Corrective Action Plans

Finding 1217401 (2025-001)

Material Weakness 2025

AZ

Reporting Internal Control / Segregation of Duties

The School has hired a consultant to train and assist school personnel in internal controls and processing transactions. The School has hired a Business Manager and Human Resource Manager.

View Audit 403596

Finding 1217376 (2025-004)

Material Weakness 2025

Low Rent Housing Agency of Fort Madison

IA

HUD Housing Programs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding 2025-004 – Activities Allowed/Allowable Costs/Cost Principles Management agrees with the finding regarding activities allowed, allowable costs, and compliance with federal cost principles. The Housing Authority has reviewed its procedures related to processing and approving program expenditu...

Finding 2025-004 – Activities Allowed/Allowable Costs/Cost Principles Management agrees with the finding regarding activities allowed, allowable costs, and compliance with federal cost principles. The Housing Authority has reviewed its procedures related to processing and approving program expenditures and recognizes the need to strengthen internal controls and documentation standards. Management will implement additional review procedures to ensure expenses charged to HUD programs are properly supported, allowable under program requirements, and accurately allocated to the appropriate funding source. Corrective actions will include enhanced supervisory review of invoices and disbursements, improved supporting documentation practices, and periodic monitoring of program expenditures. Management will also continue coordination with the fee accountant and auditor to ensure compliance with Uniform Guidance and HUD requirements. The Housing Authority will provide additional staff training regarding allowable costs and documentation requirements to reduce the risk of future noncompliance. Responsible Party: Executive Director and Operations Accountant Expected Completion Date: September 30, 2026

View Audit 403580

Finding 1217374 (2025-002)

Material Weakness 2025

Ho-Chunk Housing and Community Development Agency, Inc.

WI

Eligibility Internal Control / Segregation of Duties Subrecipient Monitoring

Finding 2025-002 – Eligibility Assistance Listing No. 14.867 – Indian Housing Block Grant Condition: Pursuant to testing of eligibility and internal controls over eligibility, auditors noted the following control deficiency and noncompliance: • Two tenants did not have an annual recertification. • O...

Finding 2025-002 – Eligibility Assistance Listing No. 14.867 – Indian Housing Block Grant Condition: Pursuant to testing of eligibility and internal controls over eligibility, auditors noted the following control deficiency and noncompliance: • Two tenants did not have an annual recertification. • One tenant’s rent calculation did not match the lease agreement. Recommendation: We recommend that the Agency strengthen its internal controls over eligibility to monitor all relevant information and documentation affecting the eligibility process. Corrective Action Plan: • Ledger created to track recertification dates and completions- already in place • Supervisor will email occupancy of any incomplete recerts monthly • Tenant Files of completed recerts checked quarterly to verify all docs required are in file • TS Staff will verify that the rent calculation form and Lease rent amount are accurate and Entered on lease properly. Name of Contact Person Responsible for Corrective Action Plan: Patti Emery TS Supervisor Anticipated Completion Date: August 1, 2026

View Audit 403579

Finding 1217372 (2025-001)

Material Weakness 2025

City of Daytona Beach, Florida

FL

Questioned Costs Subrecipient Monitoring Cash Management § 200.303

CORRECTIVE ACTION PLAN May 21, 2026 The City of Daytona Beach, Florida respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Carr, Riggs & Ingram, L.L.C. 7506 Lynx Way, Suite 201 Melbourne, Florida 329...

