Corrective Action Plans

In Finding 2025-008, it was reported that the Organization did not properly apply sliding fee discounts for certain patients with visits to the Organization during the year ended December 31, 2025. In response to Finding 2025-008, Management recognizes the importance of complying with sliding fee gu...

In Finding 2025-008, it was reported that the Organization did not properly apply sliding fee discounts for certain patients with visits to the Organization during the year ended December 31, 2025. In response to Finding 2025-008, Management recognizes the importance of complying with sliding fee guidelines. The Patient Services Manager has trained all Patient Services Representatives on the sliding fee; performance improvement plans have been developed on employees with errors. Currently the manager has assigned a team to review all sliding fee applications with the goal of 100% reviewed by the end of 2026. Sliding fee applications with errors are returned for correction and communication to the patient. The manager will continue reviewing the sliding fee process in the team's monthly meeting.

View Audit 410860

Finding 1229436 (2025-005)

Material Weakness 2025

Community Partnership of Southeast Missouri, Inc.

MO

Internal Control / Segregation of Duties

Finding Type: Internal Control. Name of Contact Person: Mr. Ryan Essex, Executive Director, (573) 651-3747. Recommendation: The Organization should establish internal control procedures to ensure that the Quarterly Reports and Annual Reports are reviewed by the YHDP Grant Coordinator to ensure accur...

Finding Type: Internal Control. Name of Contact Person: Mr. Ryan Essex, Executive Director, (573) 651-3747. Recommendation: The Organization should establish internal control procedures to ensure that the Quarterly Reports and Annual Reports are reviewed by the YHDP Grant Coordinator to ensure accuracy before submission. This review should be documented. Corrective Action: We will ensure the reports are being reviewed and the review is being documented going forward. Proposed Completion Date: Immediately.

View Audit 410833

Finding 1229435 (2025-004)

Material Weakness 2025

Community Partnership of Southeast Missouri, Inc.

MO

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties

Finding Type: Noncompliance and Internal Control. Name of Contact Person: Mr. Ryan Essex, Executive Director, (573) 650-3747. Recommendation: The Organization should establish internal control procedures to ensure that all proper documentation to support eligibility for participation in the program ...

Finding Type: Noncompliance and Internal Control. Name of Contact Person: Mr. Ryan Essex, Executive Director, (573) 650-3747. Recommendation: The Organization should establish internal control procedures to ensure that all proper documentation to support eligibility for participation in the program is maintained and readily available in the participant file. Corrective Action: The Organization has established better internal controls with new program directors in place. Additionally, determination is made within the Organization along with files being maintained onsite. Proposed Completion Date: Immediately.

View Audit 410833

Finding 1229425 (2025-001)

Material Weakness 2025

City of Virginia, Minnesota

MN

Internal Control / Segregation of Duties

Finding Number: 2025-001 Finding Title: SEGREGATION OF DUTIES Name of Contact Person Responsible for Corrective Action Britt See-Benes, City Administrator and Maegen Hunt Bothwell, Finance Director Corrective Action Planned The City Administrator and Finance Director will attempt to monitor transact...

Finding Number: 2025-001 Finding Title: SEGREGATION OF DUTIES Name of Contact Person Responsible for Corrective Action Britt See-Benes, City Administrator and Maegen Hunt Bothwell, Finance Director Corrective Action Planned The City Administrator and Finance Director will attempt to monitor transactions and restructure the duties of office personnel to help ensure as much segregation of duties as possible within the City’s staffing limitations and funding constraints. Anticipated Completion Date Ongoing.

View Audit 410821

Finding 1229415 (2025-003)

Material Weakness 2025

Kor Community Land Trust

OR

Internal Control / Segregation of Duties Material Weakness § 200.303

2025-003 Finding – Material Weakness in Internal Controls over Compliance Responsible official: Patti Lawrence, Accounting Manager Context and Cause: The Organization has a documented fiscal policy; however the policy does not include procedures that cover specific compliance attributes associated w...

