGRAMS 2025-001 Reporting Compliance Requirement – Schedule of Expenditures of Federal Awards (SEFA) Finding Summary 2 CFR § 200.510 requires that the City of Plymouth, Minnesota (the City) prepare appropriate annual financial statements, including the Schedule of Expenditures of Federal Awards (SEFA), which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. The City did not have proper controls in place to ensure completeness of the SEFA and compliance with this requirement. During our audit, we noted the City did not have sufficient controls in place to ensure the accurate preparation of the SEFA in compliance with this requirement. The City’s SEFA for fiscal 2025 was understated by $1,587,830 due to the exclusion of federal expenditures incurred during the period, requiring a restatement of the previously issued SEFA and additional major program testing. Corrective Action Plan Actions Planned – The SEFA understatement resulted from a lack of coordination between the department that obtained and administered the federal grant and with finance department staff responsible for preparing the SEFA. To strengthen the year-end reporting process, the City has implemented updated procedures requiring a grant-level reconciliation of expenditures and revenues at year-end to ensure they are recorded in the proper fiscal period before preparing the SEFA. Federal grant coordinators and finance department staff will jointly review federal expenditures for accuracy and timing. This strengthened process will help ensure complete and accurate federal expenditure reporting in the SEFA. Official Responsible – The City’s Finance Director, Andrea Rich. Planned Completion Date – December 31, 2026. Disagreement With or Explanation of Finding – The City agrees with the finding and has implemented additional procedures to strengthen controls over reporting. Plan to Monitor – The City’s Finance Director, Andrea Rich, will verify that year-end grant reconciliations are completed and reviewed prior to SEFA preparation.

View Audit 412827

Finding 1237994 (2025-001)

Material Weakness 2025

Housing Authority of the City of Sheboygan

WI

Internal Control / Segregation of Duties

Corrective Action Planned: Management acknowledges the limitation in staffing levels and recognizes that complete segregation of duties is not currently feasible. To mitigate the risks associated with this condition, the Authority will strengthen compensating controls and increase oversight by manag...

Corrective Action Planned: Management acknowledges the limitation in staffing levels and recognizes that complete segregation of duties is not currently feasible. To mitigate the risks associated with this condition, the Authority will strengthen compensating controls and increase oversight by management and the Board of Commissioners. The following actions will be implemented: 1. Enhanced Board Oversight • The Board of Commissioners will continue to review and approve monthly financial statements, bank reconciliations, budget-to-actual reports, and check registers. • Financial reports will be presented at regularly scheduled board meetings, and evidence of review will be documented in meeting minutes. 2. Cash Disbursement Controls • All invoices will be reviewed and approved by the Executive Director prior to payment. • The Board of Commissioners will review disbursement listings on a monthly basis. • Checks and electronic payments exceeding established thresholds will require dual authorization where feasible. 3. Payroll Review Procedures • Payroll registers and supporting documentation will be reviewed and approved by the Executive Director prior to processing. • Changes to employee pay rates, benefits, or personnel status will be supported by approved documentation implemented by the Executive Director and reviewed by the Administrative Coordinator for accuracy. 4. Cash Receipt Monitoring • Cash receipt reports will be reconciled to bank deposits on a timely basis. • Management will periodically review deposit activity and reconciliation documentation to verify completeness and accuracy. 5. Independent Review of Financial Reporting • Financial statements, grant reporting, and required submissions will be reviewed by the Executive Director and presented to the Board for oversight. • Significant journal entries and adjusting entries will be reviewed and approved by management. • Additional assistance with financial reporting and compliance submissions from Hawkins Ash (Fee Accountant). 6. Annual Evaluation of Staffing and Internal Controls • Management and the Board will annually assess staffing levels and opportunities to further segregate duties as resources permit. • Any changes in staffing or technology that could improve internal controls will be evaluated and implemented when financially feasible.

View Audit 412821

Finding 1237989 (2025-002)

Material Weakness 2025

Housing Authority of the City of Wisconsin Rapids

WI

Subrecipient Monitoring HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Planned: The Authority will closely monitor all deposits to make sure that the amount of funds on deposit are protected by federal deposit insurance, corporate surety bond, or collateral.

View Audit 412805

Finding 1237988 (2025-001)

Material Weakness 2025

Housing Authority of the City of Wisconsin Rapids

WI

Internal Control / Segregation of Duties

Corrective Action Planned: Due to the Authority’s size, it is cost-prohibitive and impractical to achieve the ideal level of segregation of duties. The Authority has implemented as many controls and segregation of duties as practically possible for an organization of this size.

