Corrective Action Plans

Finding 1229268 (2025-002)

Material Weakness 2025

Housing Authority of the City of Athens, Alabama

AL

Significant Deficiency Internal Control / Segregation of Duties

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

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

View Audit 410746

Finding 1229267 (2025-001)

Material Weakness 2025

Housing Authority of the City of Athens, Alabama

AL

Cash Management HUD Housing Programs Material Weakness

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

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

View Audit 410746

Finding 1229249 (2025-009)

Material Weakness 2025

Urshan College

MO

Eligibility Reporting Significant Deficiency § 200.303

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

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

View Audit 410734

Finding 1229247 (2025-007)

Material Weakness 2025

Urshan College

MO

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

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

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

View Audit 410734

Finding 1229245 (2025-005)

Material Weakness 2025

Urshan College

MO

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency § 200.303

2025-005 Federal Direct Student Loans – Assistance Listing No. 84.268 Federal Pell Grant Program – Assistance Listing No. 84.063 Recommendation: We recommend that the University review the GLBA requirements and ensure their WISP includes all required elements. Explanation of disagreement with audit ...

2025-005 Federal Direct Student Loans – Assistance Listing No. 84.268 Federal Pell Grant Program – Assistance Listing No. 84.063 Recommendation: We recommend that the University review the GLBA requirements and ensure their WISP includes all required elements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University has completed a comprehensive review and revision of its Written Information Security Program (WISP) to ensure alignment with all applicable requirements under the Gramm-Leach-Bliley Act (GLBA). While these updates were finalized after the end of FY25, the revised WISP now includes all required elements. The University has also received confirmation from the U.S. Department of Education’s Cybersecurity Compliance team that the updated program meets minimum GLBA compliance requirements. Moving forward, the University will maintain and periodically review its WISP to ensure ongoing compliance with federal standards. Name(s) of the contact person(s) responsible for corrective action: Dewayne Presson & Keith Braswell | Urshan IT Department Planned completion date for corrective action plan: 3/31/2026

View Audit 410734

Finding 1229244 (2025-004)

Material Weakness 2025

Urshan College

MO

Special Tests & Provisions Student Financial Aid Significant Deficiency § 200.303

2025-004 Federal Direct Student Loans – Assistance Listing No. 84.268 Federal Pell Grant Program – Assistance Listing No. 84.063 Recommendation: We recommend that the University review policies and procedures related to R2T4 calculations to ensure calculations are performed accurately. Explanation o...

2025-004 Federal Direct Student Loans – Assistance Listing No. 84.268 Federal Pell Grant Program – Assistance Listing No. 84.063 Recommendation: We recommend that the University review policies and procedures related to R2T4 calculations to ensure calculations are performed accurately. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Urshan has partnered with FA Solutions, an experienced third-party processor. Through this partnership, we have strengthened our processes and implemented additional checks and balances to ensure that R2T4 determinations are identified, calculated, and processed in a timely and compliant manner. Name(s) of the contact person(s) responsible for corrective action: Levi Powell, Director of Financial Aid Planned completion date for corrective action plan: 3/31/2026

View Audit 410734

Finding 1229231 (2025-003)

Material Weakness 2025

City of South Bend

IN

Internal Control / Segregation of Duties Special Tests & Provisions Subrecipient Monitoring § 200.303

Finding 2025-003 Information on the federal program: Subject: Home Investment Partnerships Program – Internal Controls Federal Agency: Department of Housing and Urban Development Federal Program: Home Investment Partnerships Program Assistance Listing Number: 14.239 Pass-Through Entity: N/A - Direct...

Finding 2025-003 Information on the federal program: Subject: Home Investment Partnerships Program – Internal Controls Federal Agency: Department of Housing and Urban Development Federal Program: Home Investment Partnerships Program Assistance Listing Number: 14.239 Pass-Through Entity: N/A - Direct Grant Compliance Requirement: Special Tests and Provisions - Underwriting Requirements Audit Findings: Significant Deficiency Condition: The Consortium did not have a documented review control in place to ensure the underwriting calculation was prepared and calculated accurately. There was no documented proof of segregation of duties. Context: In a sample of two, one selection was noted where the underwriting calculation did not have evidence of preparer or reviewer. The selected underwriting calculation was prepared in April 2025. The Consortium implemented a control process in September 2025. The second sample tested had proper review and was completed in September 2025. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Management will implement a system of internal controls to ensure the required underwriting calculations are prepared, reviewed, and maintained. Responsible Party and Timeline for Completion: The Consortium Director (or their designee) and the Federal Grant Administrator are responsible for implementation. The Consortium has implemented additional controls effective September 2025.

