Corrective Action Plans

Finding 1214792 (2025-002)

Material Weakness 2025

Hello Neighbor

PA

Internal Control / Segregation of Duties

Management is in the process of hiring a VP of Operations who will take several responsibilities off of the Director of Finance, allowing for better focus over monthly and yearly closing processes.

View Audit 401521

Finding 1214784 (2025-001)

Material Weakness 2025

Near East Foundation

NY

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

CORRECTIVE ACTION PLAN U.S. Department of State Near East Foundation and Subsidiaries (the “Foundation”) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #6...

CORRECTIVE ACTION PLAN U.S. Department of State Near East Foundation and Subsidiaries (the “Foundation”) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: July 1, 2024 – June 30, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2025-001 Books and records Recommendation: Our auditors recommend that we strengthen the financial close process by establishing and maintaining a structured closing timeline, ensuring timely preparation and review of key account reconciliations, and evaluating staffing levels and resources within the finance function to support timely and accurate financial reporting. Action Taken: The Foundation is actively addressing staffing and capacity considerations within the finance department and is implementing enhancements to strengthen the timeliness and efficiency of the close process. These efforts include engaging outsourced resources to assist in completing outstanding reconciliations and stabilizing the overall close cycle. Name(s) of Contact Person(s) Responsible for Corrective Action: John Ashby, CEO, (315) 428-8670. Anticipated Completion Date: May 2026 FINDINGS – FEDERAL AWARD PROGRAM AUDIT None

View Audit 401519

Finding 1214780 (2025-001)

Material Weakness 2025

Sanford

SD

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

As it relates to Research milestone billing for the PASC grant, procedures were revised in 2025 after the 2024 Audit. Upon receipt of invoice and payment from PASC, the Research Billing team will review and provide notification to Research Director and Research Manager via email if the invoice and p...

As it relates to Research milestone billing for the PASC grant, procedures were revised in 2025 after the 2024 Audit. Upon receipt of invoice and payment from PASC, the Research Billing team will review and provide notification to Research Director and Research Manager via email if the invoice and payment received matches to what is shown as owed in our systems. The Corrective Action Plan from the 2024 Audit was already put into place however this is a repeat finding due to the timing of the 2024 finding. Responsible Party: Stephanie Swanson, Director of Insurance Anticipated completion date: Already Complete

View Audit 401518

Finding 1214771 (2025-001)

Material Weakness 2025

Blue Ridge Area Health Education Center, Inc.

GA

Internal Control / Segregation of Duties Cash Management Reporting

2025-01: Segregation of Duties Name of contact person: Caroline Aultman, 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: Caroline Aultman, 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. However, the risk of not segregating certain duties is not worth the additional costs. Nonfinancial employees will be trained and provide some assistance. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 401508

Finding 1214767 (2025-001)

Material Weakness 2025

Northeast Texas Public Health District

TX

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

Management’s Views and Corrective Action Plan: Management’s Views: Management agrees with the finding. While the hours charged to the federal programs were reasonable and supported, the lack of timely supervisory approval represents a breakdown in the District’s established internal control procedur...

Management’s Views and Corrective Action Plan: Management’s Views: Management agrees with the finding. While the hours charged to the federal programs were reasonable and supported, the lack of timely supervisory approval represents a breakdown in the District’s established internal control procedures over payroll processing. Management acknowledges the importance of ensuring that all payroll charges to federal awards are properly reviewed and approved in accordance with District policy and federal requirements. Corrective Action: The District’s Human Resource Department will verify timecard approvals on Mondays. If Monday falls on a holiday, approvals will be verified on the Friday before. Human Resources will verify that each employee has approved his or her timecard for the prior week and that the employee’s Supervisor or Director has also approved the timecard. For timecards not approved by the employee, an email will be sent to the employee and the Supervisor or Director will be included. For timecards not approved by the Supervisor or Director, an email will be sent to the Supervisor or Director requesting approval, and the CEO will be included. Prior policy did not specify actions when timecards are not approved. Responsible Party: The District’s Human Resources Director and Department Directors Implementation Date: June 1, 2026 Monitoring Procedures: The Human Resources Director will maintain documentation of the weekly review process, including any follow-up communications. Compliance with the timecard approval policy will be periodically reviewed to ensure the control is operating effectively. Any recurring issues will be communicated to executive management for further action. Monitoring procedures were not included in prior policy.