View Audit 412805

Finding 1237978 (2025-004)

Material Weakness 2025

NORTHERN ROCKY MOUNTAIN ECONOMIC DEVELOPMENT DISTRICT

MT

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

Northern Rocky Mountain Economic Development District (NRMEDD) agrees with the recommendation. The corrective action described in response to Finding 2 applies uniformly to disbursements of the RLF program funds, with no separate or exception process. Northern Rocky Mountain Economic Development Dis...

Northern Rocky Mountain Economic Development District (NRMEDD) agrees with the recommendation. The corrective action described in response to Finding 2 applies uniformly to disbursements of the RLF program funds, with no separate or exception process. Northern Rocky Mountain Economic Development District (NRMEDD) agrees with the recommendation. NRMEDD will establish a policy to place a secondary review on expenditures. The Executive Director approves invoices for payment and forwards them to the Bookkeeper who prepares the check for signature. Additionally, checks or disbursements exceeding $10,000 require Board approval. This uniform application ensures RLF disbursement receives the same level of control as all other organizational expenditures.

View Audit 412764

Finding 1237977 (2025-004)

Material Weakness 2025

BRADFORD CITY WATER AUTHORITY

PA

Internal Control / Segregation of Duties

Segregation of Duties - Auditor’s recommendation: Management should constantly be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable. Under these conditions, the most effective controls lie in the Board's know...

Segregation of Duties - Auditor’s recommendation: Management should constantly be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable. Under these conditions, the most effective controls lie in the Board's knowledge of matters relating to the Authority's operations. The Board's continued involvement in the Authority's operations is needed to mitigate the lack of segregated duties. The Authority could enhance its internal controls by having a member of the Board of Directors or someone independent of the preparer perform the following functions: review monthly bank reconciliations; review journal entries; review payroll journals that summarize employee compensation; and review check registers. Water Authority’s Response: Because of the limited number of personnel in the office, the Water Authority recognizes the limitations with regard to segregation of duties and therefore will consider mitigating controls. The Water Authority will continue to have a Supervisor review monthly bank reconciliations.

View Audit 412758

Finding 1237975 (2025-003)

Material Weakness 2025

BRADFORD CITY WATER AUTHORITY

PA

Internal Control / Segregation of Duties Reporting

Adjusting Journal Entries and Required Disclosures to the Financial Statements Auditor’s Recommendations: Although auditors may continue to provide such assistance both now and in the future, under the pronouncement, the Water Authority should continue to review and accept both proposed adjusting jo...

Adjusting Journal Entries and Required Disclosures to the Financial Statements Auditor’s Recommendations: Although auditors may continue to provide such assistance both now and in the future, under the pronouncement, the Water Authority should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the drafted financial statements. Water Authority’s Response: The Water Authority has received, reviewed and approved all journal entries, footnote disclosures and draft financial statements proposed for the current year audit. The Water Authority will continue to review and approve similar information in future years. Further, the Water Authority believes it has a thorough understanding of these financial statements and the ability to make informed judgments on those financial statements. Lastly, the Water Authority considers such assistance provided by the auditors to be the most cost effective manner to prepare such information.

View Audit 412758

Finding 1237967 (2025-001)

Material Weakness 2025

Georgia Association of Conservation Districts, Inc.

GA

Internal Control / Segregation of Duties Cash Management Reporting

2025-01: Segregation of Duties Name of contact person: Katie Sponberger, Executive Director Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compens...

2025-01: Segregation of Duties Name of contact person: Katie Sponberger, Executive Director Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. The costs of segregating certain duties exceeds the benefit and therefore, nonfinancial employees will be trained to provide some assistance in these areas. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 412743

Finding 1237946 (2025-006)

Material Weakness 2025

City of Vincennes

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.302 § 200.303 § 200.328 § 200.329

FINDING 2025-006 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-677-3959 clane@vincennes.in.gov Views of Responsible Officials: We concur with th...

FINDING 2025-006 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-677-3959 clane@vincennes.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: All reports will be prepared by the clerk’s office and will be reviewed for errors and omissions by someone who is knowledgeable about the reporting requirements prior to submission. Anticipated Completion Date: The corrective action plan will be implemented by December 31, 2026.

