Corrective Action Plans

Finding 1228281 (2025-004)

Material Weakness 2025

MacOn-Bibb County

GA

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

2025 – 004 Airport Improvement Program (AIP) – Assistance Listing 20.106 – Reporting Name of Contact Person Responsible for Corrective Action Plan: Doug Faour, Airport Director Corrective Action Plan: Management will implement a process to ensure all required reports are submitted as required in a t...

2025 – 004 Airport Improvement Program (AIP) – Assistance Listing 20.106 – Reporting Name of Contact Person Responsible for Corrective Action Plan: Doug Faour, Airport Director Corrective Action Plan: Management will implement a process to ensure all required reports are submitted as required in a timely manner. Anticipated Completion Date: Fiscal year 2026

View Audit 410012

Finding 1228276 (2025-003)

Material Weakness 2025

MacOn-Bibb County

GA

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.328 § 200.329

2025 – 003 Community Development Block Grant (CDBG) – Assistance Listing 14.218 – Reporting Name of Contact Person Responsible for Corrective Action Plan: Wanzina Jackson, Economic and Community Development Director Corrective Action Plan: Management will implement a process to ensure all required r...

2025 – 003 Community Development Block Grant (CDBG) – Assistance Listing 14.218 – Reporting Name of Contact Person Responsible for Corrective Action Plan: Wanzina Jackson, Economic and Community Development Director Corrective Action Plan: Management will implement a process to ensure all required reports are submitted as required in a timely manner. Anticipated Completion Date: Fiscal year 2026

View Audit 410012

Finding 1228274 (2025-001)

Material Weakness 2025

Redevelopment Authority of Allegheny County

PA

Reporting Internal Control / Segregation of Duties

Financial Statement Finds: Accounting Records Criteria: The accounts of the Authority should include all significant transactions in the period of benefit. Condition: During the audit, certain audit adjustments were required to record transactions in the period of benefit for the General Fund, Speci...

Financial Statement Finds: Accounting Records Criteria: The accounts of the Authority should include all significant transactions in the period of benefit. Condition: During the audit, certain audit adjustments were required to record transactions in the period of benefit for the General Fund, Special Projects Fund, and EDF Fund. Effect: The financial records for the General Fund, Special Projects Fund, and EDF Fund did not reflect the financial activity in the period of benefit, which could result in a material misstatement of the financial statements. This is a repeat finding from a previous year – Finding 2024-001. Recommendation: The Authority should ensure that internal control procedures over financial reporting are sufficient to identify and record all transactions in the period of benefit. Management Response: The Authority has initiated additional levels of review in order to sufficiently identify and record all transactions in the period of benefit.

View Audit 410008

Finding 1228263 (2025-002)

Material Weakness 2025

Housing and Redevelopment Authority of Owatonna

MN

Eligibility Internal Control / Segregation of Duties Reporting

Recommendation: We recommend the HRA implement controls over all areas of the federal program so that segregation of duties are in place and working. Views of Responsible Officials: The HRA is aware of the limited segregation of duties as a result of our limited number of staffing. There is no disag...

Recommendation: We recommend the HRA implement controls over all areas of the federal program so that segregation of duties are in place and working. Views of Responsible Officials: The HRA is aware of the limited segregation of duties as a result of our limited number of staffing. There is no disagreement with the audit finding.

View Audit 410002

Finding 1228261 (2025-002)

Material Weakness 2025

Greater Seacoast Community Health

NH

Special Tests & Provisions Subrecipient Monitoring Reporting

Finding Number: 2025-002 Condition Found: Through testing a statistically valid sample of 25 individual patient balances, we identified four instances in which the sliding fee discount applied was inconsistent with the Organization's policy. Specifically, in two instances, sliding fee adjustments we...

