Corrective Action Plans

Finding 1181514 (2025-004)

Material Weakness 2025

Texas College

TX

Student Financial Aid Internal Control / Segregation of Duties

Finding 2025-004- U.S. Department of Education (USDE, Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2025; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental Ed...

Finding 2025-004- U.S. Department of Education (USDE, Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2025; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2025; Federal Work-Study Program, FAL No. 84.033, June 30, 2025. Failure to Provide Student-Level Documentation to Support FISAP Reporting (significant deficiency) Condition - The College did not provide the requested student-level records (ISIRs) to substantiate the number of eligible applicants reported on the FISAP submitted to the U.S. Department of Education. As a result, we were unable to verify the accuracy and completeness of the eligible applicant data reported for the applicable award year. Views of Responsible Officials - The College accepts the recommendation. The institution acknowledges that this request was initially overlooked during the audit review. The requested sample testing of ISIRs has now been completed, and a total of 34 ISIR records have been provided and uploaded to the shared file for the auditor’s review. The institution respectfully requests a formal update to this finding (if applicable), once all submitted ISIR documents have been reviewed and deemed acceptable by the auditor Responsible Officials - The Financial Aid Office under the direction of the Vice President of Student Affairs plans (to have the finding resolved by its next fiscal year end audit (between July – October 2026). The College is aware of the need to review and mitigate compliance risks in this area and will use the described corrective action plan to reduce those risks and eliminate the potential for future audit findings.

View Audit 392737

Finding 1181510 (2025-003)

Material Weakness 2025

Texas College

TX

Student Financial Aid Internal Control / Segregation of Duties

Finding 2025-003 - U.S. Department of Education (USDE, Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2025; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental E...

Finding 2025-003 - U.S. Department of Education (USDE, Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2025; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2025; Federal Work-Study Program, FAL No. 84.033, June 30, 2025. Condition – During testing of student account activity, we identified that nine (9) out of sixty (60) sampled students had Title IV -created credit balances that remained on their accounts for more than 14 days without being released to the student or parent. Views of Responsible Officials - The College accepts the recommendation. The institution has reviewed the audit finding and acknowledges that student refunds were not consistently issued within the required 14-day timeframe due to students’ incomplete admissions requirements. The institution recognizes this as a compliance deficiency and has implemented revised processes and internal controls to ensure timely and compliant issuance of student refunds going forward. Effective immediately, the Registrar’s Office provides a weekly roster of students with incomplete admission requirements to the Financial Aid Office and the Business Office prior to the release of federal student aid. These offices meet weekly to review the roster, ensure timely communication, and document all actions taken. This control ensures that federal student aid is not disbursed when admissions requirements have not been met and prevents the creation of improper student credit balances. Under the revised refund process, the Business Office staff identify student credit balances and prepare refund requests. These requests are reviewed by the Registrar’s Office to reconfirm when admission requirements have been met and by the Financial Aid Office to confirm that federal student aid has been properly originated and disbursed through the Common Origination and Disbursement (COD) system. If it is determined that a student’s admissions requirements are incomplete and a refund has been created, the Business Office notifies the Financial Aid Office to cancel all applicable federal student aid and return the funds to the U.S. Department of Education through COD. When a student’s admissions requirements have been met, then the Business Office completes the refund process by transmitting the approved refund file to the institution’s third-party refund vendor and submitting funds for release to students. These revised procedures strengthen oversight, improve interdepartmental coordination, and ensure compliance with federal refund timelines. College administrators for each department (Vice President for Student Affairs and Vice President for Business and Finance) will be responsible for informing staff of changes in campus operations that may have an impact on their ability to process refunds. Responsible Officials - The Registrar, the Financial Aid Office under the direction of the Vice President of Student Affairs, and Business Office under the direction of the Vice President for Business and Finance plan to have the finding resolved by its next fiscal year end audit (between July – October 2026). The College is aware of the need to review and mitigate compliance risks in this area and will use the described corrective action plan to reduce those risks and eliminate the potential for future audit findings.

View Audit 392737

Finding 1181506 (2025-002)

Material Weakness 2025

Texas College

TX

Student Financial Aid Internal Control / Segregation of Duties

Finding 2025-002 - U.S. Department of Education (USDE, Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2025; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental E...