View Audit 401492

Finding 1214745 (2025-002)

Material Weakness 2025

Woods Hole, Martha's Vineyard and Nantucket Steamship Authority

MA

Internal Control / Segregation of Duties Significant Deficiency

2025-002: Inadequate Controls Related to Wage Rate Requirements Condition: Of the five contracts included within major program 20.205 in the current year, two were subject to the wage rate requirement. These two contracts accounted for $1.9M of the $4M total program expenditures. In total there were...

2025-002: Inadequate Controls Related to Wage Rate Requirements Condition: Of the five contracts included within major program 20.205 in the current year, two were subject to the wage rate requirement. These two contracts accounted for $1.9M of the $4M total program expenditures. In total there were 13 weeks of payroll included within the two contracts, of which three were selected for testing. The internal control failure occurred due to the timing of the invoices in relation to year end close procedures. Payment was accelerated to capture both the expense and cash outlay within the same fiscal year overlooking the need to confirm the receipt of the certified payrolls. Corrective Action Taken or Planned: Prior to submitting any invoices that are reimbursable with federal funds, the accounting staff will verify in writing that the vendor’s certified payrolls have been received and reviewed. Additionally, a newly created Federally Funded Invoice and Payment Compliance Checklist form has been created. This form will be completed and submitted with the approved invoice for payment. Person Responsible for Corrective Action: Mark Rozum, Treasurer/Comptroller Anticipated Completion Date for Corrective Action: The corrective action has already started and will be fully implemented within 30 days in response to the auditor’s recommendations.

View Audit 401486

Finding 1214723 (2025-001)

Material Weakness 2025

South Coastal Counties Legal Services, Inc. and Affiliate

MA

Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

April 23, 2026 Cognizant or Oversight Agency for Audit South Coastal Counties Legal Services, Inc. and Affiliate respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: AAFCPAs, Inc. 50 Washington Street ...

April 23, 2026 Cognizant or Oversight Agency for Audit South Coastal Counties Legal Services, Inc. and Affiliate respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: AAFCPAs, Inc. 50 Washington Street Westborough, MA 01581 Audit Period: January 1, 2025 - December 31, 2025 The findings from April 22,2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDING - FINANCIAL STATEMENT AUDIT FINDING SIGNIFICANT DEFICIENCY 2024-001 Seperation of Justice Center Recommendation: We recommend management examine their internal processes and policies on how activities for both entities are seperately accounted for to ensure proper separation consistent with LSC requirements. We understand management has submitted a correction action plan and has been working with LSC and has already implemented several recommendations from the review and is expected to finalize and implement any remaining required recommendations in 2026. We further understand that LSC has not demanded a formal deadline for completion of the Program Integrity Review and the Organization is not unreasonably delayed in its implementation of any corrective actions. Action Taken: SCCLS prepared and developed a corrective action plan with LSC and has met with LSC on a bi-weekly basis working with LSC to ensure that compliance with the corective action plan will result in adequate separation between entities under Title 45 of the Code of Federal Regulations. Mulitple aspects of the plan has been implemented, with full compliance expected in 2026. FINDING - FEDERAL AWARD PROGRAM AUDIT SIGNIFICANT DEFICIENCY LEGAL SERVICES CORPORATION 2024-001 Seperation of the Justice Center The significant deficiency relates to the Federal Funds received from Legal Services Corporation (LSC), Basic Field Grant, grant recipient #122087, under assistance listing number 09.112087. Recommendation: We recommend management examine their interal processes and policies on how activies for both entities are separately accounted for to ensure proper separation consistent with LSC requirements. We understand management has submitted a corrective action plan and has been working with LSC and has already implemented several recommendations from the review and is expected to finalize and implement any remaining required recommendations in 2025. We further understand that LSC has not demanded a formal deadline for completion of the Program Integrity Review and the the Organization is not unreasonably delayed in its implementation of any corrective actions. Action Taken: SCCLS prepared and develiped a corrective action plan with LSC and has met with LSC on a bi-weekly basis working with LSC to enure that compliance with the correction action plan with result in adequate separation between entities under Title 45 of the Code of Fedearl Regulations. Multiple aspects of the plan have been implemented, with full compliance expected in 2026. If Legal Services Corporation has questions regarding this plan, please call Christopher Oldi, Executive Director at (774) 488-5950 2023-001 Seperation of the Justice Center The significant deficiency relates to the Federal Funds received from Legal Services Corporation (LSC), Basic Field Grant, grant recipient #122087, under assistance listing number 09.112087. Recommendation: We recommend management examine their interal processes and policies on how activies for both entities are separately accounted for to ensure proper separation consistent with LSC requirements. We understand management has submitted a corrective action plan and has been working with LSC and has already implemented several recommendations from the review and is expected to finalize and implement any remaining required recommendations in 2025. We further understand that LSC has not demanded a formal deadline for completion of the Program Integrity Review and the the Organization is not unreasonably delayed in its implementation of any corrective actions. Action Taken: SCCLS prepared and develiped a corrective action plan with LSC and has met with LSC on a bi-weekly basis working with LSC to enure that compliance with the correction action plan with result in adequate separation between entities under Title 45 of the Code of Fedearl Regulations. Multiple aspects of the plan have been implemented, with full compliance expected in 2026. If Legal Services Corporation has questions regarding this plan, please call Christopher Oldi, Executive Director at (774) 488-5950 Sincerely yours, Christopher Oldi Executive Director