2025-003 Finding – Material Weakness in Internal Controls over Compliance Responsible official: Patti Lawrence, Accounting Manager Context and Cause: The Organization has a documented fiscal policy; however the policy does not include procedures that cover specific compliance attributes associated with federal award requirements. 2 CFR 200.303 requires the recipient to establish, document, and maintain effective internal control over federal awards. Recommendation: It was recommended the Organization develop, document, and implement policies and procedures that address the recent guidance regarding applicable federal compliance requirements. Corrective Action Planned: The Organization has engaged a CPA firm as a 3rd party CFO service and accounting department. The firm is helping develop written policies over federal award attributes. Implementation date: October 31, 2026

View Audit 410807

Finding 1229408 (2025-004)

Material Weakness 2025

Catholic Community Services of Western Washington

WA

Cash Management Internal Control / Segregation of Duties § 200.303

Type of Finding: Significant deficiency in compliance and internal control over compliance over invoice requests for reimbursement. View of Responsible Officials: Management accepts this finding. Review and approval of reimbursement requests is a significant internal control to ensure the agency is ...

Type of Finding: Significant deficiency in compliance and internal control over compliance over invoice requests for reimbursement. View of Responsible Officials: Management accepts this finding. Review and approval of reimbursement requests is a significant internal control to ensure the agency is requesting appropriate reimbursement from our funders. Corrective Action: Management is now requiring all invoice requests to have a cover sheet that will show proof of review. This process will be implemented across all divisions.

View Audit 410806

Finding 1229407 (2025-003)

Material Weakness 2025

Catholic Community Services of Western Washington

WA

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

Significant deficiency in compliance and internal control over compliance relating to approval of timecards. View of Responsible Officials: Management accepts this finding. Approval of timecards by employees and supervisor is required based on agency policies. This issue was due to a supervisor not ...

Significant deficiency in compliance and internal control over compliance relating to approval of timecards. View of Responsible Officials: Management accepts this finding. Approval of timecards by employees and supervisor is required based on agency policies. This issue was due to a supervisor not being available for approval and no delegate was assigned. Corrective Action: Management will require all approvers of payroll to assign delegates to approve timecards in their absence. Exceptions will be documented.

View Audit 410806

Finding 1229375 (2025-003)

Material Weakness 2025

San Diego Youth Services

CA

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Views of Responsible Officials and Planned Corrective Actions San Diego Youth Services (SDYS) concurs with this finding. During the audit period, the Organization experienced significant turnover in both accounting and program leadership positions, which impacted the tracking and timely submission o...

Views of Responsible Officials and Planned Corrective Actions San Diego Youth Services (SDYS) concurs with this finding. During the audit period, the Organization experienced significant turnover in both accounting and program leadership positions, which impacted the tracking and timely submission of required grant and contract reports. To address this issue, SDYS has implemented enhanced internal controls to strengthen grant reporting oversight and ensure compliance with all reporting requirements. These corrective actions include: • The development and maintenance of a centralized grant reporting calendar that identifies all reporting requirements, responsible staff, and submission deadlines for each grant and contract. • Assignment of clear reporting responsibilities to designated program and fiscal staff, with established internal due dates that preceded funder deadlines to allow adequate time for review. • Monthly monitoring of reporting deadlines by program leadership and the Finance Department to ensure timely completion and submission of required reports. • Increased executive oversight by the Chief Operating Officer (COO), who will review grant reporting compliance on a regular basis. Any report anticipated to be submitted after its required deadline must be communicated to and approved by the COO in advance whenever practicable. The reason for the delay, corrective actions, and revised submission timeline will be documented and monitored to prevent recurrence. • Cross-training of program and fiscal staff to ensure continuity of reporting responsibilities during periods of staff turnover or vacancies. Management believes these enhanced procedures will strengthen accountability, improve communication between program and fiscal teams, and ensure accurate and timely submission of all grant and contract reporting requirements going forward.

View Audit 410804

Finding 1229322 (2025-001)

Material Weakness 2025

Town of Swampscott

MA

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

Planned Corrective Action: The next subsequent Project and Expenditure report to be filed for this program will include the expenditures incurred for the period of 1/1/2025-3/31/2025 that were previously unreported. A second person will review subsequent reports for this program for accuracy prior t...