Finding Number: 2025-002 Condition Found: Through testing a statistically valid sample of 25 individual patient balances, we identified four instances in which the sliding fee discount applied was inconsistent with the Organization's policy. Specifically, in two instances, sliding fee adjustments were applied based on individual procedure codes rather than the date of service. In one additional instance, an incorrect sliding fee adjustment was applied to the patient's balance. Collectively, these three errors resulted in patients being charged $311 more than required under the Organization's sliding fee discount program. We also identified one patient who received a sliding fee discount without an active sliding fee application for the applicable date of service and was therefore not eligible for the discount. Individual(s) Responsible for Corrective Action: Dean Correnti, CFO Planned Corrective Action: Sliding fee schedule is completed by the Dental Practice Manager on a case-by-case status. On a monthly basis, they are to be presented to the CFO for him to sign off on to verify all is correct. Any adjustments will be made quickly and correctly. The current policy for sliding fees has been updated, reviewed, and signed off by all parties involved. Anticipated Completion Date: Completed on March 1, 2026

View Audit 409999

Finding 1228228 (2025-002)

Material Weakness 2025

Hope Shines Bright Holding Company, Inc.

NV

Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.62

RESPONSES FOR HSB-HOLDING FY25 PROGRAM-SPECIFIC AUDIT 2025-001: Data Collection Form Submission Criteria: Non-federal entities that expend $1,000,000 or more in federal funds are required to submit Form SF-SAC and the program-specific audit reporting package online utilizing the Internet Data Entry ...

RESPONSES FOR HSB-HOLDING FY25 PROGRAM-SPECIFIC AUDIT 2025-001: Data Collection Form Submission Criteria: Non-federal entities that expend $1,000,000 or more in federal funds are required to submit Form SF-SAC and the program-specific audit reporting package online utilizing the Internet Data Entry System (IDES). The package must be uploaded by the earlier of nine months after the close of the fiscal year or 30 days after the audit report is received by the entity consistent with 2 CFR 200.512. Condition: The organization failed to timely submit the audited schedule of expenditures of federal awards to the Federal Audit Clearinghouse (FAC) database by the required due date related to the program-specific audit for fiscal year 2025. Cause: The organization's system of internal controls did not identify the need for a program specific audit which resulted in delay of the performance and finalization of the engagement. Effect: The organization's reporting package was not timely submitted to the FAC. Recommendation: We recommend management design and implement a system of internal controls whereby internal controls over compliance related to federal awards are understood, monitored, and implemented consistently throughout the fiscal year. Views of Responsible Officials and Planned Corrective Actions: St. Jude's Ranch for Children (the parent entity of HSB Holding Company) will conduct a comprehensive review of the flow of federal funds across affiliated entities to clearly identify which entities are direct recipients or subrecipients of awards to ensure proper identification of entities requiring a Single Audit. This includes documenting the source, amount, and purpose of federal funds received. Moving forward, this will be conducted upon execution of federal awards. SJRC will implement an internal review step in the year-end close process to evaluate whether a Single Audit is required based on federal expenditures. This will include a review of federal funding by entity and program. 2025-002: System of Internal Controls Over Compliance:Procurement, Suspension,and Debarment; U.S. Department of Treasury, Assis tance Listing #21.027, Coronavirus State and Local Fiscal Recovery Funds, Passed Through St. Jude's Ranch for Children, Boulder City Campus Criteria: In accordance with 2 CFR 200.62(a)(3), the auditee must maintain a system of internal control over compliance to provide reasonable assurance that expenditures under federal award programs adhere to procurement standards as outlined in 2 CFR Part 200, Subpart D. Condition: The organization did not adhere to the procurementstandards as required under 2 CFR Part 200, Subpart D, and/or the written purchasing and procurement policy. Context: On July 15, 2022, the organization entered into a construction contract to construct a capital asset. Subsequently, on June 24, 2024, the organization was awarded funding through the Coronavirus State and Local Fiscal Recovery Fund to construct said capital asset. As the capital project construction contract was executed prior to the federal award being received, the organization did not adhere to the procurement standards as required under 2 CFR Part 200, Subpart D, and/or the written purchasing and procurementpolicy. These construction contracts finalized in October 2024 which is prior to the identification of the finding for internal control over procurement, suspension, and debarment on the Single Audit for the year ended June 30, 2024 and therefore remained an internal control deficiency for the year ended June 30, 2025. Effect: Lack of adherence to procurement standards as outlined in 2 CFR Part 200, Subpart D, could result in contractual liabilities incurred by the organization that are related to suspended, debarred, or otherwise unauthorized contractors. Cause: Upon receipt of the federal award intended to fund the capital project, the organization did not appropriately consider the potential remedial action(s) needed as related to adherence to 2 CFR Part 200, Subpart D. Recommendation: We recommend management design and implement a system of internal controls over compliance whereby procurement standards are adhered to for all expenditures requested for reimbursement under federal award programs. Views of Responsible Officials and Planned Corrective Actions: The CFO, Accounting Manager and/or outsourced accountant will review all contracts involving federal funds prior to execution to verify adherence to 2 CFR Part 200, Subpart D. Given the unique nature of the contract in question being executed prior to the awarding of federal funds but subsequently using the federal funds to cover expenditures related to the contract, St. Jude's Ranch for Children (the parent entity of HSB Holding Company) does not anticipate a similar scenario in the future. However, SJRC will meet with legal counsel to review existing boilerplate contracts and incorporate a 2 CFR Part 200, Subpart D compliance clause for use in any contracts with the potential to be funded by federal awards. Training will be provided to SJRC finance and program staff, led by legal counsel, covering: (i) contract negotiation basics; (ii) federal clauses that are non-negotiable (e.g., 2 CFR 200 provisions); and (iii) when legal review is required. PRIOR YEAR (FY24) STATUS AND UPDATED RESPONSES 2024-001 Data Collection Form Submission Unresolved - see 2025-001. 2024-002 System of Internal Controls Over Compliance: Activities Allowed and Unallowed, Allowable Costs/Cost Principles, and Period of Performance; U.S. Department of Treasury, Assistance Listing #21.027, Coronavirus State and Local Fiscal Recovery Funds, Passed Through St. Jude's Ranch for Children, Boulder City Campus Resolved. 2024-003: System of Internal Controls Over Compliance: Procurement, Suspension, and Debarment; U.S. Department of Treasury, Assistance Listing #21.027, Coronavirus State and Local Fiscal Recovery Funds, Passed Through St. Jude's Ranch for Children, Boulder City Campus Unresolved - see 2025-002. Responsible Official: David Caldwell Chief Financial Officer dcaldwell@stjudesranch.org