CORRECTIVE ACTION PLAN May 21, 2026 The City of Daytona Beach, Florida respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Carr, Riggs & Ingram, L.L.C. 7506 Lynx Way, Suite 201 Melbourne, Florida 32940 Audit Period: Fiscal Year October 1, 2024 – September 30, 2025 The finding from the Schedule of Findings and Questioned Costs is discussed below. The finding number corresponds to the number assigned in the schedule. Section III–Federal Award Findings and Questioned Costs 2025-001 GRANT REPORTING U.S. Department of Homeland Security ALN 97.036 – Disaster Grants – Public Assistance Contract No. PA-B3-06-74-01-312 and PA-DR-06-74-01-166 Passed through the Florida Division of Emergency Management 2025 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports and reimbursement requests should be subject to independent review for the full fiscal year to verify completeness, validity and timeliness of submission. The grant agreement requires quarterly progress reports to be filed with the pass-through entity, Florida Division of Emergency Management. Condition: Review of quarterly reports and reimbursement requests were not documented by the City before submittal. Cause of condition: The department at the City that is responsible for managing the grant does not have a process in place to document their review of quarterly reports and reimbursement requests submitted to the Florida Division of Emergency Management. Potential effect of condition: Reports submitted to the Florida Division of Emergency Management may be incomplete, include errors, or be submitted late. Perspective: The department of the City that manages the grant did not have a documented process in place for the review and approval of quarterly reports and reimbursement requests prior to submittal to the grantor. Questioned costs: None noted. Reported finding is a deficiency in internal control. Recommendation: The City should develop procedures to ensure documented management review of all reporting prior to submission to grantors. Management’s Response: The City updated its control process to ensure that reports prepared are reviewed by City staff or management prior to being submitted to grantor. Responsible Parties: David Waller, Public Works Director, Natalia Eckroth, CFO and Christine Aiken, Assistant Finance Director. Anticipated Completion: March 31, 2026.

View Audit 403575

Finding 1217370 (2025-001)

Material Weakness 2025

Rich Township High School District 227

IL

Cash Management Reporting Equipment & Real Property Management

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct leased capital assets, buildings, land improvements and equipment categories of capital assets. Plan: The District and Assistant Superintendent of Administrative Services will implement inter...

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct leased capital assets, buildings, land improvements and equipment categories of capital assets. Plan: The District and Assistant Superintendent of Administrative Services will implement internal controls to properly record capital assets on a timely basis priorto audit fieldwork. Anticipated Date of Completion: Fiscal Year 2026 Name of Contact Person: Tracy Middleton, Director of Business and Transportation Services Management Response: The district conducted a capital asset management review, and it resulted in a restatement of fund balance. The district will continue to monitor in future years in coordination with Industrial Appraisals.

View Audit 403569

Finding 1217354 (2025-006)

Material Weakness 2025

Catahoula Parish School Board

LA

Cash Management Reporting Internal Control / Segregation of Duties

Reference # and title: 2025-006 Controls and Compliance over Reporting on ESSER Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education C...

Reference # and title: 2025-006 Controls and Compliance over Reporting on ESSER Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education COVID-19 Education Stabilization Funds: Education Stabilization (ESSER III) 84.425U 2021 Criteria or specific requirement: Good internal controls require that all requests for reimbursement and special reporting submitted to the Louisiana Department of Education (LDOE) are adequately reviewed and approved before submission, but in a timely manner, to ensure amounts reported are complete and accurate. Condition found: Total expenditures per the general ledger did not agree to the amounts reported in the fiscal year end’s periodic expense report submission. It appears that part of the reason the expenditures did not agree was due to prior year errors in reporting. There is no review and approval process by a second person over the periodic expense report submissions. In testing the special reporting for the ESSER program, it was noted that the School Board had not maintained the supporting documentation for this report and therefore could not be adequately tested. Corrective action planned: We will acquire the backup for reports such as this moving forward. Person responsible for corrective action: Mrs. Lora White, Business Manager 200 Bushley Street Phone: (318) 744-5727 Harrisonburg, LA 71340 Fax: (318) 744-9221 Anticipated completion date: This is expected to be completed July 2025.

View Audit 403541

Finding 1217349 (2025-004)

Material Weakness 2025

Catahoula Parish School Board

LA

Eligibility Internal Control / Segregation of Duties

Reference # and title: 2025-004 Controls and Compliance over Title I Targeting (Eligibility) Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department o...

