Corrective Action Plans

Finding 1173044 (2025-001)

Material Weakness 2025

J.f. Drake State Community and Technical College

AL

Student Financial Aid Eligibility Reporting

Management’s Response: Management understands the importance of ensuring information is reported accurately and timely and the requirement to report to the NSLDS the enrollment status of students who receive federal funds. The College will review its policies and procedures to ensure that not only a...

Management’s Response: Management understands the importance of ensuring information is reported accurately and timely and the requirement to report to the NSLDS the enrollment status of students who receive federal funds. The College will review its policies and procedures to ensure that not only are status changes reported to the Clearinghouse, but also that the enrollment changes are reported appropriately from the National Student Clearinghouse to NSLDS. Views of Responsible Officials and Corrective Action: We will reassess controls, review these processes and implement controls, including multiple layers of review, to ensure that timely and accurate enrollment reporting is made. Furthermore, the reporting data was appropriately updated subsequent to the required timeframe. Name of Responsible Person: Jennifer O’Linger, Director of Student Financial Aid Implementation Date: Immediately

View Audit 386504

Finding 1173041 (2025-002)

Material Weakness 2025

Louisiana Housing Corporation

LA

Reporting Internal Control / Segregation of Duties

The Corporation hired a new Chief Financial Officer on September 29, 2025, and a review of staffing, procedures, and training has started. The accounting division is currently operating at two-thirds of its full staffing due to retirements and other personnel actions. The Chief Financial Officer is ...

The Corporation hired a new Chief Financial Officer on September 29, 2025, and a review of staffing, procedures, and training has started. The accounting division is currently operating at two-thirds of its full staffing due to retirements and other personnel actions. The Chief Financial Officer is presently assessing its staffing needs and working to fill priority open positions. Due to evolving operational demands and budgetary considerations, a definitive timeframe to hire staff has not been established; however, we hope to be fully staffed within the next fiscal year.

View Audit 386470

Finding 1173000 (2025-003)

Material Weakness 2025

Cloverdale Community School Corporation

IN

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

FINDING 2025-003 Finding Subject: Education Stabilization Fund – Internal Controls Contact Person Responsible for Corrective Action: Mendy Shrout Contact Phone Number and Email Address): (765) 795-4664 / mshrout@cloverdale.k12.in.us Views of Responsible Officials: We concur with the finding. Descrip...

FINDING 2025-003 Finding Subject: Education Stabilization Fund – Internal Controls Contact Person Responsible for Corrective Action: Mendy Shrout Contact Phone Number and Email Address): (765) 795-4664 / mshrout@cloverdale.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Corporation Treasurer will review and initial payroll distribution report as reviewed. Anticipated Completion Date: February 1, 2026

View Audit 386450

Finding 1172993 (2025-001)

Material Weakness 2025

Cloverdale Community School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

FINDING 2025-001 Finding Subject: Child Nutrition Cluster – Internal Controls Contact Person(s) Responsible for Corrective Action: Mendy Shrout & Billy Boyette Contact Phone Number and Email Address(es): (765) 795-4664 / mshrout@cloverdale.k12.in.us & bboyette@cloverdale.k12.in.us Views of Responsib...

FINDING 2025-001 Finding Subject: Child Nutrition Cluster – Internal Controls Contact Person(s) Responsible for Corrective Action: Mendy Shrout & Billy Boyette Contact Phone Number and Email Address(es): (765) 795-4664 / mshrout@cloverdale.k12.in.us & bboyette@cloverdale.k12.in.us Views of Responsible Officials: Option 1: We concur with the finding. Description of Corrective Action Plan: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Payroll distribution reports will be periodically reviewed and initialed by the Corporation Treasurer to assure employees paid are working in the cafeteria. Eligibility Cafeteria Managers will initially enter eligibility information into the POS (Harmony). The Food Service Director or Café Office Manager will sign off on the reports as records are entered. Reporting Food Service Director will provide the reports to the Corporation Treasurer or the Café Office Manager on a monthly basis for review. The reviewer will then initial the documents. Anticipated Completion Date: February 1, 2026

View Audit 386450

Finding 1172985 (2025-003)

Material Weakness 2025

Metropolitan School District of Decatur Township

IN

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.1 § 200.208 § 200.303 § 200.332 § 200.339

FINDING 2025-003 Finding Subject: Teacher and School Leader Incentive Grants – Subrecipient Monitoring Contact Person Responsible for Corrective Action: Chris Gearlds, Assistant Superintendent Contact Phone Number and Email Address: (317) 856-5265; cgearlds@decaturproud.org Views of Responsible Offi...