View Audit 401473

Finding 1214722 (2025-001)

Material Weakness 2025

Mayflower School District

AR

Subrecipient Monitoring Internal Control / Segregation of Duties School Nutrition Programs

The District experienced a transition in the Business Manager position in February 2025. Following this personnel change, the District began implementing procedural adjustments to strengthen internal controls and improve segregation of duties. Because all three district office staff members were eit...

The District experienced a transition in the Business Manager position in February 2025. Following this personnel change, the District began implementing procedural adjustments to strengthen internal controls and improve segregation of duties. Because all three district office staff members were either new to their roles or new to the District during this transition, implementation of these changes took additional time while staff became familiar with their responsibilities. With staff now established in their respective positions and gaining experience, the District has reassigned certain duties and implemented additional oversight procedures to better segregate financial responsibilities and strengthen internal controls moving forward.

View Audit 401472

Finding 1214686 (2025-001)

Material Weakness 2025

Proviso Leyden Council for Community Action

IL

Internal Control / Segregation of Duties § 200.302

Year Ended June 30, 2025 Finding Number: 2025-001 Finding Title: Material Weakness in Internal Control over Financial Reporting and Compliance Name of Contact Person: Beverly Smith, COO Corrective Action Plan: The Organization has engaged an external CPA firm subsequent to year-end to assist with re...

Year Ended June 30, 2025 Finding Number: 2025-001 Finding Title: Material Weakness in Internal Control over Financial Reporting and Compliance Name of Contact Person: Beverly Smith, COO Corrective Action Plan: The Organization has engaged an external CPA firm subsequent to year-end to assist with reconciling grant revenue, receivable, and cash accounts and to support improvements in financial reporting processes. Management acknowledges that these corrections occurred after year-end and were not part of the Organization’s internal control process and contributed to delays in the completion of the audit. In addition, the Organization has hired new key accounting personnel to strengthen internal financial reporting capacity and oversight. Going forward, the Organization will implement formal procedures requiring monthly reconciliation of all significant accounts, including cash and grant-related accounts. Responsibilities for preparation and review of reconciliations will be clearly assigned, and all reconciliations will be documented and reviewed by management in a timely manner. In addition, the Organization will implement enhanced controls over cash activity and journal entries, including review procedures designed to identify and prevent duplicate or erroneous entries. Management will also increase oversight of the financial reporting process to ensure that account balances are accurate and supported throughout the year. Anticipated Completion Date: June 30, 2026

View Audit 401413

Finding 1214671 (2025-006)

Material Weakness 2025

Clayton County Board of Commissioners

GA

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

Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. We will work to ensure that future reports are submitted timely and that evidence of submissions is retained for each report filing.