Finding 2025-002 - U.S. Department of Education (USDE, Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2025; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2025; Federal Work-Study Program, FAL No. 84.033, June 30, 2025. Condition - Based on documentation provided for the 2024–2025 award year, the College disbursed Title IV funds to a student whose ISIR contained Comment Code 325, indicating that the student’s unaccompanied homeless youth status required resolution prior to awarding and disbursing aid. The College did not provide documentation from an authorized entity, nor evidence of a documented Financial Aid Administrator case-by-case determination, to support the student’s independent status. As a result, the student’s dependency status remained unresolved at the time Title IV funds were disbursed. Views of Responsible Officials – The College accepts the recommendation Although a recommendation was noted, the Financial Aid Management System (FAMS) was not programmed as expected for the 2024– 2025 FAFSA application year. The issue was anticipated to be addressed by the third-party vendor through system updates; however, because of the programming oversight, no system flag was generated to request self-supporting documentation or validation of a student’s homelessness or risk of homelessness. In addition, the Department of Education’s FAFSA application did not generate a comment code requiring further action on the student’s record. The Institution has since worked with its third-party vendor to correct the programming oversight to ensure that required documentation is requested for students who indicate homelessness or risk of homelessness. Additionally, at the direction of the FAMS vendor, the Financial Aid Office implemented an internal edit to ensure a system flag alerts staff when documentation is required to resolve such cases. With these corrections, the conditions that caused the error have been addressed. Responsible Officials -The Financial Aid Office under the direction of the Vice President of Student Affairs plans to have the finding resolved by its next fiscal year end audit (between July – October 2026).To ensure ongoing compliance, the Financial Aid Office will monitor student records for appropriate flags and required documentation. The College is aware of the need to review and mitigate compliance risks in this area and will use the described corrective action plan to reduce those risks and eliminate the potential for future audit findings.

View Audit 392737

Finding 1181494 (2025-001)

Material Weakness 2025

North Harrison Community School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties Eligibility § 200.303

Date: February 9, 2026 FINDING 2025-001 Finding Subject: Child Nutrition Cluster-Eligibility Contact Person Responsible for Corrective Action: Paula Powers, Food Service Coordinator Contact Phone Number and Email Address: 812-347-3905 ppowers@nhcs.k12.in.us Views or Responsible Official: We concur w...

Date: February 9, 2026 FINDING 2025-001 Finding Subject: Child Nutrition Cluster-Eligibility Contact Person Responsible for Corrective Action: Paula Powers, Food Service Coordinator Contact Phone Number and Email Address: 812-347-3905 ppowers@nhcs.k12.in.us Views or Responsible Official: We concur with the findings. Description of Corrective Action Plan: With future processing of Direct Certification downloads, the Food Authority will generate and IT department will input Direct Certification to software System (Harmony). A second person will review the approval process to ensure Direct Certification input was downloaded correctly. After reviewing, second person will sign the Direct Certification download list in order to maintain proper checks and balances. Anticipated Completion Date: August 2026

View Audit 392733

Finding 1181490 (2025-001)

Material Weakness 2025

Centennial Homes, Inc.

MD

Internal Control / Segregation of Duties Reporting

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the re...

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the required deposit in full prior to issuance of the audited financial statements. B. Actions Taken or Planned To address the matter and prevent similar exceptions in the future, management has taken the following corrective actions: 1. Reviewed the reserve deposit requirements and confirmed the required transfer amount and timing. 2. Updated the recurring transfer configuration within the new accounting software. 3. Implemented a monthly verification control to confirm that required replacement reserve deposits are processed timely and accurately. 4. Assigned management oversight responsibility for review of monthly reserve funding activity. C. Status of Corrective Action on Prior Findings No prior findings noted. Responsible Party: Managing Agent Planned Completion Date: Corrective action was completed prior to issuance of the audited financial statements, with ongoing monthly monitoring thereafter.

View Audit 392726

Finding 1181489 (2025-001)

Material Weakness 2025

Montgomery Housing, Inc.

MD

Internal Control / Segregation of Duties Reporting

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the re...