FINDING 2025-003 Finding Subject: Teacher and School Leader Incentive Grants – Subrecipient Monitoring Contact Person Responsible for Corrective Action: Chris Gearlds, Assistant Superintendent Contact Phone Number and Email Address: (317) 856-5265; cgearlds@decaturproud.org Views of Responsible Official: We concur with Audit Finding Description of Corrective Action Plan: The Teacher and School Leader Incentive Grant was completed during the audit period and the school district does not plan on receiving this award in the future. Therefore, further corrective action is not required and district officials will utilize this information to ensure compliance in other federal awards. Anticipated Completion Date: February 1, 2026

View Audit 386440

Finding 1172978 (2025-001)

Material Weakness 2025

Salvaging Teens at Risk, Inc. Dba North Texas Collegiate Academy

TX

Cash Management Reporting School Nutrition Programs

Background and Context: The District has a long-standing history of strong financial compliance and has not previously received audit findings related to internal controls or reporting. The error was isolated, not systemic, and was identified without evidence of intentional misreporting or ongoing r...

Background and Context: The District has a long-standing history of strong financial compliance and has not previously received audit findings related to internal controls or reporting. The error was isolated, not systemic, and was identified without evidence of intentional misreporting or ongoing risk. The District has implemented additional review steps as identified below to ensure continued accuracy in future submissions. Subject: Finding 2025-001: The finding indicates 2 errors were made in transferring data from the Daily Accuclaim Report to the Monthly Record of Meals Served at the East Campus resulting in an inaccurate request for reimbursement in the amount of approximately $55.00; these errors were made in 2 separate monthly reports during the 2025 fiscal year. Management response to FY 2025-001 Audit Findings The management of the Organization acknowledges the need for stronger internal controls in the administration of the Child Nutrition Meal Reimbursement Task Cluster. The agency implemented refresher training with the Administrative Assistant and the Campus Principal at the East Campus. Training was completed on November 18, 2025. Additionally, the agency has implemented stringent internal controls to ensure that all data regarding meal counts and reimbursement claims will be verified to ensure accuracy. It was noted that this weakness resulted in errors when the Administrative Assistant transferred data from the Daily Accuclaim to the Monthly Record of Meals Served. To prevent any errors in future claims, the following Standard Operating Procedure for all campuses was created: 1. The Administrative Assistant will tabulate meals served and enter daily totals on the Daily Accuclaim Report. The Campus Principal will provide a second count for daily totals and verify that the correct total was entered on the Daily Accuclaim Report. Both the Administrative Assistant and the Campus Principal will initial the Daily Accuclaim Report when verifications have been completed. 2. Data from the Daily Accuclaim Report will be transferred to the Monthly Record of Meals Served. Both the Administrative Assistant and the Campus Principal will verify that data has been correctly transferred and totaled accurately. Both the Administrative Assistant and the Campus Principal will initial the Monthly Record of Meals Served. 3. At the end of each month, Weekly Student Rosters, Daily Accuclaim Reports and the Monthly Record of Meals Served will be forwarded to the Director of Child Nutrition who will verify and initial all reports and enter data in TXUNPS for reimbursement. When all data for the month has been entered, a Summary Report will be printed and submitted to the Superintendent along with all documents for review and approval. Upon Superintendent written approval, the CNP Director will submit requests for reimbursement through TXUNPS. The agency will implement these Standard Operating Procedures beginning with the December 2025, Reimbursement Claim. It is believed that procedures requiring two personnel to review and sign off on all daily and monthly data and before final submission will ensure accuracy in Reimbursement Claims.