Planned Corrective Action: The next subsequent Project and Expenditure report to be filed for this program will include the expenditures incurred for the period of 1/1/2025-3/31/2025 that were previously unreported. A second person will review subsequent reports for this program for accuracy prior to submission to reduce the risk of non-compliance with program rules. Anticipated Completion Date: April 30th, 2026 Person Responsible for Corrective Action: Patrick Luddy (Director of Finance, Town of Swampscott, MA) Patrick Luddy

View Audit 410784

Finding 1229310 (2025-006)

Material Weakness 2025

Independent School District No. 197

MN

Internal Control / Segregation of Duties Cash Management Eligibility

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-006 Internal Control Over Compliance With Allowable Activities Requirements Finding S...

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-006 Internal Control Over Compliance With Allowable Activities Requirements Finding Summary Criteria – 7 CFR § 210.8 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program allowable activities, including meal count requirements applicable to child nutrition cluster federal programs. Condition – The District did not have sufficient controls in place within its child nutrition cluster to assure that it was accurately reporting meals counts for federal reimbursement, specifically pre-K students at non-public schools and summer meals served at apartment building sites. Corrective Action Plan Actions Planned – The District will review its policies and procedures relating to meal counts for its federal programs and will ensure that accurate meal counts are documented and submitted for federal reimbursement. Official Responsible – Brian Schultz, the District’s Finance Director. Planned Completion Date – December 31, 2026. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – Brian Schultz, the District’s Finance Director, will review and update the District’s policies and procedures relating to eligible meal tracking and reimbursement submission for its child nutrition cluster federal program to ensure compliance with the Uniform Guidance in the future.

View Audit 410783

Finding 1229307 (2025-005)

Material Weakness 2025

Independent School District No. 197

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties School Nutrition Programs

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-005 Internal Control Over Compliance With Federal Suspension and Debarment Requiremen...

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-005 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary Criteria – 2 CFR § 180 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements applicable to the child nutrition cluster. Condition – The District did not have sufficient controls in place within its child nutrition cluster to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Corrective Action Plan Actions Planned – The District will review its policies and procedures relating to suspension and debarment for its federal programs and will ensure that all parties with which it contracts for goods or services are eligible to participate in contracts involving the expenditures of federal program funding. Official Responsible – Brian Schultz, the District’s Finance Director. Planned Completion Date – December 31, 2026. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – Brian Schultz, the District’s Finance Director, will ensure appropriate controls are in place to verify that any vendor with which the District contracts for federal program goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.

View Audit 410783

Finding 1229304 (2025-002)

Material Weakness 2025

Housing Authority of the County of Outagamie

WI

Internal Control / Segregation of Duties

Comments on findings and recommendations Management agrees with the finding and recommendation. Actions taken or planned The Authority will hire staff to eliminate the segregation of duties risk. Anticipated completion date September 15, 2026

View Audit 410781

Finding 1229303 (2025-002)

Material Weakness 2025

City of Baton Rouge - Parish of East Baton Rouge

LA

Reporting Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

The EBR Head Start Program follows the established financial policies, procedures, and approval processes administered through the City of Baton Rouge and Parish of East Baton Rouge. EBR Head Start does not maintain a separate set of finance procedures independent of the City-Parish. Rather, the pro...