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the required deposit in full prior to issuance of the audited financial statements. B. Actions Taken or Planned To address the matter and prevent similar exceptions in the future, management has taken the following corrective actions: 1. Reviewed the reserve deposit requirements and confirmed the required transfer amount and timing. 2. Updated the recurring transfer configuration within the new accounting software. 3. Implemented a monthly verification control to confirm that required replacement reserve deposits are processed timely and accurately. 4. Assigned management oversight responsibility for review of monthly reserve funding activity. C. Status of Corrective Action on Prior Findings No prior findings noted. Responsible Party: Managing Agent Planned Completion Date: Corrective action was completed prior to issuance of the audited financial statements, with ongoing monthly monitoring thereafter.

View Audit 392725

Finding 1181488 (2025-001)

Material Weakness 2025

Next Step Housing, Inc.

MD

Internal Control / Segregation of Duties Reporting

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the re...

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the required deposit in full prior to issuance of the audited financial statements. B. Actions Taken or Planned To address the matter and prevent similar exceptions in the future, management has taken the following corrective actions: 1. Reviewed the reserve deposit requirements and confirmed the required transfer amount and timing. 2. Updated the recurring transfer configuration within the new accounting software. 3. Implemented a monthly verification control to confirm that required replacement reserve deposits are processed timely and accurately. 4. Assigned management oversight responsibility for review of monthly reserve funding activity. C. Status of Corrective Action on Prior Findings No prior findings noted. Responsible Party: Managing Agent Planned Completion Date: Corrective action was completed prior to issuance of the audited financial statements, with ongoing monthly monitoring thereafter.

View Audit 392724

Finding 1181439 (2025-002)

Material Weakness 2025

Carteret County, North Carolina

NC

Eligibility Internal Control / Segregation of Duties

Training with all Medicaid Income Maintenance Caseworkers was conducted on January 28 and 29, 2026, to address the deficiencies noted above. All seasoned Medicaid workers have a minimum of two cases reviewed through a second-party process each month. Any errors found are addressed with the caseworke...

Training with all Medicaid Income Maintenance Caseworkers was conducted on January 28 and 29, 2026, to address the deficiencies noted above. All seasoned Medicaid workers have a minimum of two cases reviewed through a second-party process each month. Any errors found are addressed with the caseworkers individually and are used for training during monthly unit meetings held with all of our Medicaid caseworkers. Currently, Carteret County has 9 unseasoned workers who are being 100% second partied.

View Audit 392701

Finding 1181428 (2025-002)

Material Weakness 2025

Northeastern Wayne School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties § 200.303

Subject: Child Nutrition Cluster (CNC) – Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Numbers and Years (Or Other Identifying Numbers): FY23-FY24, FY24-FY25...

Subject: Child Nutrition Cluster (CNC) – Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Numbers and Years (Or Other Identifying Numbers): FY23-FY24, FY24-FY25 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Eligibility Audit Findings: Material Weakness Condition : An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Eligibility compliance requirements. Context : During testing of internal controls over eligibility requirements, we noted there is no formal, documented review of the eligibility income guidelines entered into the food service software to ensure that system parameters were in agreement with USDA guidelines on an annual basis. For the 2023-2024 school year, the income eligibility guidelines were not updated timely by the School Corporation. During compliance testing of eligibility, we noted 3 instances isolated to 2023-2024, in a sample of 60 students, in which the eligibility status was incorrectly determined. In two instances, the eligibility status was changed from Reduced to Free upon updating the eligibility income guidelines. In one stance, the status changed from Pay to Reduced. The lack of internal controls over the review of the eligibility income guidelines impacted both years under audit. The noncompliance with eligibility determinations was isolated to fiscal year 2024. Views of Responsible Official : We concur with the finding. Description of Corrective Action Plan : The Student Management Specialist will print the thresholds and enter the eligibility income guidelines into the food service management software, Harmony. The Superintendent will verify that the data has been entered correctly. Responsible Party and Timeline for Completion : This has already been implemented.

View Audit 392694

Finding 1181420 (2025-001)

Material Weakness 2025

Vermont Program for Quality in Health Care

VT

Significant Deficiency Internal Control / Segregation of Duties § 200.303 § 200.508

The Organization acknowledges and concurs with the auditor’s finding as discussed within the Schedule of Findings and Questioned Costs for the year-ended June 30, 2025. The Organization has taken steps in the year ending June 30, 2025 to strengthen internal control by engaging appropriate personnel ...