View Audit 401405

Finding 1214645 (2025-001)

Material Weakness 2025

Brompton Community Iii, LLC

TX

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely...

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely submission of the Single Audit reporting package to the FAC. Reporting Views of Responsible Officials Management acknowledges the late submission and has implemented procedures to assign responsibility for FAC submission and track required deadlines. Management believes these actions will prevent recurrence. Auditee concurs with this finding. Auditee agrees with auditor recommendations. Completion Date or Proposed Completion Date: May 31, 2026 by Rebecca Copeland, Controller - Property Accounts Action(s) Taken or Planned on the Finding The electronic submissions will be entered into the online FAC system.

View Audit 401357

Finding 1214644 (2025-001)

Material Weakness 2025

One Oaklake Vii, LLC

TX

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely...

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely submission of the Single Audit reporting package to the FAC. Reporting Views of Responsible Officials Management acknowledges the late submission and has implemented procedures to assign responsibility for FAC submission and track required deadlines. Management believes these actions will prevent recurrence. Auditee concurs with this finding. Auditee agrees with auditor recommendations. Completion Date or Proposed Completion Date: May 31, 2026 by Rebecca Copeland, Controller - Property Accounts Action(s) Taken or Planned on the Finding The electronic submissions will be entered into the online FAC system.

View Audit 401356

Finding 1214643 (2025-001)

Material Weakness 2025

One Oaklake Vi, LLC

TX

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely...

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely submission of the Single Audit reporting package to the FAC. Reporting Views of Responsible Officials Management acknowledges the late submission and has implemented procedures to assign responsibility for FAC submission and track required deadlines. Management believes these actions will prevent recurrence. Auditee concurs with this finding. Auditee agrees with auditor recommendations. Completion Date or Proposed Completion Date: May 31, 2026 by Rebecca Copeland, Controller - Property Accounts Action(s) Taken or Planned on the Finding The electronic submissions will be entered into the online FAC system.

View Audit 401355

Finding 1214642 (2025-001)

Material Weakness 2025

One Oaklake X, LLC

TX

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely...

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely submission of the Single Audit reporting package to the FAC. Reporting Views of Responsible Officials Management acknowledges the late submission and has implemented procedures to assign responsibility for FAC submission and track required deadlines. Management believes these actions will prevent recurrence. Auditee concurs with this finding. Auditee agrees with auditor recommendations. Completion Date or Proposed Completion Date: May 31, 2026 by Rebecca Copeland, Controller - Property Accounts Action(s) Taken or Planned on the Finding The electronic submissions will be entered into the online FAC system.

View Audit 401354

Finding 1214634 (2025-001)

Material Weakness 2025

The Maryland Coalition Against Sexual Assault, Inc.

MD

Cash Management Material Weakness Internal Control / Segregation of Duties

The Organization does not have controls in place related to revenue recognition. Finding summary: The general ledger balance for grants receivable did not reconcile at year end. Planned corrective action: Controls will be put into place to strengthen the Organizations revenue recognition process. Ac...

The Organization does not have controls in place related to revenue recognition. Finding summary: The general ledger balance for grants receivable did not reconcile at year end. Planned corrective action: Controls will be put into place to strengthen the Organizations revenue recognition process. Accounts receivable will be reconciled each month to ensure proper presentation of grant receivable in the financial statements presented to the board each month. Invoices will be dated based upon when the expenses were incurred rather than the date the invoice was submitted to the granting agency. This will generate a more accurate accounts receivable aging report that will show the amount of grant receivable at any point in time. Projected completion date: 5/31/26 Name of contact persons: Nyla Hendrick, Finance & Operations Director

View Audit 401326

Finding 1214630 (2025-002)

Material Weakness 2025

BAGDAD UNIFIED SCHOOL DISTRICT NO. 20

AZ

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency § 200.303

The District will establish a system of internal controls to ensure wage rate requirements are included in construction contracts funded by Federal awards, and certified payroll reports are obtained from contractors to verify compliance with federal prevailing wage requirements.

View Audit 401322

Finding 1214609 (2025-001)

Material Weakness 2025

Catholic Medical Mission Board, Inc.