View Audit 386430

Finding 1172973 (2025-002)

Material Weakness 2025

Des Moines Area Metropolitan Planning Organization

IA

Reporting Internal Control / Segregation of Duties

Management acknowledges the finding related to year-end receivables and payables. The adjustment noted is related to a limited number of invoices received after fiscal year-end for services performed prior to June 30. Management will continue to refine year-end closing procedures and coordinate with...

Management acknowledges the finding related to year-end receivables and payables. The adjustment noted is related to a limited number of invoices received after fiscal year-end for services performed prior to June 30. Management will continue to refine year-end closing procedures and coordinate with its accounting consultant and independent auditors to ensure receivables and payables are identified and recorded in the appropriate fiscal period.

View Audit 386417

Finding 1172972 (2025-001)

Material Weakness 2025

Des Moines Area Metropolitan Planning Organization

IA

Reporting Internal Control / Segregation of Duties

Management acknowledges the finding related to year-end receivables and payables. The adjustment noted is related to a limited number of invoices received after fiscal year-end for services performed prior to June 30. Management will continue to refine year-end closing procedures and coordinate with...

Management acknowledges the finding related to year-end receivables and payables. The adjustment noted is related to a limited number of invoices received after fiscal year-end for services performed prior to June 30. Management will continue to refine year-end closing procedures and coordinate with its accounting consultant and independent auditors to ensure receivables and payables are identified and recorded in the appropriate fiscal period.

View Audit 386417

Finding 1172967 (2025-001)

Material Weakness 2025

Gordon-Rushville Public Schools

NE

Reporting Internal Control / Segregation of Duties

The District understands the inherent risks associated with lack of segregation of accounting functions. The District requires monthly reporting to the Board of Education and the District Superintendent to ensure transactions are recorded, and potential errors and irregularities are identified on a ...

The District understands the inherent risks associated with lack of segregation of accounting functions. The District requires monthly reporting to the Board of Education and the District Superintendent to ensure transactions are recorded, and potential errors and irregularities are identified on a timely basis. The District has implemented procedures to limit the existence of, and mitigate risks associated with, nonsegregated accounting functions. The District has assessed the benefits and costs associated with additional requirements necessary to assure proper segregation of duties and has determined that cost would outweigh any benefits received.

View Audit 386409

Finding 1172939 (2025-002)

Material Weakness 2025

Midwest Central Community Unit School District No. 191

IL

Internal Control / Segregation of Duties Cash Management Reporting § 200.303

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (business manager) compares the meal counts in the claim to the SDS daily meal ...

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (business manager) compares the meal counts in the claim to the SDS daily meal count reports, monthly participation summary, eligibility rosters (free, reduced, paid) and USDA reimbursement rates. The reviewer will then sign and date a reconciliation sheet before submission. Anticipated date of completion: June 30, 2026. Name of contact person: Todd Hellrigel, Superintendent. Management response: The corrective action plan was discussed with the employee responsible for filing the claim, the business manager, and the superintendent. After discussion, the plan was approved by the superintendent.

View Audit 386322

Finding 1172932 (2025-001)

Material Weakness 2025

CONVERSE COUNTY AIRPORT

WY

Subrecipient Monitoring Internal Control / Segregation of Duties

ALTHOUGH THE ACCOUNTING STAFF IS TOO SMALL TO PROVIDE FOR ADEQUATE SEGREGATION OF DUTIES, THERE ARE EFFECTIVE COMPENSATING CONTROLS IN PLACE. PHYSICAL CONTROL OF DOCUMENTS AND CONTROL OF CHECK SIGNATURE AUTHORITY ARE TWO EXAMPLES OF MEASURES USED TO COMPENSATE FOR THE SEGREGATION ISSUE. VOUCHERS ALL...