Reference # and title: 2025-004 Controls and Compliance over Title I Targeting (Eligibility) Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education Title I 84.010A 2025 Criteria or specific requirement: Title I, Part A of the Elementary and Secondary Education Act of 1965, as amended by Every Student Succeeds Act, requires eligibility to be determined based on the number of children ages 5 through 17 from low-income families. School Board management is required to review all total enrollment and low-income families’ data to ensure that the underlying data includes only students ages 5 through 17 and to certify that the eligibility calculations are complete and accurate. Condition found: Title I management completes and submits the Title I Targeting online to the Louisiana Department of Education (LDOE). The LDOE pre-populates the enrollment and number of low-income students in the Title I Targeting; however, these numbers are required to be reviewed and changed, if necessary, by the School Board. In reviewing the underlying data in determining eligibility for each school, it was noted that the School Board did not remove those students under age 5, which resulted in the ranking of schools to not be accurate. Corrective action planned: The School Board was unaware of the data file used needed to be reviewed; however, we will only include the accurate age band moving forward. Person responsible for corrective action: Mr. Eric Chauvin, Supervisor - Student Records, Technology & Transportation 200 Bushley Street Phone: (318) 744-5727 Harrisonburg, LA 71340 Fax: (318) 744-9221 Anticipated completion date: This is expected to be completed October 2025.

View Audit 403541

Finding 1217346 (2025-004)

Material Weakness 2025

Todd County

MN

Internal Control / Segregation of Duties Questioned Costs Reporting

Internal Control Over Reporting Department of Human Services – Grants to States for Medicaid – Assistance Listing No. 93.778 Recommendation: We recommend the county implement processes and procedures to ensure all reports have a timely review documented by someone other than the preparer. Explanatio...

Internal Control Over Reporting Department of Human Services – Grants to States for Medicaid – Assistance Listing No. 93.778 Recommendation: We recommend the county implement processes and procedures to ensure all reports have a timely review documented by someone other than the preparer. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: County will continue to train staff to ensure they are aware of the requirements. Names of the contact person responsible for corrective action: Denise Gaida, Auditor- Treasurer Planned completion date for corrective action plan: December 31, 2026

View Audit 403530

Finding 1217343 (2025-004)

Material Weakness 2025

The Salvation Army Golden State Division

CA

Material Weakness Reporting Internal Control / Segregation of Duties

Finding 2025-004- Reporting-Material Weakness in Internal Controls over Compliance and Non-Compliance Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Year(s): 2025 Federal Agency: Department of Treasury Pass-Through Agencies: State of Oregon and M...

Finding 2025-004- Reporting-Material Weakness in Internal Controls over Compliance and Non-Compliance Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Year(s): 2025 Federal Agency: Department of Treasury Pass-Through Agencies: State of Oregon and Multnomah County Responsible Party: Jeanne Stromberg, Major- Divisional Finance Secretary-Cascade Division 916-501-6374 RESPONSE: Management will design and implement a review process over the submission of the quarterly and annual reports to ensure review, approval and timely submission. Documentation for the evidence of the preparation and timely submission will be maintained by the approver. Effective Date: November 2026

View Audit 403529

Finding 1217311 (2025-005)

Material Weakness 2025

Sanders Unified School District No. 18

AZ

Questioned Costs Special Tests & Provisions Subrecipient Monitoring § 200.303

2025-005: WAGE RATE REQUIREMENTS Program: Impact Aid Federal Assistance Listing Number: 84.041 Federal Agency: U.S. Department of Education Pass-Through Agency: Direct award Grantor Number: Not applicable Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in...