NY

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Finding 2025-001: Reporting - Other Finding Required to be Reported under Uniform Guidance View of Responsible Officials and Planned Corrective Action: Management concurs with the finding. The Organization acknowledges the oversight in not reporting subawards exceeding $30,000 in the FFATA Subaward ...

Finding 2025-001: Reporting - Other Finding Required to be Reported under Uniform Guidance View of Responsible Officials and Planned Corrective Action: Management concurs with the finding. The Organization acknowledges the oversight in not reporting subawards exceeding $30,000 in the FFATA Subaward Reporting System (FSRS), which was due to a lack of awareness regarding this specific requirement after hand-over transitions to new staff. To address this, the Organization developed formal procedures to ensure full compliance with all FFATA reporting. These include clearly defined responsibilities and training relevant staff and internal reviews to verify ongoing compliance, to ensure timely submission of required reports. The organization is committed to strengthening internal controls to ensure transparency, maintain compliance with federal grant regulations, and prevent recurrence of this issue. Name of contact person: Name: Michael Woliver Title: Senior Director, Compliance & Operations Contact: MWoliver@cmmb.org Proposed Completion Date : September 30, 2025, and ongoing

View Audit 401280

Finding 1214599 (2025-002)

Material Weakness 2025

City of Scott City, Missouri

MO

Allowable Costs / Cost Principles Material Weakness Reporting

Material Weakness: As identified in finding 2025-001, the City’s reconciliation of bank balances continues to contain unreconciled differences and unrecorded transactions. This has continued to be a material weakness regarding internal control over financial reporting for a number of years with the ...

Material Weakness: As identified in finding 2025-001, the City’s reconciliation of bank balances continues to contain unreconciled differences and unrecorded transactions. This has continued to be a material weakness regarding internal control over financial reporting for a number of years with the City not taking effective corrective actions to resolve the issues. Although the City’s classification and reporting of allowable costs with respects to the Federal grants tested continues to be reasonable and in compliance with grant terms, without proper control over reconciliation procedures, the control over allowable costs and the reporting of allowable costs could be compromised. The City must continue to improve their bank reconciliation procedures.

View Audit 401268

Finding 1214593 (2025-001)

Material Weakness 2025

Department of Transportation and Public Works

PR

Internal Control / Segregation of Duties Eligibility Material Weakness § 200.303

Corrective Action: The Finance Director, in coordination with Human Resources, will execute a "Mobility File Standardization Plan." A census of transferred personnel will be conducted to identify missing documents (I-9 forms, tax withholdings, academic certifications, and background checks). A 90-da...

Corrective Action: The Finance Director, in coordination with Human Resources, will execute a "Mobility File Standardization Plan." A census of transferred personnel will be conducted to identify missing documents (I-9 forms, tax withholdings, academic certifications, and background checks). A 90-day term is established to complete the physical and digital archives.

View Audit 401254

Finding 1214578 (2025-001)

Material Weakness 2025

Metzger Park Apartments Inc.

OR

HUD Housing Programs Internal Control / Segregation of Duties

Finding # 2025-001 Type: Noncompliance Assisting Listing Number: 14.186 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Name of Federal Program: Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA) Corrective Action: Management will update the monthly repla...

Finding # 2025-001 Type: Noncompliance Assisting Listing Number: 14.186 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Name of Federal Program: Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA) Corrective Action: Management will update the monthly replacement reserve deposit to $2,367 in accordance with the HUD Regulatory Agreement and make the remaining catch‑up deposit of $2,249 as soon as feasible. Anticipated Completion Date: June 30, 2026

View Audit 401241

Finding 1214571 (2025-001)

Material Weakness 2025

Jackson Housing Authority

TN

HUD Housing Programs Internal Control / Segregation of Duties

To assure program compliance with Housing Quality Standards (HQS), the Jackson Housing Authority's (JHA) Housing Choice Voucher (HCV) program will conduct a comprehensive review of all units to identify any that are overdue for HQS inspections. This will be done by utilizing the adhoc report in HUD'...