The EBR Head Start Program follows the established financial policies, procedures, and approval processes administered through the City of Baton Rouge and Parish of East Baton Rouge. EBR Head Start does not maintain a separate set of finance procedures independent of the City-Parish. Rather, the program operates within the existing City-Parish framework. These processes include the review, approval, and monitoring of activities necessary to support compliance with applicable Federal requirements. The finding identified an opportunity for the Head Start Program to demonstrate how it applies and maintains evidence of these existing controls within the department. The Department of Transportation and Drainage will assess and improve its current guidelines and procedures for ensuring record-keeping compliance with all applicable federal requirements. Although currently being enforced, these remedies will include the following processes: Ensure applicable federal statute requirements are included in the contract advertisement, proposal and bid documents; Identifying and documenting when a contract can be sole sourced; Collecting and storing compliance documentation before, during and after contract execution; Internal audit for compliance; and additional controls identified during discussions between the Department of Transportation and Drainage and its consultants. While internal controls were informally in place for Airport, the department-wide documentation demonstrating the design and operating effectiveness of controls was not formalized. To address this and ensure full compliance with 2 CFR 200.303, management has initiated the following corrective actions: Development and formal adoption of comprehensive, written policies and procedures that explicitly define internal controls over each applicable compliance requirement, utilizing recognized frameworks such as COSO or the Green Book; Implementing a centralized or coordinated approach for maintaining internal control documentation to ensure consistency and guarantee that evidence of control activities is readily accessible; Establish a process for periodic reviews to verify that all applicable compliance documentation is complete, current, and aligned with federal requirements; Relevant staff and departmental personnel will undergo training on these formalized policies to reinforce expectations for documenting internal controls in accordance with Uniform Guidance. The Department of Environmental Services will assess and improve its current guidelines and procedures for documenting internal controls over federal awards and ensuring compliance with applicable federal requirements. These improvements will include developing formal department-level procedures, identifying and maintaining required compliance documentation, establishing consistent record-retention practices, periodically reviewing documentation for completeness and accuracy, providing guidance to appropriate staff, and implementing any additional controls identified as necessary to comply with 2 CFR Part 200.303. Expected Implementation Date: December 2026 Contact person: Kelly LeDuff, Executive Director/Community Development, Federal Programs & Outreach Mike Edwards, Director of Aviation, Baton Rouge Metropolitan Airport Fred Raiford, Director, Transportation and Drainage Adam Smith, Director, Environmental Services

View Audit 410775

Finding 1229292 (2025-001)

Material Weakness 2025

Muscatine Center for Social Action

IA

Reporting Internal Control / Segregation of Duties

The Organization will review and implement processes and controls to ensure they record expenditures in the appropriate period and provide accurate year–end account balances

View Audit 410772

Finding 1229290 (2025-001)

Material Weakness 2025

Cong MacHzikei Hadas of Belz

NY

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.512

The Organization should develop a compliance calendar that includes financial reporting deadlines and set automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before t...

The Organization should develop a compliance calendar that includes financial reporting deadlines and set automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before the fiscal year end, and the auditors should put this engagement on their calendar well in advance of the due date. The Organization should establish a timeline with the auditors that aligns with internal deadlines to ensure sufficient time to conduct the audit. The Organization’s Board of Directors should be more actively engaged in the auditing and reporting process to establish a greater degree of accountability and oversight. Anticipated Completion Date: 03/31/2027. Actions Taken: The Organization has begun implementing the above-mentioned recommendations. The Organization will ensure that it has a working compliance calendar to assist in meeting the reporting deadline. Additionally, the Organization has engaged the audit firm for their upcoming fiscal year-end, and the audit firm has put it on its calendar to begin the audit process well in advance. The Organization’s board of directors has agreed to oversee the auditing and reporting processes to a greater extent. With these actions, the Organization expects to comply with the Uniform Guidance for single audits deadline for the fiscal year end 06/30/2026. Mr. Moshe Weiss, Food Program director, has been designated to monitor the plan of corrective action for this finding. He can be reached at 845-425-0909. Contact Person Responsible for Corrective Action: Moshe Weiss, Food Program Director

View Audit 410768

Finding 1229281 (2025-001)

Material Weakness 2025

Bais Yaakov Elementary of Rockland County

NY

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.512

The Organization should develop a compliance calendar that includes financial reporting deadlines and set automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before t...

The Organization should develop a compliance calendar that includes financial reporting deadlines and set automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before the fiscal year end, and the auditors should put this engagement on their calendar well in advance of the due date. The Organization should establish a timeline with the auditors that aligns with internal deadlines to ensure sufficient time to conduct the audit. The Organization’s Board of Directors should be more actively engaged in the auditing and reporting process to establish a greater degree of accountability and oversight. Anticipated Completion Date: 05/31/2027. Actions Taken: The Organization has begun implementing the above-mentioned recommendations. The Organization will ensure that it has a working compliance calendar to assist in meeting the reporting deadline. Additionally, the Organization has engaged the audit firm for their upcoming fiscal year-end, and the audit firm has put it on its calendar to begin the audit process well in advance. The Organization’s board of directors has agreed to oversee the auditing and reporting processes to a greater extent. With these actions, the Organization expects to comply with the Uniform Guidance for single audits deadline for the fiscal year end 08/31/2026. Nisson Portnoy, Food Program director, has been designated to monitor the plan of corrective action for this finding. He can be reached at 845-368-2247. Contact Person Responsible for Corrective Action: Nisson Portnoy, Food Program Director

View Audit 410757

Finding 1229279 (2025-005)

Material Weakness 2025

Idaho Coalition Against Sexual & Domestic Violence, Inc.