View Audit 412721

Finding 1237943 (2025-003)

Material Weakness 2025

City of Vincennes

IN

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

FINDING 2025-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Activities Allowed or Unallowed Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-882-6426 clane@vincennes.in.gov Views of Responsible Offici...

FINDING 2025-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Activities Allowed or Unallowed Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-882-6426 clane@vincennes.in.gov Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: The Clerk-Treasurer’s office will prepare APV for all claims, including those related to payroll benefits. The APVs will be included on the claims docket which will be presented to the City Council for their review and approval. Additionally, the Clerk-Treasurer will certify each claim prior to payment. Anticipated Completion Date: The corrective action plan will be implemented by December 31, 2026.

View Audit 412721

Finding 1237940 (2025-009)

Material Weakness 2025

Cincinnati Health Network, Inc.

OH

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.334 § 200.430

There is no disagreement with the audit finding. Action planned/taken in response to finding: Management concurs with the finding. The Organization acknowledges that employee compensation approvals were not consistently performed in accordance with documented procedures. To strengthen segregation of...

There is no disagreement with the audit finding. Action planned/taken in response to finding: Management concurs with the finding. The Organization acknowledges that employee compensation approvals were not consistently performed in accordance with documented procedures. To strengthen segregation of duties and oversight, responsibility for review and approval of employee compensation changes will be reassigned to appropriate executive leadership personnel independent of payroll processing responsibilities, consistent with the requirement under the Uniform Guidance (2 CFR 200.303) that the Organization establish and maintain effective internal control over federal awards. All pay raises will be initiated upon the recommendation of the respective department directors and must be approved by the Chief Executive Officer (CEO) or Chief Financial Officer (CFO) prior to processing. All compensation changes will be made in accordance with the Organization's Board-approved written compensation policies and will be reasonable and consistent with compensation paid for similar work, as required by the compensation standards for personal services under the Uniform Guidance (2 CFR 200.430). Human Resources will be responsible for ensuring that all pay raise documentation, including department director recommendations and CEO/CFO approvals, is properly completed and filed in the employee’s personnel record. Documentation of all compensation approvals will be maintained in accordance with the record retention requirements of the Uniform Guidance (2 CFR 200.334) and periodically reviewed to ensure compliance with established policies and procedures. Name(s) of the contact person(s) responsible for corrective action: Edward Murphy, Asante Muyungga, Charity Gutierrez, Anthony Parker, Bennett Baber, Jannell Robinson. Planned completion date for corrective action plan: June 30, 2027

View Audit 412715

Finding 1237934 (2025-005)

Material Weakness 2025

Cincinnati Health Network, Inc.

OH

Subrecipient Monitoring Eligibility Significant Deficiency § 200.303

There is no disagreement with the audit finding. Action planned/taken in response to finding: Management concurs with the finding. The Organization acknowledges that controls intended to ensure annual renewal of sliding fee discount applications were not consistently operating as intended. Managemen...

There is no disagreement with the audit finding. Action planned/taken in response to finding: Management concurs with the finding. The Organization acknowledges that controls intended to ensure annual renewal of sliding fee discount applications were not consistently operating as intended. Management is strengthening monitoring procedures by implementing tracking mechanisms to identify expiring applications and requiring verification of eligibility documentation prior to continued application of discounts, consistent with the requirement under Section 330(k)(3)(G) of the Public Health Service Act (42 U.S.C. 254b(k)(3)(G)) that health centers establish systems for sliding fee eligibility determination. In addition, management will provide additional training to all billing and front-desk staff on the sliding fee discount program, including eligibility determination, income and household-size documentation requirements, application renewal procedures, and the proper application of discounts in the practice management system. Periodic supervisory reviews will be performed to ensure compliance with the Board-approved sliding fee discount policy, consistent with the internal control requirements of the Uniform Guidance (2 CFR 200.303). Management will also review the sliding fee discount schedule on a regular basis, no less than annually, and will update it in a timely manner whenever necessary, including upon publication of the annual Federal Poverty Guidelines, so that discounts continue to be adjusted on the basis of each patient’s ability to pay as required by 42 CFR 51c.303(f), with all updates presented to the Board of Directors for approval and communicated promptly to billing staff. Documentation of staff training, schedule reviews, and Board approvals will be retained to demonstrate compliance with HRSA Health Center Program requirements, including Chapter 9 (Sliding Fee Discount Program) of the HRSA Health Center Program Compliance Manual. Name(s) of the contact person(s) responsible for corrective action: Edward Murphy, Asante Muyungga, Charity Gutierrez, Anthony Parker, Bennett Baber, Jannell Robinson. Planned completion date for corrective action plan: December 31st, 2026

View Audit 412715

Finding 1237930 (2025-002)

Material Weakness 2025

Cincinnati Health Network, Inc.