The Organization acknowledges and concurs with the auditor’s finding as discussed within the Schedule of Findings and Questioned Costs for the year-ended June 30, 2025. The Organization has taken steps in the year ending June 30, 2025 to strengthen internal control by engaging appropriate personnel along with an outside bookkeeping firm to ensure consistency and continuity of practices. In addition, during the year ending June 30, 2025, the Organization has implemented a new electronic timesheet with embedded management review and approval and automated vendor invoice approval process.During the FY25 Audit, it was found that samples of the approval of time sheets from our electronic system were found without the requisite approvals (checkmarks). We believe that this is the result of lack of awareness on our part (Employees and Supervisors) that time sheets must be saved after clicking the approval check box to ensure that the approval is recorded.VPQHC has implemented a corrective action plan that requires an Approval Status Report after each pay period to ensure that all-time sheets are approved by both the employee and supervisor. VPQHC will will conduct training for new employees during their on-boarding on how to enter time using the Asure Time & Attendance System along with periodic refresher training for employees as necessary.

View Audit 392685

Finding 1181417 (2025-003)

Material Weakness 2025

Southwest School Corporation

IN

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

Information on the federal program: Subject: COVID-19 - Education Stabilization Fund, Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Programs: Elementary and Secondary School Emergency Relief Fund (ESSER III) Assistance Listings Nu...

Information on the federal program: Subject: COVID-19 - Education Stabilization Fund, Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Programs: Elementary and Secondary School Emergency Relief Fund (ESSER III) Assistance Listings Number: 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirements: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Audit Finding: Material Weakness, Internal Control Condition: The School Corporation did not have internal controls in place to ensure compliance with the activities allowed or unallowed and allowable cost/cost principles requirements. The School Corporation had not designed or implemented adequate policies or procedures to ensure that stipend and wage rates were properly reviewed and approved. Context: For the testing of activities allowed and unallowed costs-cost principles, 12 vendor disbursements and 40 payroll disbursements were selected for testing. The following deficiencies were noted related to controls over pay rate approvals: • For 10 of 10 stipends sampled, the School Corporation could not provide proper approval of the stipend amount. The total of amount of stipends sampled was $5,056. The total amount of stipends charged to the grant for the audit period was $57,558. • One employee was underpaid by $9, and the error was not caught during the review process. • For two of seven hourly employees sampled, the School Corporation provided a pay chart. However, approval of the rates was not available. • One teacher received twice their regular paycheck amount due to a contract pay off. The School Corporation could not provide approval or additional support related to the contract payoff amount of $1,528. Views of Responsible Officials: Management agrees with the finding and has prepared a corrective action plan. Description of Corrective Action Plan: Management will retain documentation and approval for stipend and hourly pay rates. Management will review all pay runs and ensure the accurate amount of pay is disbursed and retain documentation for any changes in pay amounts. Responsible Party and Timeline for Completion: The Treasurer will be responsible for implementing the corrective action plan, which will go into effect immediately.

View Audit 392681

Finding 1181412 (2025-002)

Material Weakness 2025

Commonwealth Cahtolic Charities

VA

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Action Plan: CCC implemented its corrective action plan immediately upon communication of the original FY24 finding in January 2025. As noted in the status of prior year finding 2024-02, new participants after January 2025 have evidential review of eligibility by a program manager or director and in...

Action Plan: CCC implemented its corrective action plan immediately upon communication of the original FY24 finding in January 2025. As noted in the status of prior year finding 2024-02, new participants after January 2025 have evidential review of eligibility by a program manager or director and internal controls are operating effectively after implementation of the corrective action plan.

View Audit 392669

Finding 1181403 (2025-002)

Material Weakness 2025

Sibley-Ocheyedan Community School District

IA

Internal Control / Segregation of Duties Reporting

The District understands the nature of the weakness and the necessity of oversight and review procedures. The District will review its procedures and continue to implement changes.

View Audit 392654

Finding 1181398 (2025-003)

Material Weakness 2025

Portage Township Schools

IN

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.313

PTS will update the capital asset listing to include all of the required information, including the source of funding the property. The Assistant Director of Finance will prepare the listing annually, and the CFO will review for completeness and accuracy before finalizing the list.

View Audit 392640

Finding 1181397 (2025-002)

Material Weakness 2025

Portage Township Schools

IN

Internal Control / Segregation of Duties Subrecipient Monitoring

The Director of Grants and Assessments will work with the Data Department to refine the process to maintain mobility documentation to ensure appropriate documentation is received and retained for the removal of any students from the cohort.