ID

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance § 200.308 § 200.309 § 200.403 § 200.514 § 200.514(C)

THE COALITION WILL MAINTAIN A CENTRALIZED GRANT REGISTER IDENTIFYING EACH AWARD NUMBER, PROJECT CODE, BEGINNING DATE, ENDING DATE, AND APPROVED PERIOD OF PERFORMANCE. FINANCE WILL USE THE REGISTER DURING MONTHLY CLOSE AND GRANT REVIEW TO VERIFY THAT PAYROLL AND NON-PAYROLL EXPENDITURES ARE CHARGED T...

THE COALITION WILL MAINTAIN A CENTRALIZED GRANT REGISTER IDENTIFYING EACH AWARD NUMBER, PROJECT CODE, BEGINNING DATE, ENDING DATE, AND APPROVED PERIOD OF PERFORMANCE. FINANCE WILL USE THE REGISTER DURING MONTHLY CLOSE AND GRANT REVIEW TO VERIFY THAT PAYROLL AND NON-PAYROLL EXPENDITURES ARE CHARGED TO THE CORRECT ACTIVE GRANT/PROJECT. BEFORE AND AFTER AN AWARD END DATE, FINANCE WILL REVIEW PROJECT ACTIVITY FOR COSTS POSTED OUTSIDE THE APPROVED PERIOD, CONFIRM WHETHER ANY PRE-AWARD OR CLOSEOUT COST IS AUTHORIZED, AND RECLASSIFY MISCODED TRANSACTIONS BEFORE GRANT REPORTING IS FINALIZED. NEW AWARD/PROJECT CODES WILL BE ESTABLISHED AND COMMUNICATED BEFORE COSTS ARE CHARGED TO A SUCCESSOR AWARD. IN ADDITION, AFTER THE MONTHLY CLOSE PROCESS IS COMPLETE, FINANCE WILL DISTRIBUTE GRANT STATEMENTS TO ADMINISTRATION TO REVIEW EXPENDITURES AND REMAINING GRANT BALANCES FOR REASONABLENESS. THIS PROVIDES AN ADDITIONAL LAYER OF OVERSIGHT TO VERIFY THAT GRANT-RELATED EXPENSES HAVE BEEN RECORDED ACCURATELY.

View Audit 410756

Finding 1229278 (2025-004)

Material Weakness 2025

Idaho Coalition Against Sexual & Domestic Violence, Inc.

ID

Internal Control / Segregation of Duties Reporting § 200.514 § 200.514(C)

THE COALITION WILL REQUIRE DOCUMENTED REVIEW AND APPROVAL OF EMPLOYEE TIME FOR EVERY PAYROLL PERIOD AND WILL RETAIN PAYROLL AND TIMEKEEPING RECORDS IN AN AUDIT-ACCESSIBLE LOCATION. BEFORE PAYROLL IS PROCESSED, DESIGNATED MANAGEMENT WILL REVIEW TIME ENTRIES FOR COMPLETENESS, FUNDING ALLOCATION, LEAVE...

THE COALITION WILL REQUIRE DOCUMENTED REVIEW AND APPROVAL OF EMPLOYEE TIME FOR EVERY PAYROLL PERIOD AND WILL RETAIN PAYROLL AND TIMEKEEPING RECORDS IN AN AUDIT-ACCESSIBLE LOCATION. BEFORE PAYROLL IS PROCESSED, DESIGNATED MANAGEMENT WILL REVIEW TIME ENTRIES FOR COMPLETENESS, FUNDING ALLOCATION, LEAVE, AND APPROVAL STATUS. THE PAYROLL FILE RETAINED FOR EACH PERIOD WILL INCLUDE THE APPROVED TIME RECORD, PAYROLL REGISTER, ALLOCATION DETAIL, AND EVIDENCE OF PREPARER/REVIEWER APPROVAL. WHEN TIMEKEEPING OR PAYROLL SYSTEMS CHANGE, THE COALITION WILL EXPORT AND PRESERVE HISTORICAL REPORTS AND APPROVAL RECORDS FOR THE APPLICABLE RECORD-RETENTION PERIOD BEFORE ACCESS TO THE PRIOR SYSTEM ENDS.