View Audit 409979

Finding 1228227 (2025-001)

Material Weakness 2025

Council of Community Services

WY

Internal Control / Segregation of Duties Subrecipient Monitoring

Segregation of Duties Condition/Context-Council staff have limited segregation of duties for all transactions of the entity. The Council's staff is not large enough to permit adequate segregation of duties. This lack of segregation of duties does not allow management to detect and correct a material...

Segregation of Duties Condition/Context-Council staff have limited segregation of duties for all transactions of the entity. The Council's staff is not large enough to permit adequate segregation of duties. This lack of segregation of duties does not allow management to detect and correct a material misstatement, if present. Due to the size of the Council's staff, it is anticipated that this will be an ongoing finding. Compensating controls are in place; however, this continues to be an ongoing finding. Recommendation-In our judgment, management and those charged with governance need to understand the importance of this communication. However, due to the lack of resources available to management to correct this weakness, we recommend that management mitigate this weakness with possible compensating controls such as close supervision and monitoring by management and the Board of Directors. Corrective Action Planned- The Council of Community Services has a full-time bookkeeper with adequate experience, continues to have Board involvement, and actively seeks new Board members with financial expertise. We also have a board member who is a Certified Public Accountant that also sits on the Finance Committee of the Board. This additional oversight adds layers of supervision and monitoring which should allow any intentional fraud or unintentional errors to be prevented and detected and corrected in a timely manner. Contact-Mikel Scott, Executive Director Anticipated Completion Date-Due to the size of the staff, this is expected to be an ongoing finding, all compensating controls have been in place since 2015.