2025-005: WAGE RATE REQUIREMENTS Program: Impact Aid Federal Assistance Listing Number: 84.041 Federal Agency: U.S. Department of Education Pass-Through Agency: Direct award Grantor Number: Not applicable Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: N. Special Tests and Provisions – Wage Rate Requirements Repeat Finding: Yes. Same as finding 2024-001 and 2023-002. Criteria or Specific Requirement: Federal regulations require that contractors and subcontractors performing work on federally funded construction projects pay laborers and mechanics wages at rates not less than those prevailing on similar projects in the locality. These requirements are established under the Davis-Bacon Act and incorporated into federal grant compliance requirements under 2 CFR Part 200. Adequate monitoring of compliance with these wage requirements is required to ensure that workers are being paid correctly per 29 CFR 5.5 compliance provisions. Per 2 CFR section 200.303(a), a non-Federal entity must establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for one of 2 contractors that were tested and funded under the Impact Aid program, we noted that the District did not obtain or review certified payroll reports from contractors to verify compliance with federal prevailing wage requirements. As a result, the District could not demonstrate that contractors complied with required wage provisions for the sampled projects. Corrective Action: The District will ensure wage rate requirements are maintained for all vendors as appropriate under Uniform Guidance and the provision of the Davis Bacon Act. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Kay Morris, Superintendent

View Audit 403486

Finding 1217308 (2025-001)

Material Weakness 2025

NAMI Greater San Antonio

TX

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties

The Organization will implement an official procurement policy and set forth internal controls to follow the procedures set forth in 2 CFR Part 200 Subpart D.

View Audit 403478

Finding 1217302 (2025-002)

Material Weakness 2025

Alexander County Housing Authority

IL

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Tenant Files. 2025-001. Tenant Files Corrective action planned: The Corrective Action plan for this Audit Finding 2025-002 is that the Alexander County Housing Authority is under new management. The Housing Authority of Pulaski County was contracted on February 2, 2025, to manage this housing author...

Tenant Files. 2025-001. Tenant Files Corrective action planned: The Corrective Action plan for this Audit Finding 2025-002 is that the Alexander County Housing Authority is under new management. The Housing Authority of Pulaski County was contracted on February 2, 2025, to manage this housing authority. On this date, all HUD guidelines followed at Pulaski County were implemented at Alexander County Housing Authority. Contact person: JoAnn Pink, Executive Director. Anticipated completion date: September 30, 2026.

View Audit 403467

Finding 1217300 (2025-002)

Material Weakness 2025

Palm Beach County Housing Authority

FL

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend the Authority strengthen internal controls over HQS enforcement by implementing procedures to track and monitor HQS deficiencies and required correction timelines. Explanation of disagreement with audit f...

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend the Authority strengthen internal controls over HQS enforcement by implementing procedures to track and monitor HQS deficiencies and required correction timelines. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: PBCHA has made significant improvements in inspection compliance and will continue to monitor its third-party inspection vendor to ensure timely submission of inspection reports. The agency will utilize Yardi and other centralized tracking systems to monitor inspection due dates and follow-up activities, ensuring inspections are completed in accordance with HUD requirements. PBCHA will also provide ongoing staff training to reinforce NSPIRE requirements and compliance expectations. Name(s) of the contact person(s) responsible for corrective action: Yvette Bembry Planned completion date for corrective action plan: December 31, 2026

View Audit 403465

Finding 1217294 (2025-003)

Material Weakness 2025

Safehaven of Tarrant County

TX

Questioned Costs Period of Performance Significant Deficiency

Finding 2025-003: Period of Performance – Significant deficiency in internal controls over compliance and compliance finding. Management Response The agency has added another level of review for Requests for Reimbursement (RFRs) to improve internal controls. Effective 10.01.2025, grant expense charg...

Finding 2025-003: Period of Performance – Significant deficiency in internal controls over compliance and compliance finding. Management Response The agency has added another level of review for Requests for Reimbursement (RFRs) to improve internal controls. Effective 10.01.2025, grant expense charges are processed as follows: 1. Finance Assistant creates grant Request for Reimbursement (RFR). Upon completion of the RFR, theAssistant signs the RFR as completed, then submits completed RFR along with supportingdocumentation to the EVP of Finance. Formerly, the creation of the RFR was being done by the EVP of Finance, with the addition of staff, we were able to relocate those duties to Finance Assistance in the Fall of 2025. 2. The EVP of Finance reviews the RFR for correct calculations and if the appropriate supportingdocumentation is attached. The EVP of Finance signs the RFR, then presents it to the ChiefOperating Officer for final approval. 3. Chief Operating Officer receives RFR from EVP of Finance, reviews RFR and approves for submissionto the Grantor or sends back for corrections. Adding a staff member in the Finance department allowed us to add another level of approval. In addition, notations have been made on all internal grant tracking documents, as to the start of each grant period. A payroll pay calendar is accessible to verify the exact dates covered on a pay period.