View Audit 410728

Finding 1229227 (2025-002)

Material Weakness 2025

City of South Bend

IN

Internal Control / Segregation of Duties Special Tests & Provisions Subrecipient Monitoring § 200.303

Finding 2025-002 Information on the federal program: Subject: Home Investment Partnerships Program – Internal Controls Federal Agency: Department of Housing and Urban Development Federal Program: Home Investment Partnerships Program Assistance Listing Number: 14.239 Pass-Through Entity: N/A - Direct...

Finding 2025-002 Information on the federal program: Subject: Home Investment Partnerships Program – Internal Controls Federal Agency: Department of Housing and Urban Development Federal Program: Home Investment Partnerships Program Assistance Listing Number: 14.239 Pass-Through Entity: N/A - Direct Grant Compliance Requirement: Special Tests and Provisions – Maximum Per Unit Subsidy Audit Findings: Material Weakness Condition: The Consortium did not have a documented review control in place to ensure the per-unit subsidy calculation was prepared and calculated accurately. There was no documented proof of segregation of duties. Context: In a sample of two, the following instances were noted: • For the first selection, the per-unit subsidy information was entered into the HUD system (IDIS) during the project close out. There is no evidence of segregation of duties over the preparation and review of IDIS inputs. • For the second selection, the calculation was prepared by a former employee in 2025 and did not have sign off by the preparer or reviewer. A secondary review with evidence of sign off was performed subsequent to the audit period in 2026. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Management will implement a system of internal controls to ensure the required per unit subsidy calculations are prepared, reviewed, and maintained. Responsible Party and Timeline for Completion: The Consortium Director (or their designee) and the Federal Grant Administrator are responsible for implementation. The Consortium has implemented additional controls effective September 2026.

View Audit 410728

Finding 1229223 (2025-002)

Material Weakness 2025

Addiction Services Council

OH

Allowable Costs / Cost Principles Cash Management Significant Deficiency

Planned Corrective Action: Management acknowledges the finding. The Council currently maintains comprehensive fiscal policies and procedures governing its financial operations and internal controls. Management will review its existing policies against the applicable Uniform Guidance requirements ide...

Planned Corrective Action: Management acknowledges the finding. The Council currently maintains comprehensive fiscal policies and procedures governing its financial operations and internal controls. Management will review its existing policies against the applicable Uniform Guidance requirements identified during the audit and, where necessary, supplement or clarify existing policies to expressly document federal award requirements. Any necessary revisions will be incorporated into the Council’s existing fiscal policy framework. The Council will review its existing fiscal policies and procedures against applicable Uniform Guidance requirements. Existing policies will be supplemented or clarified, where necessary, to expressly address federal award administration requirements identified during the audit, including allowable costs, cash management, procurement, and conflicts of interest. The Council will incorporate any necessary revisions into its existing fiscal policy framework and maintain the policies as part of its ongoing compliance processes. Anticipated Completion Date: December 31, 2026

View Audit 410726

Finding 1229215 (2025-001)

Material Weakness 2025

Housing Authority of the City of Vancouver

WA

Subrecipient Monitoring HUD Housing Programs Reporting

Federal Award Agency: Department of Housing and Urban Development Name of Contact Person: Jennifer Carter, Voucher Programs Director Corrective Action: In order to ensure all units are properly scheduled for inspection within the required period; Vancouver Housing Authority will continue to pull mon...

Federal Award Agency: Department of Housing and Urban Development Name of Contact Person: Jennifer Carter, Voucher Programs Director Corrective Action: In order to ensure all units are properly scheduled for inspection within the required period; Vancouver Housing Authority will continue to pull monthly reports for inspections due. VHA will continue to schedule inspections for tenant-based voucher households every 18 months to ensure we meet the two-year period and will continue to run reports for “missed” inspections that do not have a completed inspection within the expected time period. VHA staff have implemented additional reporting to review the assigned inspection schedule on active units at least annually. VHA has updated internal compliance process to review inspection and unit specific requirements during a PBV to tenant-based property conversion. Date of Planned Corrective Action: The above process has been completed.

View Audit 410719

Finding 1229210 (2025-003)

Material Weakness 2025

Centerplace Health, Inc.

