Corrective Action Plans

Finding 1166119 (2025-001)

Material Weakness 2025

Kencrest Housing PA 2007, Inc.

PA

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 2007, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and add...

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 2007, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and address of independent public accounting ﬁrm: WithumSmith+Brown, P.C. 1835 Market Street, 3rd Floor Philadelphia, PA, 19103 Audit period: July 1, 2024 – June 30, 2025 The ﬁndings from the June 30, 2025 schedule of ﬁndings and questioned costs are discussed below. The ﬁndings are numbered consistently with the number assigned in the schedule. Signiﬁcant Deﬁciency-Special Tests and Provisions – Project Funds Finding 2025-001 – Project funds are not held in an interest-bearing account. This is a repeat finding from June 30, 2024 (Finding 2004-001). 2025-001 Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Action Taken: Although Ken-Crest Housing Del II, Inc. did not use an interest-bearing account for project funds during the year ended June 30, 2025, in July 2025, management opened an interest-bearing account and all Project funds were transferred into that account. Date of Completion: July 2025 Follow up on Prior Year’s Findings and Questioned Costs: Finding 2024-001 was not resolved during 2025, therefore, it has been reported as finding 2025-001 for the year ended June 30, 2025. In July 2025, management resolved this finding as all Project funds were transferred into an interest-bearing account. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Arthur Anderson, CFO at Arthur.anderson@kencrest.org.

View Audit 376907

Finding 1166117 (2025-001)

Material Weakness 2025

Ken-Crest Housing PA 2006, Inc.

PA

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 2006, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and add...

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 2006, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and address of independent public accounting ﬁrm: WithumSmith+Brown, P.C. 1835 Market Street, 3rd Floor Philadelphia, PA, 19103 Audit period: July 1, 2024 – June 30, 2025 The ﬁndings from the June 30, 2025 schedule of ﬁndings and questioned costs are discussed below. The ﬁndings are numbered consistently with the number assigned in the schedule. Signiﬁcant Deﬁciency-Special Tests and Provisions – Project Funds Finding 2025-001 – Project funds are not held in an interest-bearing account. This is a repeat finding from June 30, 2024 (Finding 2004-001). 2025-001 Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Action Taken: Although Ken-Crest Housing Del II, Inc. did not use an interest-bearing account for project funds during the year ended June 30, 2025, in July 2025, management opened an interest-bearing account and all Project funds were transferred into that account. Date of Completion: July 2025 Follow up on Prior Year’s Findings and Questioned Costs: Finding 2024-001 was not resolved during 2025, therefore, it has been reported as finding 2025-001 for the year ended June 30, 2025. In July 2025, management resolved this finding as all Project funds were transferred into an interest-bearing account. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Arthur Anderson, CFO at Arthur.anderson@kencrest.org.

View Audit 376906

Finding 1166115 (2025-001)

Material Weakness 2025

Ken-Crest Housing PA 2002, Inc.

PA

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 2002, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and add...

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 2002, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and address of independent public accounting ﬁrm: WithumSmith+Brown, P.C. 1835 Market Street, 3rd Floor Philadelphia, PA, 19103 Audit period: July 1, 2024 – June 30, 2025 The ﬁndings from the June 30, 2025 schedule of ﬁndings and questioned costs are discussed below. The ﬁndings are numbered consistently with the number assigned in the schedule. Signiﬁcant Deﬁciency-Special Tests and Provisions – Project Funds Finding 2025-001 – Project funds are not held in an interest-bearing account. This is a repeat finding from June 30, 2024 (Finding 2004-001). 2025-001 Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Action Taken: Although Ken-Crest Housing Del II, Inc. did not use an interest-bearing account for project funds during the year ended June 30, 2025, in July 2025, management opened an interest-bearing account and all Project funds were transferred into that account. Date of Completion: July 2025 Follow up on Prior Year’s Findings and Questioned Costs: Finding 2024-001 was not resolved during 2025, therefore, it has been reported as finding 2025-001 for the year ended June 30, 2025. In July 2025, management resolved this finding as all Project funds were transferred into an interest-bearing account. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Arthur Anderson, CFO at Arthur.anderson@kencrest.org.