ALTHOUGH THE ACCOUNTING STAFF IS TOO SMALL TO PROVIDE FOR ADEQUATE SEGREGATION OF DUTIES, THERE ARE EFFECTIVE COMPENSATING CONTROLS IN PLACE. PHYSICAL CONTROL OF DOCUMENTS AND CONTROL OF CHECK SIGNATURE AUTHORITY ARE TWO EXAMPLES OF MEASURES USED TO COMPENSATE FOR THE SEGREGATION ISSUE. VOUCHERS ALL REQUIRE MANAGEMENT APPROVAL, AS WELL AS INVOICES PROCESSED FOR PAYMENT. ON A MONTHLY BASIS, EXPENDITURES ARE REVIEWED BY THE BOARD AND AIRPORT MANAGER, AND BANK STATEMENTS ARE RECONCILED AND REVIEWED. THESE CONTROLS PROVIDE ADEQUATE AND EFFECTIVE SAFEGUARDS TO COMPENSATE FOR THE LACK OF SEGREGATION OF RESPONSIBILITIES IN THE ACCOUNTING DEPARTMENT. STEVE GOOD, AIRPORT MANAGER, IS ABLE TO PROVIDE INFORMATION ON THE STATUS OF THIS CORRECTIVE ACTION.

View Audit 386317

Finding 1172867 (2025-001)

Material Weakness 2025

Atwood Elder Housing, Inc.

MA

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Atwood Elder Housing, Inc. respectfully submits the following corrective action plan for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: November 1, 2024 - October 31, 2025 The finding fr...

Atwood Elder Housing, Inc. respectfully submits the following corrective action plan for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: November 1, 2024 - October 31, 2025 The finding from the October 31, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings - Federal Award Findings and Questioned Costs Finding 2025-001 - Eligibility - Significant Deficiency Recommendation: Management should review its internal controls over performing tenant recertification procedures to ensure compliance with eligibility requirements. Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility is done in accordance with guidelines specified by federal regulations. Action Taken: Management agrees with the assessment and resulting finding. Corrective actions have been implemented to strengthen compliance controls, including calendar reminders for compliance team members, enhanced documentation in recertification checklists to clarify specific program requirements, and routine review of compliance expectations during monthly staff training and meetings. Management has also increased supervisory oversight and implemented periodic internal file audits to monitor adherence to recertification procedures and prevent future occurrences.

View Audit 386273

Finding 1172866 (2025-001)

Material Weakness 2025

Northwestern College

IA

Student Financial Aid Reporting Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the College re-evaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explan...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the College re-evaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Early in the 2024-25 fiscal year, the College learned that this finding related to manually reported graduates and withdrawn students. Graduates reported during the automated file submittal process were reported as graduating at end of term, while graduates reported manually were reported as graduating on the College’s actual commencement date (one day different than end of term). The Registrar is now consistent in reporting graduation dates using the end of term for all graduating students. As for the reporting of withdrawals, the Registrar now manually updates the enrollment status and effective dates in NSLDS to ensure accurate and timely reporting. The findings in this audit period occurred prior to the above changes being implemented. Name(s) of the contact person(s) responsible for corrective action: Austin Nyhof, Registrar Planned completion date for corrective action plan: June 30, 2026

View Audit 386256

Finding 1172846 (2025-001)

Material Weakness 2025

Stark County Community Unit School No. 100

IL

Internal Control / Segregation of Duties Cash Management Reporting § 200.303

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (superintendent) compares the meal counts in the claim to the SDS daily meal co...

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (superintendent) compares the meal counts in the claim to the SDS daily meal count reports, monthly participation summary, eligibility rosters (free, reduced, paid) and USDA reimbursement rates. The reviewer will then sign and date a reconciliation sheet before submission. Anticipated date of completion: June 30, 2026. Name of contact person: Brett Elliott, Superintendent. Management response: The corrective action plan was discussed with the employee responsible for filing the claim, the business manager, and the superintendent. After discussion, the plan was approved by the superintendent.

View Audit 386204

Finding 1172838 (2025-001)

Material Weakness 2025

Catholic Charities Community Services, Inc. and Subsidiaries

AZ

Material Weakness Reporting Internal Control / Segregation of Duties

Item: 2025-001 Assistance Listing Number: 64.024 Program: VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Agencies: n/a Contract/Pass-Through Grantor Identifying Number: CCAZ999-4582-649-TP-24 Award Year: October 2021 to September 202...