FL

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.512

FINDING 2025-003 – LATE REPORTING Due to turnover in the CFO and CEO roles, there was delay in the compiling of records related to the audit. CPH has strengthened internal controls by hiring a contract CFO and controller as well as a senior accountant on staff. These roles will ensure compliance wit...

FINDING 2025-003 – LATE REPORTING Due to turnover in the CFO and CEO roles, there was delay in the compiling of records related to the audit. CPH has strengthened internal controls by hiring a contract CFO and controller as well as a senior accountant on staff. These roles will ensure compliance with Uniform Guidance audit reporting by implementing procedures to track submission deadlines, assigning responsibility for timely filing of the audit report and FAC Data Collection Form, and establishing management review processes to ensure compliance with Uniform Guidance reporting requirements.

View Audit 410699

Finding 1229179 (2025-003)

Material Weakness 2025

Rebuilding Together Northeast Ohio, Inc.

OH

Material Weakness Reporting Internal Control / Segregation of Duties

Policies and procedures for review of quarterly financial and performance reports will be followed on a consistent basis.

View Audit 410687

Finding 1229178 (2025-002)

Material Weakness 2025

Rebuilding Together Northeast Ohio, Inc.

OH

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties

Policies and procedures for review of payroll will be followed on a consistent basis.

View Audit 410687

Finding 1229177 (2025-001)

Material Weakness 2025

The Bedford Stuyvesant Family Health Center, Inc.

NY

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.302

The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 - Cash Management - U.S. Department of Agri...

The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 - Cash Management - U.S. Department of Agriculture ({Assistance Listing Number 10.557, WIC Special Supplemental Nutrition Program for Women, Infants, and Children} Passed Through New York State Department of Health, Contract Number C38291GG - (Significant Deficiency) SJGNFICANT DEFICIENCY During our audit, we noted that there is no evidence of review of WIC vouchers submitted for payments. Recommendation We recommend that the Center implement a policy that requires all WIC voucher and supporting records to be reviewed and that such review be documented. Action Taken WIC vouchers and supporting documentation were reviewed and approved in accordance with BSFHC's established policy. However, the reviews were not documented, resulting in insufficient evidence to demonstrate that the required review had been performed. Going forward, Management will ensure that all WIC vouchers and supporting documentation are reviewed and that the review is documented through the reviewer's signature or initials. Management will monitor compliance with this requirement to ensure that documentation ofthe review is consistently maintained.

View Audit 410683

Finding 1229128 (2025-004)

Material Weakness 2025

Unified Community Services

WI

Internal Control / Segregation of Duties

Finding 2025-004 Repeat Finding 2024-003 AL No.: 21.027 Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Treasury Award Number/Year: 1505-0271 / 2021 Criteria: The Uniform Guidance requires that local entities receiving federal awards estab...

Finding 2025-004 Repeat Finding 2024-003 AL No.: 21.027 Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Treasury Award Number/Year: 1505-0271 / 2021 Criteria: The Uniform Guidance requires that local entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance further requires auditors to obtain an understanding of the local entity's internal control over federal programs. To minimize the risk offerors, internal controls should be in place for all program compliance requirements, including the approval of expenditures by a knowledgeable individual. Condition/Context: The County does not have controls in place to ensure there is documentation of the approval/review of reports prior to submission. The reports selected for testing did not have documentation of review and/or approval. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to document their review of the reports before submission and to ensure the reports were submitted timely. Questioned Costs: None noted. Effect: Reports could contain errors due to the lack of review and/or funding could be reduced as a result of not submitting reports by the due dates. Recommendation: The County should review its internal control procedures to ensure there is a process for documentation of proper review and approval over completeness and accuracy of reports are in place before submissions are completed. Corrective Action Planned: The Finance Department continues to work on the development of the Grant Manager module of Tyler MUNIS. In 2026 it was communicated with the Department Heads as to their responsibility to review each filing for completeness and accuracy before filing. Individual responsible: Angela Runde, Finance Director Anticipated completion date: Dec. 31, 2026

View Audit 410635

Finding 1229075 (2025-003)

Material Weakness 2025

CITY OF STEWART

MN

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Condition: During our audit, we proposed numerous adjustments that resulted in significant changes to the City's financial statements. Actions Planned in Response to Finding: The City will continue to review internal controls and work to design modifications that will increase internal control and t...