View Audit 392640

Finding 1181394 (2025-001)

Material Weakness 2025

Portage Township Schools

IN

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

Provider/Employee will submit payroll records/invoices by student services monthly/bi-monthly to the bookkeeper. Once payroll records or invoices are received, the CFO will prepare a spreadsheet that calculates the time/amounts serviced by the non-public school and member school. Once the total hour...

Provider/Employee will submit payroll records/invoices by student services monthly/bi-monthly to the bookkeeper. Once payroll records or invoices are received, the CFO will prepare a spreadsheet that calculates the time/amounts serviced by the non-public school and member school. Once the total hours are calculated, a percentage based on total hours worked for each member school will be used to allocate the provider/employee time for each member school. This documentation will be attached to each reimbursement request.

View Audit 392640

Finding 1181376 (2025-001)

Material Weakness 2025

Mohave Valley Elementary School District No.16

AZ

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

2025-001 Eligibility Over Title I Program: Title I - Grants to Local Educational Agencies Federal Assistance Listing Number: 84.010 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 25FT1TTI-511375-01A Questioned Costs: $-0- Type of Fin...

2025-001 Eligibility Over Title I Program: Title I - Grants to Local Educational Agencies Federal Assistance Listing Number: 84.010 Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Grantor Number: 25FT1TTI-511375-01A Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: E. Eligibility Condition/Context: During our testing of school eligibility and funding, we discovered the District did not maintain records that agreed to the low-income student counts as reported to the Arizona Department of Education to properly allocate Title I funding by poverty level. Corrective Action: The District will ensure in future periods that records are maintained to support lowincome students and the allocation of Title I funding as reported to the Arizona Department of Education. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Jenette King, Business Manager

View Audit 392621

Finding 1181371 (2025-001)

Material Weakness 2025

Recovery Services of Northwest Ohio

OH

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

Recovery Services of Northwest Ohio, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 1, 2024-June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently w...

Recovery Services of Northwest Ohio, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 1, 2024-June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. 2025-001 Type of Finding: Significant deficiency identified: The organization is charging payroll costs to grants based on budgeted amounts rather than costs supported by time and effort documentation. Recommendation: Implementation of either a timekeeping system where timecards include documentation of time allocated to each grant or the implementation of a time study process with the lookback procedures to meet the time and effort documentation requirements in accordance with the Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The organization will implement time and effort documentation/time study for federal awards and charge grant staff costs based on such documentation. Name(s) of the contact person(s) responsible for corrective action: Jean Groves, CFO, Recovery Services of Northwest Ohio, Inc. 419-782-9920. Planned completion date for corrective action plan: March 15, 2026.

View Audit 392613

Finding 1181370 (2025-002)

Material Weakness 2025

Municiapilty of Isabela

PR

Reporting Internal Control / Segregation of Duties Special Tests & Provisions

Cognizant or Oversight Agency for Audit: The Autonomous Municipality of Isabela respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Gonzalez. Torres & Co., PSC, San Jose Tower 1250 Ponce de Leon Ave. Suit...

Cognizant or Oversight Agency for Audit: The Autonomous Municipality of Isabela respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Gonzalez. Torres & Co., PSC, San Jose Tower 1250 Ponce de Leon Ave. Suite 801, San Juan, PR 00907-3912 Audit Period: June 30, 2025 The findings form the June 30, 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 Finding 2025-001: Accounting Records and Reporting System Reportable Condition: See Statement of Condition 2025-001 Recommendation: The Municipality of Isabela should establish procedures and controls to review and modify its current accounting and financial reporting structure in order to obtain reliable financial information on a timely basis. Adjustments and analysis of accounts should be improved to obtain financial statements on time for the decision-making process. The Municipality should establish internal control and procedures in order to maintain an accounting system that contains information pertaining to bank reconciliation and accounts receivables, and related allowances. The Finance Director will delegate the responsibility to perform the monthly bank reconciliations and receivables reports to an employee of the Municipality of Isabela under its supervision. The reconciliation should be signed by the employee of officer and must be checked and signed by the finance director. All differences must be investigated, and the accounts reconciliation must be reconciled to the general ledger. The Centro Isabelino de Medicina Avanzada must strengthen its accounting records for proper follow up and accounting of its receivable’s balances. Corrective Action – Finding 2025-01 During the Fiscal year 2023-2024 and 2024 2025 the Municipality acquired a new accounting system. At this moment, the Finance Department is still working on the implementation of this new accounting system. We expect that when the implementation is completed, it will help the Finance Department to account, in a timely manner, all the financial transactions if the Municipality and to reconcile all the bank accounts in the accounting system. Also, to mitigate this issue, we engaged, annually, with an external consultant to prepare bank reconciliations of the Municipality However, those differences were investigated and record as of June 30, 2025 and also established in the financial statement and in the bank reconciliation as well. In relation to the Centro Isabelino de Medicina Avanzada (CIMA), they’re also implementing a new accounting system. The Municipality will monitor their preparation of bank reconcilations and accounts receivable aging FINDINGS – FEDERAL AWARD Finding 2025-002: Reporting Reportable Condition: See Statement of Condition 2025-002 Recommendation: Due diligence of the supervisory personnel to ensure that reports are submitted on its due date. Corrective Action-Finding 2025-02 The necessary instructions were given to the program staff in order to comply with the reporting requirements established by the federal grant. If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please contact us at (787) 872-2100 extension 2301.