View Audit 409973

Finding 1228225 (2025-002)

Material Weakness 2025

City of Nicholasville, Kentucky

KY

Internal Control / Segregation of Duties Reporting § 200.512

Management will review and strengthen the year-end financial reporting process to improve the timeliness of the audit and financial statement preparation. The City will work with its auditors to establish and monitor reporting deadlines and will evaluate staffing and training needs to help ensure co...

Management will review and strengthen the year-end financial reporting process to improve the timeliness of the audit and financial statement preparation. The City will work with its auditors to establish and monitor reporting deadlines and will evaluate staffing and training needs to help ensure compliance with the filing requirements of 2 CFR 200.512(a) in future periods.

View Audit 409971

Finding 1228224 (2025-001)

Material Weakness 2025

City of Nicholasville, Kentucky

KY

Internal Control / Segregation of Duties Reporting

Management will review and strengthen the year-end financial reporting process to improve the timeliness of the audit and financial statement preparation. The City will work with its auditors to establish and monitor reporting deadlines and will evaluate staffing and training needs to help ensure co...

Management will review and strengthen the year-end financial reporting process to improve the timeliness of the audit and financial statement preparation. The City will work with its auditors to establish and monitor reporting deadlines and will evaluate staffing and training needs to help ensure compliance with the reporting requirements of KRS 91A.040 in future periods.

View Audit 409971

Finding 1228222 (2025-002)

Material Weakness 2025

George J. and Hilda Meyer Foundation, Inc.

MO

Internal Control / Segregation of Duties Significant Deficiency Matching / Level of Effort / Earmarking

U.S. Department of Agriculture Communities Facilities Loans & Grants – Assistance Listing Number 10.766 Recommendation: We recommend the Foundation design controls to ensure that calculations are completed in accordance with the loan agreement and funding in full prior to the end of each fiscal year...

U.S. Department of Agriculture Communities Facilities Loans & Grants – Assistance Listing Number 10.766 Recommendation: We recommend the Foundation design controls to ensure that calculations are completed in accordance with the loan agreement and funding in full prior to the end of each fiscal year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: A waiver of the funding requirement was obtained for the year ended August 31, 2025. Management will incorporate the funding calculation for the Replacement and Extension Account into the reconciliations to be performed and reevaluated monthly. Name(s) of the contact person(s) responsible for corrective action: Tiffany Meinershagen Planned completion date for corrective action plan: August 31, 2026

View Audit 409968

Finding 1228219 (2025-001)

Material Weakness 2025

Transform 1012 N. Main Street

TX

Reporting Significant Deficiency Internal Control / Segregation of Duties

Cause of Internal Control Issue: Transform 1012's grant reporting procedures included a verbal approval of reports and therefore, management approval could not be confirmed or reperformed. The effect of this is that bi-annual reporting was not fully documented in accordance with internal control pro...

Cause of Internal Control Issue: Transform 1012's grant reporting procedures included a verbal approval of reports and therefore, management approval could not be confirmed or reperformed. The effect of this is that bi-annual reporting was not fully documented in accordance with internal control procedures over compliance. Actions To Rectify Internal Control Issue: Management's Response: Carlos Gonzalez-Jaime, Executive Director, will ensure his written documentation of review and approval of all grant reports is kept on file by using electronic signature to indicate review and approval and storing signed copies of the documentation. • This will be completed by October 31, 2025, for 2025 reports through October 31, 2025. Going forward, signed documentation will be stored within seven days of the report being issued.

View Audit 409953

Finding 1228100 (2025-002)

Material Weakness 2025

Managed Career Solutions Spc

CA

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

Reference Number: 2025-002. Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds. Assistance Listing Number: 21.027. Federal Agency: U.S. Department of the Treasury. Pass-Through Entity: City of Los Angeles, Economic and Workforce Development Department (EWDD). Federal Award Numb...