Item: 2025-001 Assistance Listing Number: 64.024 Program: VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Agencies: n/a Contract/Pass-Through Grantor Identifying Number: CCAZ999-4582-649-TP-24 Award Year: October 2021 to September 2023; October 2023 to September 2026 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit per diem financial reports requesting payment based on the units of service provided multiplied by a per diem rate as specified in the grant agreement. Condition: In preparation of the per diem financial reports, the incorrect per diem rate was used to calculate the amount requested for payment for three reports. Phone Number: (602) 650-4852 Anticipated Completion Date: March 31, 2026 Views of Responsible Officials and Corrective Actions: The Organization has implement additional controls to ensure updates to the per diem rates are identified timely. The Organization will continue to ensure reports are reviewed and approved prior to submission to the granting agency. This review and approval will be clearly documented.

View Audit 386180

Finding 1172836 (2025-002)

Material Weakness 2025

Catholic Charities Community Services, Inc. and Subsidiaries

AZ

Material Weakness Reporting Internal Control / Segregation of Duties

Item: 2025-002 Assistance Listing Number: 93.558 Program: Temporary Assistance for Needy Families Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Economic Security Contract/Pass-Through Grantor Identifying Number: CTR062282 Award Year: July 2...

Item: 2025-002 Assistance Listing Number: 93.558 Program: Temporary Assistance for Needy Families Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Economic Security Contract/Pass-Through Grantor Identifying Number: CTR062282 Award Year: July 2024 to June 2025 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit monthly performance reports. Condition: Of the 22 reports tested, 11 were not submitted timely. Phone Number: (602) 650-4852 Anticipated Completion Date: March 31, 2026 Views of Responsible Officials and Corrective Actions: The Organization has implemented additional controls to ensure reports are submitted timely. The Organization will continue to ensure reports are reviewed and approved prior to submission to the granting agency.

View Audit 386180

Finding 1172831 (2025-002)

Material Weakness 2025

Michigan Women's Foundation D/b/a Michigan Women Forward

MI

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

Condition The internal controls over compliance were not operating effectively as a loan was disbursed to a business which operates outside of the approved county listing set by the SBA. Corrective Action Plan Corrective Action Planned: The Foundation had 26 approved counties across the lower half o...

Condition The internal controls over compliance were not operating effectively as a loan was disbursed to a business which operates outside of the approved county listing set by the SBA. Corrective Action Plan Corrective Action Planned: The Foundation had 26 approved counties across the lower half of Michigan for businesses eligible to be funded by SBA loan capital. MWF assigned SBA funding to an applicant that was initially identified as being in an eligible county. However, by the time of the loan closing, the applicant had settled on a brick and mortar store located in a county that is not on MWF’s SBA approved list. MWF has created a procedure for loans assigned to SBA as the loan capital funding source to verify before closing that the county for the business is in an SBA approved county. The Foundation has also received approval from the SBA to fund loans for business in the previously unapproved county subsequent to year end. Name(s) of Contact Person(s) Responsible for Corrective Action: Tamara Jackson, the director of lending, will verify all loans assigned to SBA loan capital prior to closing the county of the business and confirm it is an eligible county for MWF Anticipated Completion Date: The procedure described above was created, MWF’s credit policy and MWF’s closing checklist reflect this procedure which was implemented in the first quarter of FY2026.

View Audit 386159

Finding 1172828 (2025-001)

Material Weakness 2025

Belvidere Cusd No. 100

IL

Internal Control / Segregation of Duties Cash Management Reporting § 200.303

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (chief financial & operations officer) compares the meal counts in the claim to...

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (chief financial & operations officer) compares the meal counts in the claim to the Skyward daily meal count reports, monthly participation summary, eligibility rosters (free, reduced, paid) and USDA reimbursement rates. The reviewer will then sign and date a reconciliation sheet before submission. Anticipated date of completion: December 7, 2025. Name of contact person: Cassandra Schug, Superintendent. Management response: The corrective action plan was discussed with the business services coordinator and the chief financial & operations officer. After discussion, the plan was approved.