View Audit 392609

Finding 1181359 (2025-001)

Material Weakness 2025

Decorah Community School District

IA

Internal Control / Segregation of Duties

Management is cognizant of this limitation and will implement additional procedures where possible.

View Audit 392588

Finding 1181353 (2025-001)

Material Weakness 2025

The Housing Authority of the City of Warner Robins

GA

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

The Authority will attain weekly certified payrolls from contractors as applicable for all federally funded contracts subject to the Davis-Bacon Act. The Authority’s Executive Director, Africa Porter, has assumed the responsibility of executing this corrective action as of April 1, 2026.

View Audit 392581

Finding 1181349 (2025-001)

Material Weakness 2025

Lenoir County, North Carolina

NC

Eligibility Internal Control / Segregation of Duties

Name of contact Person: Brittany Naylor, Director of Social Services CorrectiveAction:Thisfinding continues to be cited asanongoingeligibilitydeterminationerrorfrom prioraudits, despite exhaustive efforts to resolve the issue. Lenoir County has worked diligently to address the backlog of exparte rev...

Name of contact Person: Brittany Naylor, Director of Social Services CorrectiveAction:Thisfinding continues to be cited asanongoingeligibilitydeterminationerrorfrom prioraudits, despite exhaustive efforts to resolve the issue. Lenoir County has worked diligently to address the backlog of exparte reviewsand bring all reporting upto date.Based onall availablereports accessibleto ouragency,wehave completedthiseffortand arecurrentonallexpartereviews.Toensureaccuracy,Lenoir Countycontacted theState to confirm whether any additional reports or cases existed that were not reflected in our records. Based on the information provided, there are no outstanding reports listed beyond June 2019. Lenoir County has submitted an additional ticket to determine why these older exparte cases continue to appear as active in the system and to request assistance in resolving this issue. We remain committed to collaborating with the State to identify and address any outstanding exparte reviews that may not be reflected in our current reports. Thisfindingalsodisclosedfourapplicantsand,/orbeneficiariesreceivingassistanceforwhichtherecipientwasnot eligible. This finding consisted of the failure of worker to check all case references to determine eligibility. Lenoir County failed to check and include all financial income on two cases and failed to complete an income budget calculation correctly on one case. The following steps will be added to existing practices to ensure ongoing eligibility compliance. Staff meeting will be held Wednesday, February 18,2026 and the following training materials will be discussed and provided to the Medicaid staff to ensure continued understanding and knowledge of program requirements. MAGI policy manual 3306 - Modified Adjusted Gross Income - will be reviewed and additional guidance provided on how to effectively calculate income correctly to determine eligibility for case actions. Verbally explain and provide MAGI Budgeting: 5% Income Disregard PowerPoint and ensure that staff understand how to apply the deduction correctly to case actions. Verbally explain and provide Reasonable Compatibility PowerPoint and ensure that staff understand when and how to apply reasonable compatibility to case per policy requirements. Providing staff with copies of the Single County Audit findings, the Corrective Action plan and staff expectations to ensure that staff is well informed of the findings and what is expected from the Corrective Action Plan implementation. Staff will be required to complete adding machine calculations and check amounts against NC FAST system calculations to verify correct financial income for case actions. A summary check-off form has been created to ensure that staff are checking NC FAST determinations page to cross reference system eligibility approvals are inline with client case actions. Workers must check household size and compare case composition to ensure correct eligibility results. Supervisor and/or Lead Worker will complete 100% 2nd party reviews on all new hires until each worker receives a 95% or higher accuracy processing rating and will complete a minimum of 5 2nd party reviews for each existing worker to target these key areas of concern until all workers reach and maintain a 95% or higher accuracy processing rating. Staff will correct any findings within three days of receipt of 2nd party review findings. Supervisors and Lead Workers will continue to monitor case actions and provide monthly statistical data detailing case findings. The Supervisor and Lead Worker will provide a list of findings and maintain scheduled monthly meetings with staff to provide feedback and coaching to ensure continued compliance of program requirements. The meetings held will consist of staff unit meetings and/or individual conferences provided by the Supervisors in an effort to effectively catch and manage error trends that have been discovered from 2nd party review findings All documentation will be submitted to the Administrator for review and will be discussed and reviewed with the Supervisors during monthly conference meetings. The Administrator will provide monthly updates on case actions and findings to the Director. Proposed Completion Date: The exparte issue is expected to be resolved when data is received from State, not to exceed timeframeofJune30,2026.Training willbeheldwith MedicaidStaffonWednesday,February18,2026 for other eligibility issues cited. Corrective Action Plan will be implemented immediately after training and significant improvement of all areas cited must be maintained by June 30, 2026.