View Audit 410756

Finding 1229269 (2025-002)

Material Weakness 2025

Project Support Housing II

CO

HUD Housing Programs Internal Control / Segregation of Duties Cash Management

Management concurs with the auditor’s recommendations. The Organization experienced an extreme legal issue with one tenant that drained the checking account above the usual expenses in 2024 and 2025 plus lowered the revenue for the unit until the Organization could successfully evict the tenant from...

Management concurs with the auditor’s recommendations. The Organization experienced an extreme legal issue with one tenant that drained the checking account above the usual expenses in 2024 and 2025 plus lowered the revenue for the unit until the Organization could successfully evict the tenant from the property. This was an unusually aggressive and unethical tenant that used the system to inflict continuous financial hardships on the Organization. To remedy this situation, management noted there are no pending legal issues at this time or outstanding attorney charges and will: Submit proper documentation to HUD to request retroactive approval of transfer with HUD Funds Authorization. Management will be in contact with HUD on how to resolve the unauthorized transfer covering the extreme legal issue. This action will be addressed within the full picture of the need to stabilize the project’s physical and financial issues to ensure that the organization continues to function effectively. Implement internal controls to ensure that all future withdrawals from restricted account receive required HUD authorization prior to disbursement and banking restrictions. Provide staff training on HUD regulatory requirements related to restricted accounts.

View Audit 410749

Finding 1229268 (2025-002)

Material Weakness 2025

Housing Authority of the City of Athens, Alabama

AL

Significant Deficiency Internal Control / Segregation of Duties

Corrective Action Plan: The Housing Authority concurs with the recommendation. The Authority recognizes that limited accounting staff and competing operational demands contributed to delays in completing accurate unaudited multifamily submissions and timely identifying necessary adjusting entries. M...

Corrective Action Plan: The Housing Authority concurs with the recommendation. The Authority recognizes that limited accounting staff and competing operational demands contributed to delays in completing accurate unaudited multifamily submissions and timely identifying necessary adjusting entries. Management is implementing a sustainable solution that combines specialized technical assistance, documented procedures, staff training, and executive review. The Authority has begun reviewing the calendar year 2021 submission and compiling the financial records required for the outstanding 2022 through 2025 submissions. The Authority is seeking to retain an expert in HUD Multifamily and REAC financial reporting to assist staff in correcting prior submissions and preparing, validating, and submitting all required filings. The Authority will complete the following corrective actions: 1. Reconcile and validate the general ledger balances, trial balances, and supporting schedules for each affected reporting year. 2. Correct and resubmit the calendar year 2021 unaudited multifamily submission and prepare and submit the required unaudited multifamily submissions for calendar years 2022 through 2025. 3. Establish a written year-end closing and REAC submission calendar and checklist identifying responsible staff, required supporting schedules, due dates, and supervisory review before submission. 4. Provide appropriate staff training and require quarterly management review of balance-sheet reconciliations, audit-adjustment status, and HUD submission deadlines until the backlog is eliminated and the revised controls are operating effectively. hese measures are designed to address the Authority's limited staffing capacity while creating a practical and sustainable process for accurate financial reporting and timely HUD submissions.

View Audit 410746

Finding 1229267 (2025-001)

Material Weakness 2025

Housing Authority of the City of Athens, Alabama

AL

Cash Management HUD Housing Programs Material Weakness

Corrective Action Plan: The Housing Authority concurs with the auditor's recommendation. The outstanding inter-entity balance has been identified as a legacy balance associated with the RAD conversion and the transfer of assets and liabilities to Athens Housing Management, LLC. Management's review a...