View Audit 376905

Finding 1166110 (2025-001)

Material Weakness 2025

Ken-Crest Housing PA 2001, Inc.

PA

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 2001, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and add...

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 2001, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and address of independent public accounting ﬁrm: WithumSmith+Brown, P.C. 1835 Market Street, 3rd Floor Philadelphia, PA, 19103 Audit period: July 1, 2024 – June 30, 2025 The ﬁndings from the June 30, 2025 schedule of ﬁndings and questioned costs are discussed below. The ﬁndings are numbered consistently with the number assigned in the schedule. Signiﬁcant Deﬁciency-Special Tests and Provisions – Project Funds Finding 2025-001 – Project funds are not held in an interest-bearing account. This is a repeat finding from June 30, 2024 (Finding 2004-001). 2025-001 Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Action Taken: Although Ken-Crest Housing Del II, Inc. did not use an interest-bearing account for project funds during the year ended June 30, 2025, in July 2025, management opened an interest-bearing account and all Project funds were transferred into that account. Date of Completion: July 2025 Follow up on Prior Year’s Findings and Questioned Costs: Finding 2024-001 was not resolved during 2025, therefore, it has been reported as finding 2025-001 for the year ended June 30, 2025. In July 2025, management resolved this finding as all Project funds were transferred into an interest-bearing account. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Arthur Anderson, CFO at Arthur.anderson@kencrest.org.

View Audit 376903

Finding 1166108 (2025-001)

Material Weakness 2025

Ken-Crest Housing Del Ii, Inc.

PA

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing DEL II, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and addr...

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing DEL II, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and address of independent public accounting ﬁrm: WithumSmith+Brown, P.C. 1835 Market Street, 3rd Floor Philadelphia, PA, 19103 Audit period: July 1, 2024 – June 30, 2025 The ﬁndings from the June 30, 2025 schedule of ﬁndings and questioned costs are discussed below. The ﬁndings are numbered consistently with the number assigned in the schedule. Signiﬁcant Deﬁciency-Special Tests and Provisions – Project Funds Finding 2025-001 – Project funds are not held in an interest-bearing account. This is a repeat finding from June 30, 2024 (Finding 2004-001). 2025-001 Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Action Taken: Although Ken-Crest Housing Del II, Inc. did not use an interest-bearing account for project funds during the year ended June 30, 2025, in July 2025, management opened an interest-bearing account and all Project funds were transferred into that account. Date of Completion: July 2025 Follow up on Prior Year’s Findings and Questioned Costs: Finding 2024-001 was not resolved during 2025, therefore, it has been reported as finding 2025-001 for the year ended June 30, 2025. In July 2025, management resolved this finding as all Project funds were transferred into an interest-bearing account. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Arthur Anderson, CFO at Arthur.anderson@kencrest.org.

View Audit 376902

Finding 1166106 (2025-003)

Material Weakness 2025

Housing Authority of the City of Paterson

NJ

Internal Control / Segregation of Duties Eligibility HUD Housing Programs

Finding 2025-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material weakness in Inte...

Finding 2025-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material weakness in Internal Control over Compliance for Eligibility Finding 2025-003 (continued) Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit and the Authority failed to properly calculate the tenant's rent payments using documentation from third party income verification. Context: There are approximately 834 units. Of a sample size of twenty three (23) tenant files, the following was noted: Original Applications were missing in thirteen (13) files. Citizenship Declarations were missing in five (5) files. Verification of income was missing in eight (8) files. The Authority also failed to properly calculate the rent payments of four (4) tenants by not utilizing documentation from third party income verification. Our sample size is statistically valid. Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files and the calculation of rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure eligibility compliance with the Uniform Guidance and the compliance supplement. Authority's response: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing Program to ensure that established internal control policies are being followed on a timely basis. Views of responsible officials and planned corrective action: Ms. Irma Gorham, Executive Director is responsible to remedy the deficiency by March 31, 2026.

View Audit 376899

Finding 1166105 (2025-002)

Material Weakness 2025

Housing Authority of the City of Paterson

NJ

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

Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Non Compliance Material to the Financial Statements: ...

Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant deficiency in Internal Control over Compliance for Special Tests and Provisions Finding 2025-002 (continued) Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports are required to be maintained and available for examination at the time of audit. For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the annual inspection period. Additionally, there were units that failed inspections and did not pass reinspection within 30 days without penalty. Context: There are approximately two thousand seven hundred fifty six (2,756) units. Of a sample size of thirty seven (37) files, three (3) annual inspections, were not completed in a timely manner. Additionally, there are approximately one thousand two hundred forty seven (1,247) units with failed inspections. Of a sample size of twenty five (25) units with failed inspections, four units (4) unit did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Cause: The Authority did not perform timely annual inspections and follow up to failed inspections in accordance with program requirements. Effect: The Housing Voucher Cluster Program is in non-compliance with the with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance related to HQS inspections in accordance with the Uniform Guidance and the compliance supplement. Authority's Response: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies related to HQS inspections are being followed on a timely basis. Views of responsible officials and planned corrective action: Ms. Irma Gorham, Executive Director is responsible to remedy the deficiency by March 31, 2026.

View Audit 376899

Finding 1166104 (2025-001)

Material Weakness 2025

Housing Authority of the City of Paterson

NJ

HUD Housing Programs Internal Control / Segregation of Duties Eligibility

Finding 2025-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Number: 14.871 & 14.EHV Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material weakness in Int...

Finding 2025-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Number: 14.871 & 14.EHV Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Finding 2025-001 (continued) Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit and the Authority included income that was miscalculated during the annual recertification. Context: Of a sample size of thirty-seven (37) tenant files, the following information was unavailable for examination at the time of audit: • Original application was missing in one (1) file • Citizenship declaration was missing in one (1) file • Signed lease was missing in one (1) file • Verification of income was missing in four (4) files • HUD form 50058 was not timely filed for one (1) file In addition, three (3) tenants' annual recertifications (HUD-50058 form) included income that was miscalculated. Our sample size is statistically valid. Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered and designed a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Voucher Cluster program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure eligibility compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster Program to ensure that established internal control policies are being followed on a timely basis. Views of responsible officials and planned corrective action: Ms. Irma Gorham, Executive Director is responsible to remedy the deficiency by March 31, 2026.

View Audit 376899

Finding 1166103 (2025-001)

Material Weakness 2025

Ken-Crest Housing De 2003, Inc.

PA

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing DE 2003, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and add...

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing DE 2003, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and address of independent public accounting ﬁrm: WithumSmith+Brown, P.C. 1835 Market Street, 3rd Floor Philadelphia, PA, 19103 Audit period: July 1, 2024 – June 30, 2025 The ﬁndings from the June 30, 2025 schedule of ﬁndings and questioned costs are discussed below. The ﬁndings are numbered consistently with the number assigned in the schedule. Signiﬁcant Deﬁciency-Special Tests and Provisions – Project Funds Finding 2025-001 – Project funds are not held in an interest-bearing account. This is a repeat finding from June 30, 2024 (Finding 2004-001). 2025-001 Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Action Taken: Although Ken-Crest Housing Del II, Inc. did not use an interest-bearing account for project funds during the year ended June 30, 2025, in July 2025, management opened an interest-bearing account and all Project funds were transferred into that account. Date of Completion: July 2025 Follow up on Prior Year’s Findings and Questioned Costs: Finding 2024-001 was not resolved during 2025, therefore, it has been reported as finding 2025-001 for the year ended June 30, 2025. In July 2025, management resolved this finding as all Project funds were transferred into an interest-bearing account. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Arthur Anderson, CFO at Arthur.anderson@kencrest.org.

View Audit 376898

Finding 1166101 (2025-001)

Material Weakness 2025

Ken-Crest Housing PA 99, Inc.

PA

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 99, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and addre...