Reference Number: 2025-002. Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds. Assistance Listing Number: 21.027. Federal Agency: U.S. Department of the Treasury. Pass-Through Entity: City of Los Angeles, Economic and Workforce Development Department (EWDD). Federal Award Number and Year: C-145793; FY 2025. Category of Finding: Reporting. Management acknowledges that one (1) monthly fiscal report submitted to the City of Los Angeles, EWDD, was not submitted on or before the fifteenth (15th) day of the following month. The management will ensure that the Accounting Department will strengthen its report submission process by working closely with the City of Los Angeles, EWDD to help finalize the contracts efficiently and be able to submitthe monthly fiscal reports by the 15th of the following month, in accordance with the contract. Anticipated Completion Date: March 16, 2026 Tito Maturan, Director of Finance and Technology (213) 355-5300

View Audit 409918

Finding 1228099 (2025-001)

Material Weakness 2025

Managed Career Solutions Spc

CA

Reporting Internal Control / Segregation of Duties

Reference Number: 2025-001 Federal Program Title: National Dislocated Worker Grant Program. Assistance Listing Number: 17.277 Federal Agency: U.S. Department of Labor, Employee and Training Administration. Pass-Through Entity: City of Los Angeles, Economic and Workforce Development Department (EWDD)...

Reference Number: 2025-001 Federal Program Title: National Dislocated Worker Grant Program. Assistance Listing Number: 17.277 Federal Agency: U.S. Department of Labor, Employee and Training Administration. Pass-Through Entity: City of Los Angeles, Economic and Workforce Development Department (EWDD). Federal Award Number and Year: C-200956; FY2025. Category of Finding: Reporting. Management acknowledges that one (1) monthly fiscal report submitted to the City of Los Angeles, EWDD, was not submitted on or before the fifteenth (15th) day of the following month. The management will ensure that the Accounting Department will strengthen its report submission process by working closely with the City of Los Angeles, EWDD to help finalize the contracts efficiently and be able to submit the monthly fiscal reports by the 15th of the following month, in accordance with the contract. Anticipated Completion Date: March 16, 2026 Tito Maturan, Director of Finance and Technology (213) 355-5300

View Audit 409918

Finding 1228098 (2025-003)

Material Weakness 2025

Golden Harvest Food Bank, Inc.

GA

Special Tests & Provisions School Nutrition Programs Significant Deficiency

Finding 2025-003 Recommendation: We recommend original records relating to the requirements for receipted foods be retained for the required period. Corrective Action: Documentation was previously being filed in hard copy. Efforts have been made to now have all documents scanned into the Operations ...

Finding 2025-003 Recommendation: We recommend original records relating to the requirements for receipted foods be retained for the required period. Corrective Action: Documentation was previously being filed in hard copy. Efforts have been made to now have all documents scanned into the Operations Receipts Teams fo lder at receipt and are confirmed in Teams by designated members of the Operations management team. Person Responsible for Corrective Action: Norman Stafford, VP of Operations Anticipated Completion Date for Corrective Action: 8/14/26

View Audit 409917

Finding 1228094 (2025-002)

Material Weakness 2025

Golden Harvest Food Bank, Inc.

GA

Special Tests & Provisions School Nutrition Programs Significant Deficiency

Finding 2025-002 Recommendation: We recommend controls be strengthened to ensure all donations are supported with verification of count, weight, product identification, and other inspection of the product as evidenced through signature of the person(s) receiving inventory items. This could be made t...