To assure program compliance with Housing Quality Standards (HQS), the Jackson Housing Authority's (JHA) Housing Choice Voucher (HCV) program will conduct a comprehensive review of all units to identify any that are overdue for HQS inspections. This will be done by utilizing the adhoc report in HUD's PIC Secure Systems, along with the Past Due Inspections report in Emphasys Elite, JHA's current software. Any past due inspections will be scheduled and completed within 30 days. Fourteen of the fifteen inspections that were cited in the 2025 financial audit, all now have a passed inspection for the 2025 fiscal year. The one remaining inspection has been sent to JHA's third party inspection company, McCright and Associates, and has been imported and will be scheduled for inspection before current month's end. JHA currently has one staff member who is HQS certified and will work closely with the Director or Rental Assistance, as well as with McCright and Associates, to monitor and track the inspection processes, via daily correspondence and tracking log sent from McCright and Associates. We will also work with Emphasys Elite (software provider) to assure that automated reminders are in place to give 60-90 days' notice of upcoming inspection deadlines. Monthly internal reviews will be conducted to verify that all units follow HQS inspection schedules and rent abatements will be enforced according to federal regulations. The Director of Rental Assistnce, Sheronda Watson, remains responsible for program oversight and compliance. If you have questions or need anything further, please feel free to contact me at 731-422-1671 ext.103 or mreid@jacksonha.com.

View Audit 401231

Finding 1214480 (2025-002)

Material Weakness 2025

Lodge Grass School District No. 27 & 2

MT

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

Finding 2025-002 – Reporting (Internal Controls Over Compliance) Impact Aid Applications Significant Deficiency Condition: We did not receive back up documentation to support the Children with Disabilities figures on both the Elementary and High School Impact Aid applications. Questioned Costs: None...

Finding 2025-002 – Reporting (Internal Controls Over Compliance) Impact Aid Applications Significant Deficiency Condition: We did not receive back up documentation to support the Children with Disabilities figures on both the Elementary and High School Impact Aid applications. Questioned Costs: None. Criteria: Uniform Guidance, 2 CFR section 200.303 (Internal Controls), effective internal controls require the entity to establish and implement written policies and procedures. These policies must ensure that disbursements are supported by adequate documentation, demonstrating proper authorization, accuracy, and compliance with applicable laws and regulations. Cause: Lack of retention of documents used to support the figures that were presented in the Elementary and High School Impact Aid applications. Although the review and approval of the Impact Aid applications was noted as being performed, the lack of retention of supporting documentation relating to the applications does not support reperformance. Effect: The School District was not in compliance with Uniform Guidance, which could lead to sanctions by the funding agencies. Recommendation: We recommend the entity strengthen internal controls over the review of the impact aid application and the retention of documents used to complete the Impact Aid applications. Views of Responsible Officials: We concur that data submitted by previous school administration was not verifiable. The District has since taken steps to ensure that all CWD student data is submitted to Impact Aid timely and accurately and date used from the Special Ed Dept at the school via reports submitted to the Office of Public Instruction.

View Audit 401189

Finding 1214468 (2025-003)

Material Weakness 2025

Meals on Wheels of Middle Georgia, Inc.

GA

Reporting Procurement, Suspension & Debarment Subrecipient Monitoring § 200.502 § 200.510

March 31, 2026 To: Clausell & Associates, P.C. From: Javonna Latimore, Executive Director of Meals on Wheels of Middle Georgia, Inc. COMMENT#2025-001 CONTROLS OVER FINANCIAL STATEMENT PREPARATION SHOULD BE IMPROVED Views of Responsible Officials and Planned Corrective Actions: We concur with this fi...