OH

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

There is no disagreement with the audit finding. Action planned in response to finding: Management concurs with the finding. The Organization recognizes that documentation and reconciliation procedures supporting the Uniform Data System (UDS) submission were not sufficient to demonstrate the accurac...

There is no disagreement with the audit finding. Action planned in response to finding: Management concurs with the finding. The Organization recognizes that documentation and reconciliation procedures supporting the Uniform Data System (UDS) submission were not sufficient to demonstrate the accuracy and completeness of all reported data elements. During 2026, management will implement formal procedures requiring each UDS reporting element to be supported by documented source data, reconciled to underlying records, and independently reviewed prior to submission. These procedures will include a pre-submission review checklist and internal timeline so that all reconciliations and supporting documentation are completed and reviewed in advance of the UDS reporting deadline. Responsibility for preparation, review, and approval of UDS reporting will be formally assigned and documented. To strengthen this review, management plans to hire additional senior management personnel, including an Accounting Manager, to support the Accounting Department and oversee reconciliation of the UDS financial tables (Tables 8A, 9D, and 9E) to the general ledger and audited financial statements. In addition, management plans to hire a Director of Risk and Compliance, who will be responsible for overseeing the Organization's compliance with HRSA Health Center Program requirements, including the UDS reporting process. The Director of Risk and Compliance will perform an independent review of the completed UDS submission prior to certification, verifying that each reported data element is supported by documented source data and reconciliations, and will periodically monitor adherence to the procedures described in this response, with results reported to the Chief Executive Officer (CEO) and the Board of Directors. Any discrepancies identified before or after submission will be documented, investigated, and corrected in a timely manner, including through the HRSA UDS review and revision process where applicable. Management will also provide additional training to all staff involved in collecting, preparing, and reviewing UDS data, covering HRSA UDS reporting requirements, data definitions, and documentation standards. In addition, management will establish document retention procedures to ensure all supporting schedules, reconciliations, and reports are maintained in a centralized location and readily available for future review. New policies requiring timely account reconciliations and the retention of supporting records will be monitored and reviewed regularly by the Chief Financial Officer (CFO) to ensure they are consistently followed. Name(s) of the contact person(s) responsible for corrective action: Edward Murphy, Asante Muyungga, Charity Gutierrez, Anthony Parker, Bennett Baber, Jannell Robinson. Planned completion date for corrective action plan: June 30th, 2027

View Audit 412715

Finding 1237929 (2025-002)

Material Weakness 2025

Town of North Liberty

IN

Subrecipient Monitoring Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has taken the steps to implement controls surrounding federal reporting for future grants to ensure accuracy in reporting. Responsible party and timeline for completion: Clerk Treasurer Vicki Kitche...

Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has taken the steps to implement controls surrounding federal reporting for future grants to ensure accuracy in reporting. Responsible party and timeline for completion: Clerk Treasurer Vicki Kitchen will get the sub-recipient removed for submittal for the final 2026 report that is filed in 2027. A work ticket was filed to correct the subrecipient but the Town of North Liberty was never contacted by the SLFRF. This is the only way I could get the annual report completed. I will work on the final SLFRF report submitted. The work can't be completed until the next required report is due in 2027.

View Audit 412700

Finding 1237767 (2025-001)

Material Weakness 2025

DUNELAND YMCA, INC.

IN

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.512

In 2026, procedures were implemented to strengthen oversight of Single Audit reporting requirements and ensure timely submission of future reporting packages. Responsibility for monitoring applicable filing deadlines has been assigned to designated finance personnel, with deadlines incorporated into...

In 2026, procedures were implemented to strengthen oversight of Single Audit reporting requirements and ensure timely submission of future reporting packages. Responsibility for monitoring applicable filing deadlines has been assigned to designated finance personnel, with deadlines incorporated into the Organization’s annual audit calendar. Finance personnel will also coordinate with the independent auditors throughout the audit process to monitor completion and submission requirements and will address any potential delays or required extensions prior to the applicable deadline.

View Audit 412694

Corrective Action Plans

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