View Audit 386144

Finding 1172804 (2025-001)

Material Weakness 2025

Housing Authority of Hopkinsville

KY

HUD Housing Programs Internal Control / Segregation of Duties

The non-compliance resulted primarily from operational and system limitations rather than the absence of policy or guidance. The PHA had inspection procedures and documentation expectations in place and communicated to inspection staff; however, the inspection software that we use, Tenmast, currentl...

The non-compliance resulted primarily from operational and system limitations rather than the absence of policy or guidance. The PHA had inspection procedures and documentation expectations in place and communicated to inspection staff; however, the inspection software that we use, Tenmast, currently does not adequately support printing, retention, tracking and follow-up of former HQS inspection documentation and present NSPIRE documentation, reinspection deadlines or enforcement actions. As HUD oversight expectations increased and NSPIRE requirements were implemented, reliance on manual tracking and workarounds created a risk of incomplete documentation and delayed follow-up. While inspections were conducted as required, system constraints limited the PHA's ability to consistently document failed items, record actual passing dates and initiate timely enforcement actions, including HAP abatement. To further strengthen compliance and address these risks, the PHA updated its Administrative Plan effective July 1, 2025, to more clearly define NSPIRE compliance standards, documentation requirements, reinspection timelines, enforcement procedures and abatement actions. STEPS TO IMPROVE: 1. Reinforce NSPIRE inspection procedures previously issued to inspectors, including documentation, notification, reinspection and enforcement requirements. 2. Implement refresher training for inspection staff to ensure consistent application of HUD and PHA NSPIRE policies, including life-threatening and non-life-threatening deficiencies. 3. Require retention of complete HUD-52580 inspection reports for all failed and passed inspections, including accurate documentation of deficiency correction dates. 4. 4. Strengthen review of inspection files to ensure timely follow-up, reinspection scheduling and enforcement actions by the Section 8 Director. 5. Transition inspection tracking and compliance enforcement from our current software company, Ten mast, to a new software company, Yardi, to improve system controls, documentation retention and monitoring capabilities. This implementation should occur in 2026. 6. Apply the updated Administrative Plan effective July 1, 2025, to ensure consistent enforcement of HAP abatement and contract termination requirements. Effective December 1, 2024, the PHA began utilizing NSPIRE to support a more modernized inspection system. Existing landlords were formally notified of the new inspection and enforcement requirements on September 1, 2024. The Section 8 Director will conduct periodic supervisory file reviews to verify that inspection notices, HUD- 52580 reports, reinspection documentation and enforcement actions are properly maintained and timely. The PHA is currently in the process of implementing Yardi as its primary inspection and case-management system. Once fully operational, Yardi will provide enhanced capabilities for tracking failed inspections, monitoring reinspection deadlines, documenting compliance and enforcing HAP abatement in accordance with HUD and NSPIRE requirements. Management will utilize system-generated reports and ongoing internal reviews to identify and promptly address compliance issues. The Section 8 Director acknowledges the deficiencies identified and is committed to strengthening NSPIRE enforcement through improved system controls, clarified policy, staff training and ongoing monitoring. These corrective actions are intended to ensure program integrity, protect tenant safety and maintain compliance with HUD regulations. Additional Remarks: Under our finding, the finding was reported for HOS Enforcement. Our agency changed to the NSPIRE Protocol for inspections as of 12/1/2024. Out of the 25 failed inspections sampled, 7 fell under the previous HQS protocol and the other 18, NSPIRE

View Audit 386135

Finding 1172802 (2025-004)

Material Weakness 2025

Independent School District #2909, Rock Ridge Public Schools

MN

Internal Control / Segregation of Duties Cash Management Reporting

Contact Person – Dr. Noel Schmidt, Superintendent Corrective Action Plan – The District will establish procedures to review meal reimbursement submissions. Completion Date – January 31, 2026

View Audit 386106

Finding 1172772 (2025-006)

Material Weakness 2025

Carlyle Community Unit School Dist. #1

IL

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

Condition: Costs included on the 6/30/25 2025 Title I ISBE expenditure report included costs paid after 6/30/25. Recommendation: We recommend implementing an additional process to reconcile the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submissio...