March 31, 2026 To: Clausell & Associates, P.C. From: Javonna Latimore, Executive Director of Meals on Wheels of Middle Georgia, Inc. COMMENT#2025-001 CONTROLS OVER FINANCIAL STATEMENT PREPARATION SHOULD BE IMPROVED Views of Responsible Officials and Planned Corrective Actions: We concur with this finding. The Organization has contracted with a seasoned outside accounting professional to assure that the financial system is designed to properly report financial activity by funding source and statements are completed and prepared timely. In addition, the Organization has committed to upgrading our accounting system software along with appropriate amendments to the formal accounting policy and procedures manual to cover the proper internal controls for accurately reporting financial activities (expenses) for each grant and making sure that the allocation of expenses is supported by a methodology governed by generally accepted accounting principles. The Organization will maintain a backup copy of all financial data on-site. The accounting process and the software backup process will be completed by July 31, 2026. The Organization is also engaged to have training on common software applications and cybersecurity awareness. Date to be implemented: On-going and completed by July 31, 2026. Persons responsible: Javonna Latimore, CEO, and financial consultant COMMENT#2025-002 POLICIES AND PROCEDURES AND INTERNAL CONTROLS OVER DISBURSEMENTS SHOULD BE IMPROVED Views of Responsible Officials and Planned Corrective Actions: We concur with this finding. The Organization will immediately assign a committee to take the lead in establishing policies and procedures and internal controls over the procurement process. The Organization has engaged a third party to help establish values of in-kind contributions. Date to be implemented: On-going and completed by July 31, 2026. Persons responsible: Javonna Latimore, CEO (contact person) under the direction of the board of directors with the outside consultant. COMMENT#2025-003 INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED. Coronavirus State and Local Fiscal Recovery Funds, Aging Cluster, and Social Services Block Grant-Home Delivered Meals and Community Development Block Grant FALN 14.218, 21.027, 93.045, 93.053 and 93.667 GENERAL Views of Responsible Officials and Planned Corrective Actions: See Comment 2025-001 and 002. Date to be implemented: See Comment 2025-001 and 002. Persons responsible: See Comment 2025-001 and 002.

View Audit 401175

Finding 1214451 (2025-001)

Material Weakness 2025

Mi Residential Community, Inc. 023-11147

MA

Internal Control / Segregation of Duties

All initial data entries will be completed by the designated staff member. A second qualified staff member will systematically review the utility allowance data for accuracy prior to submission. Both staff members will sign off on the utility allowance report to certify its accuracy.

View Audit 401146

Finding 1214441 (2025-002)

Material Weakness 2025

Michigan Rural Water Association

MI

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Finding – Title 2 CFR Part 200 and the terms of the federal award require recipients to comply with program reporting requirements, including the timely submission of required financial reports. Timely reporting is a key internal control over compliance designed to ensure appropriate monitoring of f...

Finding – Title 2 CFR Part 200 and the terms of the federal award require recipients to comply with program reporting requirements, including the timely submission of required financial reports. Timely reporting is a key internal control over compliance designed to ensure appropriate monitoring of federal expenditures and program activity. Under the Technical Assistance and Training Grants - Circuit Rider Services program, the National Rural Water Association requires recipients to submit monthly financial reports no later than 10 working days after the month following the reported activity. For the period January through May 2025, all required monthly financial reports were submitted timely. However, for the period June through December 2025, all monthly financial reports were submitted after the required deadline, in some cases significantly late. Recommendation – The auditor recommends that management strengthen internal control over compliance by: • Establishing documented procedures and internal deadlines to ensure monthly financial reports are prepared and submitted in accordance with program requirements. • Implementing management-level review and monitoring controls to verify that required reports are submitted timely, particularly during periods of staff transition. • Ensuring that personnel responsible for federal reporting possess the appropriate experience and training related to federal grant compliance requirements. • Developing contingency plans or cross-training procedures to ensure continuity of compliance functions in the event of future personnel turnover. Action to be taken – Documented policies and procedures were left for the succeeding financial manager. The Finance Director who left the Organization was also available as a consultant during the rest of 2025. Help was made available to the new financial personnel through both executive management and the consultant. More in-depth training and screening will be prepared in succession planning by the current Finance Director during the summer of 2026. Emphasis will be given to timeliness and accuracy. New programs are also being screened for payroll and expense reporting, allowing for direct import as opposed to manual entry, allowing for better accuracy and timing of financial reports. The new Standard Operating Procedures will be shared with Executive management so they might step in in the event that there is a gap in the financial management position. Executive management is also evaluating the use of an independent accounting firm in the event of a vacancy in the future. Estimated completion date – December 31, 2026 Responsible person – Jennifer Lewis, CPA, Finance Director

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