Condition: During our audit, we proposed numerous adjustments that resulted in significant changes to the City's financial statements. Actions Planned in Response to Finding: The City will continue to review internal controls and work to design modifications that will increase internal control and the ability to detect material misstatements. Officer Responsible for Ensuring CAP: Kimberly Block, Clerk/Treasurer Planned Completion Date: Not Applicable

View Audit 410531

Finding 1229074 (2025-002)

Material Weakness 2025

CITY OF STEWART

MN

Reporting Internal Control / Segregation of Duties

Condition: The City relies upon the auditor to prepare the financial statements an related disclosures in accordance with GAAP. Actions Planned in Response to Finding: The City will continue to review auditor prepared financial statements with the intention of understanding and accepting responsibil...

Condition: The City relies upon the auditor to prepare the financial statements an related disclosures in accordance with GAAP. Actions Planned in Response to Finding: The City will continue to review auditor prepared financial statements with the intention of understanding and accepting responsibility for reporting under GAAP. Officer Responsible for Ensuring CAP: Kimberly Block, Clerk/Treasurer Planned Completion Date: Not Applicable

View Audit 410531

Finding 1229073 (2025-001)

Material Weakness 2025

CITY OF STEWART

MN

Internal Control / Segregation of Duties

Condition: Due to the limited size of the City's staff, the City has limited segregation of duties. Actions Planned in Response to Finding: The City reviews and makes improvements to its internal controls on an ongoing basis and attempts to maximize the segregation of duties in all areas within the ...

Condition: Due to the limited size of the City's staff, the City has limited segregation of duties. Actions Planned in Response to Finding: The City reviews and makes improvements to its internal controls on an ongoing basis and attempts to maximize the segregation of duties in all areas within the limits of the staff available. Officer Responsible for Ensuring CAP: Mayor and Council Planned Completion Date: Not Applicable

View Audit 410531

Finding 1229060 (2025-003)

Material Weakness 2025

The Housing Authority of the City of Hastings, Nebraska

NE

Material Weakness Internal Control / Segregation of Duties

See response to Finding 2025-001.

View Audit 410529

Finding 1229054 (2025-002)

Material Weakness 2025

Town of Bolton

CT

Procurement, Suspension & Debarment Period of Performance Reporting

Finding Reference Number: 2025-002 – Internal Control over Compliance in Relation to Period of Performance Requirements Description of Finding: This is a new finding. For four of the seven projects reported under the Federal Program COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (SLFRF...

Finding Reference Number: 2025-002 – Internal Control over Compliance in Relation to Period of Performance Requirements Description of Finding: This is a new finding. For four of the seven projects reported under the Federal Program COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (SLFRF), totaling $204,862, documentation that the signed and accepted quote was sent back to the vendor by the program obligation deadline of December 31,2024 could not be located. Statement of Concurrence or Nonconcurrence: Nonconcur. Corrective Action: For each of these projects, fully detailed quotes incorporating specific scopes of work, pricing, and binding terms and conditions were executed (signed) by authorized Town officials on or before the December 31, 2024 obligation deadline. Additionally, work or deliverables were performed in accordance with these signed terms without dispute from either party, further proving mutual intent and the existence of a binding agreement. the existence of a binding agreement.

View Audit 410524

Finding 1229053 (2025-001)

Material Weakness 2025

Town of Bolton

CT

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding Reference Number: 2025-001 – Internal Control over Compliance in Relation to Reporting Requirements Description of Finding: This is a new finding. For one of the seven projects reported under the Federal Program COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (SLFRF), the total ...

Finding Reference Number: 2025-001 – Internal Control over Compliance in Relation to Reporting Requirements Description of Finding: This is a new finding. For one of the seven projects reported under the Federal Program COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (SLFRF), the total cumulative expenditures did not match the current period expenditures. The total cumulative expenditures reported were $295,205, but the current period expenditures reported were $264,767, a difference of $30,438 Statement of Concurrence or Nonconcurrence: Partially Concur. Corrective Action: Our preliminary review indicates the discrepancy stems from the prior administration’s specific methodology and interpretation of reporting requirements, rather than a substantive reporting error. The report in question covered the period of January 2025-March 2025. The expenditures totaling $30,438 were related to Q4 2024, and documentation indicates it was the previous administration’s intention to capture the current period expenditures (Q1 2025) versus the full fiscal year. To eliminate confusion, the Finance Department is establishing a formalized Standard Operating Procedure (SOP) that outlines the reporting requirements for these projects. Projected Completion Date: December 31, 2026

View Audit 410524

Finding 1229050 (2025-003)

Material Weakness 2025

Douglas County

IL

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Insufficient Grant Monitoring The County will work to improve grant documentation and will consider implementing a review process to ensure the grant records agree to the grant reports that are filed.