Condition: Costs included on the 6/30/25 2025 Title I ISBE expenditure report included costs paid after 6/30/25. Recommendation: We recommend implementing an additional process to reconcile the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submission of ISBE grant reports. Management Response: The District will consider implementing an additional reconciliation process and will take necessary steps to review expenditures in the general ledger against expenditures reported to ISBE. Anticipated Date of Completion: June 30, 2026

View Audit 386055

Finding 1172771 (2025-005)

Material Weakness 2025

Carlyle Community Unit School Dist. #1

IL

Reporting Internal Control / Segregation of Duties

Condition: The final 2024 Title I grant report at 8/31/24 includes an expenditure that should have been claimed in the first report. Recommendation: We recommend implementing an additional reconciliation process in grant reporting that compares the budgeted cost of items to the amount recorded in th...

Condition: The final 2024 Title I grant report at 8/31/24 includes an expenditure that should have been claimed in the first report. Recommendation: We recommend implementing an additional reconciliation process in grant reporting that compares the budgeted cost of items to the amount recorded in the general ledger against the grant reports before submission. Management Response: The District will take the necessary steps to review expenditure reports to ensure they capture expenses within the appropriate quarterly report. Anticipated Date of Completion: June 30, 2026

View Audit 386055

Finding 1172770 (2025-004)

Material Weakness 2025

Carlyle Community Unit School Dist. #1

IL

Allowable Costs / Cost Principles Cash Management Reporting

Condition: The District submitted budgeted expenditures for reimbursement instead of actual expenditures in Title I, Grant Year 2024. Questioned costs of $5,448. Recommendation: We recommend reconciling the budgeted amount to the general ledger totals and reconciling those to expenditure reports bef...

Condition: The District submitted budgeted expenditures for reimbursement instead of actual expenditures in Title I, Grant Year 2024. Questioned costs of $5,448. Recommendation: We recommend reconciling the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submitting. Management Response: The District will take necessary steps to review the budgeted cost of items and the amount recorded in the general ledger against the expenditure reports before submitting the final grant reports. Anticipated Date of Completion: June 30, 2026

View Audit 386055

Finding 1172738 (2025-003)

Material Weakness 2025

Southeast Iowa Regional Housing Authority

IA

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

HQS inspections will be documented in each tenant’s file in accordance with applicable standards, along with the corresponding inspection log maintained by the PHA. Any required reinspection will also be completed and documented accordingly in the tenant’s file.

View Audit 386037

Finding 1172737 (2025-001)

Material Weakness 2025

City of Charleston, West Virginia

WV

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.1 § 200.303

Finding 2025-001 Reporting Federal Agency- U.S. Department of the Treasury Program Name - Coronavirus State and Local Fiscal Recovery Funds (SLFRF} Federal Assistance Listing Number: 21.027 2 CFR 200.303 requires that a non-federal entity must "(a) establish and maintain effective internal control o...

Finding 2025-001 Reporting Federal Agency- U.S. Department of the Treasury Program Name - Coronavirus State and Local Fiscal Recovery Funds (SLFRF} Federal Assistance Listing Number: 21.027 2 CFR 200.303 requires that a non-federal entity must "(a) establish and maintain effective internal control over the 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 be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States and the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)." The terms and conditions of the funding require the recipient to submit quarterly Project and Expenditure Reports to the U.S. Department of the Treasury {Treasury). Information required to be included in these quarterly reports includes projects funded, expenditures, obligations, and other information. Treasury's Coronavirus State and Local Fiscal Recovery Guidance requires that "Reporting must be consistent with the definition of expenditures pursuant to 2 CFR 200.1." Responsible Officials: The City of Charleston utilizes an outside agency to compile and submit the required quarterly reports to the Department of Treasury for the State and Local Fiscal Recovery Funds. City officials provide the details of the projects funded, expenditures, obligations, and all other required information to the outside agency, who will then compile and submit the report. Upon review of prior period reports, City officials discovered that the expenditure amount for one of the projects was less than the amount provided to the outside agency for the report. The City brought this to the attention of the outside agency, then increased the project expenditures of the report in question so that the project to-date.

View Audit 386032

Corrective Action Plans

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