View Audit 403455

Finding 1217291 (2025-001)

Material Weakness 2025

Safehaven of Tarrant County

TX

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring

Finding 2025-001: Reporting – Material weakness in internal controls over compliance and compliance finding. Management Response Effective May 12, 2026, the agency enhanced its performance reporting oversight by requiring the Chief of Mission and the Executive Vice President of Victim Services to re...

Finding 2025-001: Reporting – Material weakness in internal controls over compliance and compliance finding. Management Response Effective May 12, 2026, the agency enhanced its performance reporting oversight by requiring the Chief of Mission and the Executive Vice President of Victim Services to review and approve preliminary reports to funding entities drafted by the compliance department, prior to submission. The agency’s compliance department, which consists of a Database Manager, Compliance Manager, and Executive Vice President of Compliance, is tasked with ensuring reliability and validity of client-level database entered in the client database. Monthly, the agency’s compliance department reconciles the number of new and unduplicated participants served by the agency as a whole and within each grant-funded program. The compliance department’s report originator will save the source data electronically, ensuring it matches the official figures submitted to the funding entity. Source data reports will be available upon request by agency staff and/or funders.

View Audit 403455

Finding 1217279 (2025-002)

Material Weakness 2025

CITY OF PROSPECT HEIGHTS

IL

Subrecipient Monitoring Internal Control / Segregation of Duties

Corrective Action Plan Finding No: 2025-002 Condition: During the audit, the City did not verify that the contractor or subcontractor submitted the required certified payrolls for work performed under the federally assisted construction contract. As a result, the City did not maintain or review suff...

Corrective Action Plan Finding No: 2025-002 Condition: During the audit, the City did not verify that the contractor or subcontractor submitted the required certified payrolls for work performed under the federally assisted construction contract. As a result, the City did not maintain or review sufficient documentation to demonstrate compliance with wage rate requirements for all applicable weeks during the audit period. Management’s Plan: The City recognizes the need to improve internal controls related to grant disbursements for labor provided by our contractors. The project this past year included participation from multiple federal funding agencies and payments by the City as well as direct payments to contractors by the funding agencies. We have already added additional procedures and checkpoints to provide for adequate documentation related to certified payrolls. In addition, the City is planning to procure a grant tracking system to automate tracking the details for every project. Anticipated Date of Completion: 12/31/26 Name of Contact Person: Cheri Grieco, Finance Director

View Audit 403433

Finding 1217278 (2025-001)

Material Weakness 2025

CITY OF PROSPECT HEIGHTS

IL

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Corrective Action Plan Finding No: 2025-001 Condition: During the audit, our procedures indicated that capital expenditures were primarily reviewed at an individual invoice level to determine whether they exceeded the capitalization threshold. We also noted that communication between the City’s fina...

Corrective Action Plan Finding No: 2025-001 Condition: During the audit, our procedures indicated that capital expenditures were primarily reviewed at an individual invoice level to determine whether they exceeded the capitalization threshold. We also noted that communication between the City’s finance department and engineers or other City staff responsible for managing grants and capital projects is not consistently formalized. Management’s Plan: Management is committed to strengthening coordination and oversight of the City’s grant-funded capital projects through centralizing project tracking via grant/project management software, implementing rigorous compliance monitoring, and improving intradepartmental communication. By centralizing our grants through the course of their lifespans, we intend to better track the progress of our grant projects and budgets and with the inclusion of grant document storage, to enhance compliance across departments. We will also designate coordination teams consisting of liaisons across administration, finance, engineering, public works, and grant writers to ensure internal alignment. Anticipated Date of Completion: 4/30/2027 Name of Contact Person: Cheri Grieco, Finance Director

View Audit 403433

Finding 1217269 (2025-001)

Material Weakness 2025

YMCA of Greater Louisville, Inc.