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 99, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and address of independent public accounting ﬁrm: WithumSmith+Brown, P.C. 1835 Market Street, 3rd Floor Philadelphia, PA, 19103 Audit period: July 1, 2024 – June 30, 2025 The ﬁndings from the June 30, 2025 schedule of ﬁndings and questioned costs are discussed below. The ﬁndings are numbered consistently with the number assigned in the schedule. Signiﬁcant Deﬁciency-Special Tests and Provisions – Project Funds Finding 2025-001 – Project funds are not held in an interest-bearing account. This is a repeat finding from June 30, 2024 (Finding 2004-001). 2025-001 Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Action Taken: Although Ken-Crest Housing Del II, Inc. did not use an interest-bearing account for project funds during the year ended June 30, 2025, in July 2025, management opened an interest-bearing account and all Project funds were transferred into that account. Date of Completion: July 2025 Follow up on Prior Year’s Findings and Questioned Costs: Finding 2024-001 was not resolved during 2025, therefore, it has been reported as finding 2025-001 for the year ended June 30, 2025. In July 2025, management resolved this finding as all Project funds were transferred into an interest-bearing account. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Arthur Anderson, CFO at Arthur.anderson@kencrest.org.

View Audit 376897

Finding 1166017 (2025-001)

Material Weakness 2025

Wheeler Clinic, Inc.

CT

Reporting Significant Deficiency Internal Control / Segregation of Duties

Wheeler Clinic, Inc. has reviewed the current approval processes. As of October 9, 2025, Wheeler Clinic, Inc. has formally implemented a process change removing any universal approval practices effective immediately. Wheeler Clinic, Inc. has also implemented a process that requires all managers/supe...

Wheeler Clinic, Inc. has reviewed the current approval processes. As of October 9, 2025, Wheeler Clinic, Inc. has formally implemented a process change removing any universal approval practices effective immediately. Wheeler Clinic, Inc. has also implemented a process that requires all managers/supervisors to authorize timesheets by a designated time on the subsequent Monday of the payroll cycle prior to payroll processing in order for payroll to be processed.

View Audit 376842

Finding 1165914 (2025-001)

Material Weakness 2025

School District U-46

IL

Internal Control / Segregation of Duties

The District will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. The District is aware and will be reviewing and amending monthly and year...

The District will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. The District is aware and will be reviewing and amending monthly and year-end procedures.

View Audit 376820

Finding 1165912 (2025-002)

Material Weakness 2025

Otto-Eldred School District

PA

Internal Control / Segregation of Duties Cash Management

Adjusting Journal Entries, Required Disclosures, and Draft Financial Statements, Year ended June 30, 2025. Auditor's Recommendation: Although auditors may continue to provide such assistance both now and, in the future, under the new pronouncement, the District should continue to review and accept b...

Adjusting Journal Entries, Required Disclosures, and Draft Financial Statements, Year ended June 30, 2025. Auditor's Recommendation: Although auditors may continue to provide such assistance both now and, in the future, under the new pronouncement, the District should continue to review and accept both propsed adjusting journal entries and footnore disclosures, along with the draft financial statements. District's Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgements based on these financial statements.

View Audit 376816

Finding 1165891 (2025-001)

Material Weakness 2025

Shenandoah Valley School District

PA

Internal Control / Segregation of Duties School Nutrition Programs

Corrective Action Plan The Shenandoah Valley School District respectfully submits the following corrective action plan for the year ended June 30, 2025. The findings from the Single Audit Report Year Ended June 30, 2025 included in the schedule of findings and questioned costs are discussed below. F...

Corrective Action Plan The Shenandoah Valley School District respectfully submits the following corrective action plan for the year ended June 30, 2025. The findings from the Single Audit Report Year Ended June 30, 2025 included in the schedule of findings and questioned costs are discussed below. Finding 2025-001: Activities Allowed – Child Nutrition Cluster Contact Person: Anthony Demalis, Business Manager Recommendation: The District should follow its established internal control procedures over activities allowed requirements. Action: Since this was an inadvertent clerical error, District will continue to review its’ internal control procedures over payroll and established procedures to ensure employee pay rates show signs of approval prior to payroll being processed. Date for Completion: December 1, 2025

View Audit 376814

Finding 1165886 (2025-002)

Material Weakness 2025

Huntingdon Area School District

PA

Material Weakness School Nutrition Programs Internal Control / Segregation of Duties

Finding 2025-002 Child Nutrition Cluster #10.555 & #10.553 Condition: The District did not have internal control over compliance procedures designed and implemented for the compliance of Paid Lunch Equity requirements. Views of Responsible Officials: The district's Business Manager is the responsibl...