View Audit 392580

Finding 1181348 (2025-001)

Material Weakness 2025

Hinds County School District

MS

Eligibility Material Weakness Matching / Level of Effort / Earmarking § 200.302 § 200.303

Corrective Action: Before any expenditure is obligated, all revisions/amendments will be approved in MCAPS first. The business Manager, Federal Programs Director, and Superintendentwill ensure MDE's approval is tangible before any obligations. We will implement a tool that allows this process to be ...

Corrective Action: Before any expenditure is obligated, all revisions/amendments will be approved in MCAPS first. The business Manager, Federal Programs Director, and Superintendentwill ensure MDE's approval is tangible before any obligations. We will implement a tool that allows this process to be measured daily. Responsible Parties: Avery Johnson, Business Manager Tiffany Willis, Federal Programs Director Corrective Action Start Date: February 18, 2026

View Audit 392575

Finding 1181337 (2025-006)

Material Weakness 2025

Lakeland School Corporation

IN

Matching / Level of Effort / Earmarking Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

FINDING 2025-006 Finding Subject: Subject: COVID-19 - Education Stabilization Fund - Earmarking Contact Person Responsible for Corrective Action: Jamesi Lemon Contact Phone Number and Email Address: jlemon@lakelandlakers.net Views of Responsible Officials: We concur with the finding. Description of ...

FINDING 2025-006 Finding Subject: Subject: COVID-19 - Education Stabilization Fund - Earmarking Contact Person Responsible for Corrective Action: Jamesi Lemon Contact Phone Number and Email Address: jlemon@lakelandlakers.net Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Director of Business Operations and Director of Student and Staff Success will meet monthly to plan and effectively monitor the 20% earmark requirement. Records of the meetings will be kept in the grant folder as documentation. Anticipated Completion Date: The projected date of completion is August 31, 2026.

View Audit 392548

Finding 1181329 (2025-003)

Material Weakness 2025

Lakeland School Corporation

IN

Special Tests & Provisions Subrecipient Monitoring Material Weakness § 200.208 § 200.303

FINDING 2025-003 Finding Subject: Title I, Part A - Special Tests and Provisions - Assessment System Security Contact Person Responsible for Corrective Action: Alexis Grossman Contact Phone Number and Email Address: agrossman@lakelandlakers.net Views of Responsible Officials: We concur with the find...

FINDING 2025-003 Finding Subject: Title I, Part A - Special Tests and Provisions - Assessment System Security Contact Person Responsible for Corrective Action: Alexis Grossman Contact Phone Number and Email Address: agrossman@lakelandlakers.net Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Training for test security is completed electronically. The staff members then sign a paper form stating the training is complete. The form is now scanned and stored both electronically and physically. Anticipated Completion Date: Already completed.

View Audit 392548

Corrective Action Plans

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