KY

Reporting Internal Control / Segregation of Duties

The YMCA and Affiliates’ have begun enhancing internal controls related to the reporting process through additional staff training, increased cross-training of personnel responsible for report preparation and submission, and the development of more formalized review procedures. Management has also r...

The YMCA and Affiliates’ have begun enhancing internal controls related to the reporting process through additional staff training, increased cross-training of personnel responsible for report preparation and submission, and the development of more formalized review procedures. Management has also reinforced expectations regarding reporting requirements and completeness prior to submission. These actions are intended to further strengthen consistency and oversight within the reporting process while building upon controls already in place.

View Audit 403430

Finding 1217267 (2025-002)

Material Weakness 2025

PRESERVATION TRUST OF VERMONT, INC.

VT

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 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 September 30, 2025. During the audit for PTV’s fiscal year 2025, it was determined that we should add an additional layer of confirmation to our a...

The Organization acknowledges and concurs with the auditor’s finding as discussed within the Schedule of Findings and Questioned Costs for the year-ended September 30, 2025. During the audit for PTV’s fiscal year 2025, it was determined that we should add an additional layer of confirmation to our approval process. Currently, the President reviews invoices prior to signing the checks, thereby signaling approval. Moving forward, in addition to this review, the President will also confirm approval by initialing the invoice itself. Beyond this initial next step, PTV will also review its current Fiscal Policy to consider implementation of an approval process that allows other authorized approvers the authority to review expenses up to certain thresholds. Policy development at this level requires Finance Committee involvement and full Board approval, so it may take several months to fully implement a new process. We appreciate the opportunity to continue to strengthen PTV’s internal controls and financial operations.

View Audit 403427

Finding 1217265 (2025-001)

Material Weakness 2025

PRESERVATION TRUST OF VERMONT, INC.

VT

Allowable Costs / Cost Principles Reporting Significant Deficiency

The Organization acknowledges and concurs with the auditor’s finding as discussed within the Schedule of Findings and Questioned Costs for the year-ended September 30, 2025. During the audit for PTV’s fiscal year 2025, it was determined that we should add an additional layer of confirmation to our a...

The Organization acknowledges and concurs with the auditor’s finding as discussed within the Schedule of Findings and Questioned Costs for the year-ended September 30, 2025. During the audit for PTV’s fiscal year 2025, it was determined that we should add an additional layer of confirmation to our approval process. Currently, the President reviews invoices prior to signing the checks, thereby signaling approval. Moving forward, in addition to this review, the President will also confirm approval by initialing the invoice itself. Beyond this initial next step, PTV will also review its current Fiscal Policy to consider implementation of an approval process that allows other authorized approvers the authority to review expenses up to certain thresholds. Policy development at this level requires Finance Committee involvement and full Board approval, so it may take several months to fully implement a new process. We appreciate the opportunity to continue to strengthen PTV’s internal controls and financial operations.

View Audit 403427

Finding 1217262 (2025-004)

Material Weakness 2025

Clay Local School District

OH

Cash Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.302 § 200.303

Utilize the snack count option within the Payschools program to obtain accurate counts. Cafeteria manager will go over the numbers before certifying for submission.

View Audit 403412

Finding 1217260 (2025-002)

Material Weakness 2025

Cabrini of Westchester

NY

Questioned Costs HUD Housing Programs Significant Deficiency

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for the Elderly Section 232 ALN Number: 14.129 Award Period: Year Ended December 31, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria ...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for the Elderly Section 232 ALN Number: 14.129 Award Period: Year Ended December 31, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: HUD requires a signed management fee agreement when such transactions take place. Condition: Unallowed related party transactions were identified in 2025. Context: Affiliate dues were booked to the Home's cash clearing account as a credit for $400,000 with the understanding that these fees would qualify as a service contract rather than a management fee. However, due to the cash infused into the program by The Carmelite System, the $400,000 will not be noted as questioned costs needing to be repaid into the project. Recommendation: The Home should adhere to the Regulatory Agreement and obtain HUD’s approval prior to taking any actions specifically precluded in the Regulatory Agreement. Action taken in response to finding: There is no disagreement with the audit finding. Management will work to obtain proper approval going forward. If the U.S. Department of Housing and Urban Development has questions regarding this schedule, please call Corrinne Schindler at 518-537-7500 or CSchindler@CarmeliteSystem.org.