Finding 2025-002 Child Nutrition Cluster #10.555 & #10.553 Condition: The District did not have internal control over compliance procedures designed and implemented for the compliance of Paid Lunch Equity requirements. Views of Responsible Officials: The district's Business Manager is the responsible official for federal programs. The Business Manager stated that they understand and agree with the finding. Planned Corrective Action: A documented process will be designed and implemented for the review of the Paid Lunch Equity calculation. Person Responsible for Corrective Action Plan: Business Manager Anticipated Completion Date: January 2, 2026

View Audit 376810

Finding 1165883 (2025-001)

Material Weakness 2025

Friends of the North Country, Inc.

NY

Internal Control / Segregation of Duties

Name of auditee: Friends of the North Country, Inc. TIN: 14-1626314 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: March 31, 2025 CAP prepared by: Crystal Narducci Executive Director (518) 293-5045 Current Finding on the Schedule of Findings and Questioned Costs and Recommendati...

Name of auditee: Friends of the North Country, Inc. TIN: 14-1626314 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: March 31, 2025 CAP prepared by: Crystal Narducci Executive Director (518) 293-5045 Current Finding on the Schedule of Findings and Questioned Costs and Recommendations (1) Finding 2025-001 (a) Comments on the findings and recommendation - Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken - Management has certified and submitted the Form SF-SAC to the Federal Audit Clearinghouse for the year ended March 31, 2024 on February 21, 2025. Management will submit the Form SF-SAC to the Federal Audit Clearinghouse within 30 days after the receipt of the auditor’s report for future submissions.

View Audit 376804

Finding 1165862 (2025-002)

Material Weakness 2025

Steel City Academy, Inc.

IN

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding 2025-002 – Maintenance of Effort Significant Deficiency | Federal Program: Title I, Part A (84.010) Response Steel City Academy recognizes that Maintenance of Effort (MOE) calculations rely on accurate cash-basis expense data reported on the Form 9 and that prior inaccuracies could impact ID...

Finding 2025-002 – Maintenance of Effort Significant Deficiency | Federal Program: Title I, Part A (84.010) Response Steel City Academy recognizes that Maintenance of Effort (MOE) calculations rely on accurate cash-basis expense data reported on the Form 9 and that prior inaccuracies could impact IDOE’s calculations. 24 Beginning July 1, 2025, the School implemented comprehensive corrective actions to improve Form 9 reporting, fund balance accuracy, and expense classification by consolidating all financial activity into QuickBooks Online. All expenses are now recorded by the Finance Coordinator using fund, program, and object codes aligned with IDOE reporting guidelines, ensuring Form 9 expenses are fully supported by underlying financial records. To ensure accurate fund balances, audited reconciliation worksheets are used to validate beginning-of-year balances prior to Form 9 submission. Grant expenditures and remaining balances are reviewed monthly to ensure proper classification and alignment between expenses and recognized revenue. The School has also engaged directly with the IDOE Form 9 team for technical guidance. The Executive Director provides direct oversight and performs a final review of Form 9 submissions to ensure compliance with reporting guidelines. These corrective actions are designed to ensure accurate, reliable Form 9 reporting and to prevent recurrence of this deficiency in future reporting periods.

View Audit 376759

Finding 1165832 (2025-003)

Material Weakness 2025

Independent School District No. 361

MN

Allowable Costs / Cost Principles Cash Management Reporting

Recommendation: We recommend the District have someone reviewing all Clics reports before they are submitted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will implement policies to ensure the Clics...

Recommendation: We recommend the District have someone reviewing all Clics reports before they are submitted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will implement policies to ensure the Clics reports are reviewed before submission. Name of the contact person responsible for corrective action: Lauren Syrup, Business Manager Planned completion date for corrective action plan: June 30, 2026

View Audit 376704

Finding 1165812 (2025-001)

Material Weakness 2025

Mount David Housing, Inc.

ME

Reporting Internal Control / Segregation of Duties

1. Finding 2025-001: a. We concur that material audit adjustments related to accounts receivable, revenue, prepaid assets, fixed assets, accounts payable and other current liabilities, and expenses were needed in order to present the financial statements in accordance with generally accepted account...