Corrective Action Plan: The Housing Authority concurs with the auditor's recommendation. The outstanding inter-entity balance has been identified as a legacy balance associated with the RAD conversion and the transfer of assets and liabilities to Athens Housing Management, LLC. Management's review and reconciliation of the balance are in progress. Before recording any final disposition, the Authority will determine the balance's origin, funding source, supporting documentation, legal obligation, and collectability, including whether federally restricted or RAD/PBRA project funds are involved. The Board of Commissioners may authorize the accounting disposition of the balance, subject to the Authority's governing documents and applicable law; however, a Board vote alone will not be treated as authority to forgive or extinguish a federally restricted or project-level receivable. The Authority will complete the following process: 1. Complete and document the reconciliation and proposed accounting treatment in both entities' records, with management and legal review, and provide the supporting documentation to the Authority's auditor. 2. Determine whether the balance is subject to the RAD closing documents, HAP Contract, RAD Use Agreement, Surplus Cash requirements, or other Federal restrictions. If so, submit the reconciliation, proposed entries, supporting documentation, and draft resolutions to the appropriate HUD Field Office or Multifamily Account Executive and obtain written direction or concurrence, as applicable. 3.Present conditional resolutions to the governing boards of the Housing Authority and Athens Housing Management, LLC, as applicable, authorizing the Chief Executive Officer to record the disposition only after all required HUD approvals or concurrences have been received. 4. Record corresponding entries in both entities, retain the complete reconciliation and approval package, and disclose the final resolution to the auditor. This process is consistent with 2 CFR §§ 200.302 and 200.303, which require accurate, supported financial records, accountability for Federal funds and assets, and documented internal controls. It also recognizes the RAD Notice requirements governing Surplus Cash and related-party advances. Going forward, inter-entity balances will be reconciled monthly, reviewed by management, and any unresolved items will be reported to the Chief Executive Officer as part of the monthly financial review.

View Audit 410746

Finding 1229249 (2025-009)

Material Weakness 2025

Urshan College

MO

Eligibility Reporting Significant Deficiency § 200.303

2025-009 Federal Direct Student Loans – Assistance Listing No. 84.268 Federal Pell Grant Program – Assistance Listing No. 84.063 Recommendation: We recommend the University design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Explanation ...

2025-009 Federal Direct Student Loans – Assistance Listing No. 84.268 Federal Pell Grant Program – Assistance Listing No. 84.063 Recommendation: We recommend the University design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University reviewed its awarding and reconciliation processes following the identified discrepancy between COD and the institutional ledger, which resulted from packaging based on an earlier ISIR transaction without confirming the most recent ISIR data. To address this, the University has partnered with FA Solutions and implemented enhanced controls within Regent, including system checks to flag updated ISIR information and require confirmation of the most current transaction prior to packaging.Additionally, reconciliations and related reporting provided by FA Solutions will be reviewed for accuracy and completeness. Name(s) of the contact person(s) responsible for corrective action: Levi Powell, Director of Financial Aid Planned completion date for corrective action plan: 3/31/2026

View Audit 410734

Finding 1229247 (2025-007)

Material Weakness 2025

Urshan College

MO

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2025-007 Federal Direct Student Loans – Assistance Listing No. 84.268 Federal Pell Grant Program – Assistance Listing No. 84.063 Recommendation: We recommend the University design controls to ensure an adequate review process is in place to ensure compliance over stale checks that need to be returne...

2025-007 Federal Direct Student Loans – Assistance Listing No. 84.268 Federal Pell Grant Program – Assistance Listing No. 84.063 Recommendation: We recommend the University design controls to ensure an adequate review process is in place to ensure compliance over stale checks that need to be returned to the Department of Education after 240 days. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University is implementing enhanced controls to ensure compliance with stale-dated Title IV credit balance checks. This includes establishing a monthly review process in coordination with Accounts Payable, Accounts Receivable, and the Financial Aid Office to identify any outstanding checks approaching or exceeding the 240-day threshold. As part of this process, a tracking mechanism will be maintained to monitor the status and issuance dates of all Title IV credit balance checks. The University will make reasonable efforts to contact students and reissue checks, as appropriate, to ensure funds are received. Any checks that remain uncashed and meet the stale-dated threshold will be voided and returned to the U.S. Department of Education in accordance with federal requirements. These procedures will be formalized within a standardized SOP to ensure consistent and timely compliance moving forward. Name(s) of the contact person(s) responsible for corrective action: Levi Powell, Director of Financial Aid, Accounts Receivable Clerk, and Accounts Payable Clerk Planned completion date for corrective action plan: 4/30/2026

View Audit 410734

Corrective Action Plans

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