View Audit 403406

Finding 1217259 (2025-001)

Material Weakness 2025

Cabrini of Westchester

NY

Questioned Costs HUD Housing Programs Material Weakness

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for the Elderly Section 232 ALN Number: 14.129 Award Period: Year Ended December 31, 2025 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or sp...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for the Elderly Section 232 ALN Number: 14.129 Award Period: Year Ended December 31, 2025 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Home was required to obtain written approval for the member substitution transaction with The Carmelite System, Inc. prior to closing. Condition: Membership transfer agreements must be in place and signed by HUD during the transition of Ownership / Governance. Context: Formal HUD approval was not obtained in relation the Member Substitution in which the Carmelite System, Inc. became the sole member and sponsor of the Home. Recommendation: The Home should adhere to the Regulatory Agreement and obtain HUD’s approval prior to taking any actions specifically precluded in the Regulatory Agreement. Action taken in response to finding: There is no disagreement with the audit finding. Management is working to obtain the necessary HUD approvals.

View Audit 403406

Finding 1217240 (2025-005)

Material Weakness 2025

Community Health Improvement Center, Inc. D/b/a Crossing Healthcare

IL

Questioned Costs Reporting Internal Control / Segregation of Duties § 200.329

Finding summary – The Organization’s annual UDS report was selected for testing. Of the ten inputs tested, four exceptions were noted as the Organization was unable to provide supporting documentation that agreed to the line items tested on the report. Corrective Action Planned - Management has enga...

Finding summary – The Organization’s annual UDS report was selected for testing. Of the ten inputs tested, four exceptions were noted as the Organization was unable to provide supporting documentation that agreed to the line items tested on the report. Corrective Action Planned - Management has engaged with an independent 3rd party accounting firm to review current processes, assist with strengthening internal controls and month-end/year-end closing procedures, and provide assistance in completing the Organization’s annual UDS report. Anticipated Completion Date – Completed 1/1/2026 Responsible Contact Person – Margret Guy, Director of Revenue; Julie Brilley, CEO Management Response - Management concurs with the auditor's finding. The Organization acknowledges that a mistake was made on Table 9E-Other Revenue, where grant income, from the Early Childhood Development (ECD) grant, was listed in the incorrect location. The ECD grant should have been listed under Federal Grants: UHI Grant Revenue. Additionally, the Organization’s UDS preparer, completed a transposition error when entering a salary amount in Table 8A.

View Audit 403385

Finding 1217233 (2025-004)

Material Weakness 2025

CITY OF DAYTON

MN

Questioned Costs Material Weakness Internal Control / Segregation of Duties

Community Project Funding (CFP) Program – Assistance Listing No. 14.251 Recommendation: We recommend the City ensure environmental review requirements are completed and documented prior to incurring any project-related expenditures for the Community Project Funding program. The City should continue ...

Community Project Funding (CFP) Program – Assistance Listing No. 14.251 Recommendation: We recommend the City ensure environmental review requirements are completed and documented prior to incurring any project-related expenditures for the Community Project Funding program. The City should continue to maintain procedures designed to prevent project activities from beginning before environmental review requirements are satisfied. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: City management noted that procedures have been implemented for this grant, including a memorandum of understanding that is annually reaffirmed by the City Council, to ensure environmental review requirements are completed prior to incurring project expenditures and to prevent similar occurrences in the future.. Name of the contact person responsible for corrective action: Zach Doug Planned completion date for corrective action plan: December 31, 2026

View Audit 403370

Corrective Action Plans

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