1. Finding 2025-001: a. We concur that material audit adjustments related to accounts receivable, revenue, prepaid assets, fixed assets, accounts payable and other current liabilities, and expenses were needed in order to present the financial statements in accordance with generally accepted accounting principles, and are in agreement with the recommendations to implement staff training on monthly and annual procedures over financial close and reporting. b. Action(s) Taken on the Finding: We have posted the adjustments recommended by the auditors. Management will conduct staff training on monthly and annual procedures over financial close and reporting by December 31, 2025.

View Audit 376677

Finding 1165801 (2025-001)

Material Weakness 2025

Chase Brexton Health Services, Inc.

MD

Eligibility Internal Control / Segregation of Duties

Identifying Number: 2025-001 - Eligibility Finding: Under the Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program, eligible individuals receive...

Identifying Number: 2025-001 - Eligibility Finding: Under the Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program, eligible individuals receive a sliding fee discount on amounts owed for health center services based on family size and income levels in comparison to the federal poverty guidelines. The Organization should maintain records providing evidence that the patients included under this program are eligible. However, during the compliance testing of 43 sample items, there were two instances where the patients had properly submitted their forms, but the Organization applied the incorrect sliding fee category. There is no known monetary impact, improper expenditure of funds or questioned costs identified. However, if the Organization does not strengthen the internal controls in regard to the eligibility determination process, there is a possible effect on the ability of the Organization to obtain additional funding under this program if ineligible patients are being treated with grant funding. Corrective Action Plan: The Operations and Social Work leadership met to determine a corrective action plan to address the audit findings for sliding fee scale eligibility. The leadership, under the direction of Alice Sliwka, Chief Operating and Quality Officer, will re-educate all appropriate staff who complete all eligibility ensuring standardization of naming convention for all documents received. The leadership will also review and edit the policy as the frequency of review has changed from every six months to annually. Monthly audits will continue to be completed to address any individual issue of non-compliance. Monthly follow-up and review of all findings will be shared with the Quality Excellence Committee until full compliance is maintained. Chase Brexton anticipates completion of this by March 31, 2026.

View Audit 376624

Finding 1165788 (2025-003)

Material Weakness 2025

Pinn Gardens, Inc.

PA

Internal Control / Segregation of Duties

Management agrees with the above and will follow the organization’s capitalization policy.

View Audit 376576

Finding 1165786 (2025-002)

Material Weakness 2025

Pinn Gardens, Inc.

PA

Internal Control / Segregation of Duties

Management agrees with the above and will conduct Board of Directors meetings annually.

View Audit 376576

Finding 1165784 (2025-001)

Material Weakness 2025

Pinn Gardens, Inc.

PA

Internal Control / Segregation of Duties

Management agrees with the above and will reconcile all cash and reserve accounts on a monthly basis.

View Audit 376576

Finding 1165776 (2025-004)

Material Weakness 2025

Jasper-Troupsburg Central School District

NY

Internal Control / Segregation of Duties

Adjusting Journal Entries and Required Disclosures to the Financial Statements: Year ended June 30, 2025. Auditor's Recommendation: Although auditors may continue to provide such assistance both now and, in the future, under the pronouncement, the District should continue to review and accept both p...

Adjusting Journal Entries and Required Disclosures to the Financial Statements: Year ended June 30, 2025. Auditor's Recommendation: Although auditors may continue to provide such assistance both now and, in the future, under the pronouncement, the District should continue to review and accept both proposed adjusting jouranl entries and footnote disclosures, along with the draft financial statements. School District's Response: The District has received, reviewed and approved all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgements based on these financial statements.

View Audit 376564

Finding 1165757 (2025-001)

Material Weakness 2025

Cadillac Area Public Schools

MI

Subrecipient Monitoring Cash Management Reporting

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim used incomplete Z-Reports which resulted in the meal claim being submitted for less than it should have been. Not al...

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim used incomplete Z-Reports which resulted in the meal claim being submitted for less than it should have been. Not all dining locations had their final meal counts completed before the meal claim was submitted. The persons responsible for the corrective action are Aaron Burnett, the Food Service Director and Emily Kearney, the Business Manager. The anticipated completion date of the corrective action plan is immediate. The plan for monitoring adherence is the Food Service Director will ensure that all meal counts are final on the Z-Report before the claim requests are made.

View Audit 376550

Corrective Action Plans

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