Finding 2025-002 Recommendation: We recommend controls be strengthened to ensure all donations are supported with verification of count, weight, product identification, and other inspection of the product as evidenced through signature of the person(s) receiving inventory items. This could be made through a checklist attached to the bill of lading and used with entering the items into the inventory system that includes verification was properly made and items properly set up in inventory. Corrective Action: A majority ofTEFAP orders arrive with a BOL that will have the USDA secondary 5000 PO number as well as a 4000 Customer sales number and many times a 2000 Solicitation number. These are requirements t he USDA has with the vendors supplying the items. We report both the 5000 and 4000 numbers to GA OHS/SC Dept of Ag upon receipt of the goods. If either or both numbers are missing from the BOL, we note that in t he receipt report sent to these agencies. These numbers, although unique to USDA product, are not the only designation we use for TEFAP loads. We can access the TEFAP Requisition Status Report that indicates items that we have ordered and the status such as approved and delivery period. By contract the vendors/delivery brokers are required to give us a 48-hour notice prior to delivery. Moving forward, we will attach the TEFAP report sent to the respective state agencies in the event that either the 4000 or 5000 number is not on the BOL to the required retention paperwork for audit purposes. Person Responsible for Corrective Action: Norman Stafford, VP of Operations Anticipated Completion Date for Corrective Action: 8/14/26

View Audit 409917

Finding 1227928 (2025-002)

Material Weakness 2025

Community Partners for Affordable Housing

OR

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding # 2025-002: Type: Significant deficiency in internal controls over financial reporting Finding: Audit procedures identified certain year-end cutoff adjustments related to grant revenue and predevelopment costs. The adjustments related to timing differences identified during the year-end clos...

Finding # 2025-002: Type: Significant deficiency in internal controls over financial reporting Finding: Audit procedures identified certain year-end cutoff adjustments related to grant revenue and predevelopment costs. The adjustments related to timing differences identified during the year-end close process, including grant revenue earned in 2025 that was recorded when cash was received in 2026 and certain 2025 predevelopment costs that were not accrued at year-end. Corrective Action: Management will strengthen year-end accrual procedures, particularly for grant revenues and housing development activities, and will include review of significant subsequent receipts and disbursements to help ensure grant revenue and housing development activities are recorded in the proper period. Anticipated Completion Date: December 2026

View Audit 409847

Finding 1227927 (2025-001)

Material Weakness 2025

Community Partners for Affordable Housing

OR

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding # 2025-001: Type: Significant deficiency in internal controls over financial reporting Finding: Audit procedures identified a land acquisition financed through a promissory note that was not recorded when the transaction occurred. The matter related to a significant noncash real estate devel...

Finding # 2025-001: Type: Significant deficiency in internal controls over financial reporting Finding: Audit procedures identified a land acquisition financed through a promissory note that was not recorded when the transaction occurred. The matter related to a significant noncash real estate development transaction that was nonroutine and did not involve a typical cash disbursement through the normal accounts payable process. Corrective Action: Management implemented procedures to identify and evaluate significant nonroutine transactions. These include early communication with finance through regular meetings and pipeline and work-in-process updates, implemented in November 2025, and a monthly close procedure for nonrecurring transactions, implemented in August 2026. Anticipated Completion Date: November 2025 and August 2026

View Audit 409847

Finding 1227926 (2025-001)

Material Weakness 2025

Purdy R-II School District

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN November 18, 2025 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF HEALTH AND HUMAN SERVICES Purdy School District R-II respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective a...

CORRECTIVE ACTION PLAN November 18, 2025 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF HEALTH AND HUMAN SERVICES Purdy School District R-II respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Dr Travis Graham, Superintendent Purdy School District R-II 201 Gabby Gibbons Dr Purdy, MO 65734 (417) 442-3215 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2025 The findings from the June 30, 2025, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2025-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr Travis Graham, Superintendent Purdy School District R-II

View Audit 409841

Finding 1227801 (2025-002)

Material Weakness 2025

Village of Blanchardville

WI

Material Weakness Reporting Internal Control / Segregation of Duties

Finding #2025-002- Material Adjustments Condition: Johnson Block and Company, Inc. proposed adjusting journal entries during the audit process. We deem these entries to be material in relation to the financial statements. Since the Village did not make these adjustments in its accounting system prio...

Finding #2025-002- Material Adjustments Condition: Johnson Block and Company, Inc. proposed adjusting journal entries during the audit process. We deem these entries to be material in relation to the financial statements. Since the Village did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the Village’s internal controls. Criteria: Material adjusting journal entries not prepared by the Village before the audit are considered an internal control weakness. Cause: The Village does not have policies and procedures in place to ensure that all transactions are properly recorded on the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The Village will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor. Contact Person: Katherine Drake, Village Clerk/Treasurer, 608-523-4521, clerk@blanchardvillewi.gov Anticipated Completion: December 31, 2026

View Audit 409774

Finding 1227800 (2025-001)

Material Weakness 2025

Village of Blanchardville

WI

Internal Control / Segregation of Duties HUD Housing Programs

Finding #2025-001- Segregation of Duties Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional error...

Finding #2025-001- Segregation of Duties Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or can both make and conceal an error, whether such error is intentional or unintentional. Cause: Limited number of personnel. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities because of the lack of segregation of duties. Recommendation: We recommend that the Village consider the benefits of implementing additional policies and procedures to address key controls related to its significant transaction cycles as noted. Response: We agree with the finding but do not believe it is cost-effective to increase the office staff in an attempt to bring about a more effective segregation of duties. Contact Person: Katherine Drake, Village Clerk/Treasurer, 608-523-4521, clerk@blanchardvillewi.gov Anticipated Completion: Not Applicable

View Audit 409774

Finding 1227773 (2025-005)

Material Weakness 2025

City of Merced

CA

Special Tests & Provisions Subrecipient Monitoring Material Weakness

Program: HOME Investment Partnerships Program Federal Financial Assistance Listing Number: 14.239 Federal Grantor: U.S. Department of Housing and Urban Development Award Number and Year: M16-MC060227; M17-MC060227; M20-MC060227; M21-MC060227; M23- MC060227; M24-MC060227 Compliance Requirement: Speci...

Program: HOME Investment Partnerships Program Federal Financial Assistance Listing Number: 14.239 Federal Grantor: U.S. Department of Housing and Urban Development Award Number and Year: M16-MC060227; M17-MC060227; M20-MC060227; M21-MC060227; M23- MC060227; M24-MC060227 Compliance Requirement: Special Tests and Provisions – HQS Enforcement Management’s Response: We concur. Views of Responsible Officials and Corrective Action: The City’s Housing Division are aware of HUD’s requirement to have written policies and procedures in place for each HUD formula grant funding source (CDBG & HOME), including environmental reviews, financial management, uniform relocation assistance, and lead paint abatement. The barriers to carrying out rental housing monitoring activities have largely been centered around: 1) lack of sufficient number of staff to perform all job tasks, including training and monitoring and, 2) insufficient training information and opportunities on the subject of rental housing monitoring, including how to properly calculate restricted rent amounts and tenant income. As part of the Five-Year Consolidated Plan implementation creation and adoption of Policies and Procedures to perform this work was identified. Name of Responsible Person: Director of Development Services – currently vacant Housing Program Supervisor - Kimberly Nutt Projected Implementation Date: The consultant assisting the City has prepared a Draft of the Policies and Procedures which are currently being reviewed. We anticipate final approval and implementation by end of January 2027.

View Audit 409753

Finding 1227757 (2025-101)

Material Weakness 2025

Pancare of Florida, INC

FL

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs § 200.303

2025-101 Lack of Effective Internal Controls over the Application of the Sliding Fee Scale Condition: The Organization lacks consistently applied processes and procedures related to the application of the sliding fee scale. The Organization’s current review process related to the sliding fee scale t...

2025-101 Lack of Effective Internal Controls over the Application of the Sliding Fee Scale Condition: The Organization lacks consistently applied processes and procedures related to the application of the sliding fee scale. The Organization’s current review process related to the sliding fee scale to identify errors quickly to allow for corrections to be made in a timely manner does not always detect all errors. We also noted: • Sliding fee scales were not used for the agreement that the Organization has in place with the local school district in which they provide services to students. The agreement specifically does not allow the Organization to obtain information related to household size and income as needed to appropriately place the family on the sliding fee scale. The agreement also indicates no amounts can be collected from the students, except when that student has insurance which allows the Organization to bill the insurance company for a portion of the fees. • Sliding fee scales are not used in the disaster recovery bus program that does not charge the patients for services. Corrective Action Planned: The Organization has hired a new Chief Financial Officer and a new Revenue Cycle Manager. Sliding fee discount program training has been incorporated into onboarding for all new front desk employees. The billing department is adding a Patient Accounts Specialist who will monitor and review individual sliding fee determinations for accuracy and completeness and will conduct ongoing training with front desk staff as needed. Additionally, management will perform quarterly random sample testing of sliding fee determinations to verify that household size, income documentation, and discount tier were applied in accordance with the Organization's sliding fee discount policy. With respect to the school district agreement and the bus program, management will contact HRSA to request written guidance or a waiver confirming that the sliding fee discount schedule is not required to be applied to these programs. Management will also amend the Organization's sliding fee discount policies and procedures accordingly and will remove the word "disaster" from references to the bus program, as the program is not limited to disaster-related services. Person Responsible for Corrective Action: Tonya Nicholson, Chief Financial Officer Anticipated Completion Date: October 2026

View Audit 409740

Finding 1227752 (2025-003)

Material Weakness 2025

Villa Maria College of Buffalo

NY

Student Financial Aid Subrecipient Monitoring Reporting

AUDIT FINDING REFERENCE NUMBER: 2025-003 FEDERAL AGENCY: Department of Education FEDERAL PROGRAM: Student Financial Assistance Cluster - NSLDS reporting AWARD YEAR: 2024-2025 CONDITION: {REFER TO AUDIT REPORT EXPLANATION) CORRECTIVE ACTION PLAN: The College experienced turnover and process change in...

AUDIT FINDING REFERENCE NUMBER: 2025-003 FEDERAL AGENCY: Department of Education FEDERAL PROGRAM: Student Financial Assistance Cluster - NSLDS reporting AWARD YEAR: 2024-2025 CONDITION: {REFER TO AUDIT REPORT EXPLANATION) CORRECTIVE ACTION PLAN: The College experienced turnover and process change in the Registrar area during the audited year. The Registrar's office has formalized processes and enhanced communication with other departments since the year in question. The procedures currently being followed should prevent enrollment status change reporting from being out of compliance. ANTICIPATED COMPLETION DATE: Immediately CONTACT PERSON: Aimee Murch MurchA@villa.edu

View Audit 409730

Finding 1227750 (2025-006)

Material Weakness 2025

Aids Outreach Center

TX

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

Effective June 2025, the Organization hired a Director of Finance to strengthen financial management, enhance internal controls, and improve oversight of financial reporting and federal grant compliance. Management corrected the grant coding and updated the applicable expense codes to ensure transpo...

Effective June 2025, the Organization hired a Director of Finance to strengthen financial management, enhance internal controls, and improve oversight of financial reporting and federal grant compliance. Management corrected the grant coding and updated the applicable expense codes to ensure transportation-related costs are charged to the appropriate account. Finance staff now verify grant coding before expenditures are posted and reimbursement requests are submitted. The Director of Finance performs monthly reviews of grant expenditures to identify and correct coding errors before reimbursement requests are finalized.

View Audit 409729

Finding 1227749 (2025-005)

Material Weakness 2025

Aids Outreach Center

TX

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

Effective June 2025, the Organization hired a Director of Finance to strengthen financial management, enhance internal controls, and improve oversight of financial reporting and federal grant compliance. Management has reinforced supervisory approval requirements for employee timesheets, implemented...

Effective June 2025, the Organization hired a Director of Finance to strengthen financial management, enhance internal controls, and improve oversight of financial reporting and federal grant compliance. Management has reinforced supervisory approval requirements for employee timesheets, implemented periodic compliance reviews, and established monitoring procedures to ensure payroll documentation is complete before costs are charged to federal awards.

View Audit 409729

Corrective Action Plans

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