View Audit 410512

Finding 1229049 (2025-001)

Material Weakness 2025

Partnership Community Health Center, Inc.

WI

Internal Control / Segregation of Duties Subrecipient Monitoring Eligibility

Corrective Action Plan: To address the documentation deficiency related to the application of internal controls for sliding fee scale eligibility determinations, Partnership Community Health Center will reinforce and monitor the following ongoing practices: 1. Staff Training: Ongoing and refresher t...

Corrective Action Plan: To address the documentation deficiency related to the application of internal controls for sliding fee scale eligibility determinations, Partnership Community Health Center will reinforce and monitor the following ongoing practices: 1. Staff Training: Ongoing and refresher training is provided to all staff responsible for processing sliding fee scale applications. Training emphasizes the importance of documenting each step in the eligibility review and approval process. 2. Checklist Utilization: Staff continue to use the established checklist for each sliding fee scale application, ensuring all required steps in the eligibility review and approval process are documented, initialed, and dated. 3. Weekly Audits: Patient Services and Outreach Managers conduct regular weekly audits of a sample of sliding fee scale applications to verify that documentation of internal control procedures is consistently maintained. Any identified issues are addressed promptly with targeted corrective actions as needed. 4. Ongoing Monitoring: Results of the weekly audits are reviewed during monthly compliance meetings to ensure that corrective actions are implemented and sustained. Additional Context: This was an isolated case involving a staff member who was in training at the time of the incident and is no longer with the organization. All current staff have completed required training, and ongoing refresher sessions are in place to prevent recurrence. Person(s) Responsible: • Patient Services and Outreach Managers (for weekly checklist oversight, audits, and corrective actions) • Compliance Officer • CFO and PCHC Billing Timing for Implementation: • These practices are ongoing. Continued monitoring and reinforcement will ensure sustained compliance.

View Audit 410508

Finding 1229047 (2025-001)

Material Weakness 2025

Child and Parent Services, Inc.

IN

Significant Deficiency Internal Control / Segregation of Duties § 200.303

Child and Parent Services, Inc. Corrective Action Plan Audit year ended: December 31, 2025 Federal Agency: Department of Health and Human Services Federal Program: Temporary Assistance for Needy Families ALN: 93.558 Federal Award Numbers and Years: 46329; October 1, 2020 – September 30, 2026 Name an...

Child and Parent Services, Inc. Corrective Action Plan Audit year ended: December 31, 2025 Federal Agency: Department of Health and Human Services Federal Program: Temporary Assistance for Needy Families ALN: 93.558 Federal Award Numbers and Years: 46329; October 1, 2020 – September 30, 2026 Name and address of independent public accounting firm: Kruggel, Lawton & Company, LLC 317 W. Franklin St Elkhart, IN 46517 Description of Finding: Finding #: 2025-001 Out of a sample of 40 home visit notes, one lacked written evidence of supervisor approval. The grant is billed per family served based on completing various activities, including home visits. Under 2 CFR 200.303, the Organization is required to establish, document and maintain a system of effective internal control over federal awards to ensure that home visits occur and that the grant is billed only for families receiving services. Program supervisors failed to follow internal procedures to timely document review of home visits performed. The Organization could bill the grant without verification that a home visit occurred. We recommend that qualified personnel review the record of home visits within 30 days so that evidence of the approval is captured before lockdown occurs. Corrective Action Plan: Internal controls were immediately adjusted to ensure that supervisors review and document approval on each home visit prior to the lockdown date in the system. Supervisors will continue to meet weekly with each home visitor where they discuss each family being served and all activities that have taken place. The program will implement training for supervisors by August 31, 2026 to ensure that visit notes are approved within 45 days of the visit date and that a note is added in the system if the review is done after the 30-day lockdown period. Additionally, procedures will be implemented by August 31, 2026 for the Program Director to review a report of home visits lacking supervisor approval each month. The Program Director will follow up with the supervisors to resolve any unapproved visits identified in the monthly report. Member of management responsible for corrective action plan: Chief Financial Officer

View Audit 410499

Finding 1229010 (2025-001)

Material Weakness 2025

Talbot County Board of Education

GA

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting § 200.303 § 200.403 § 200.430

FA 2025-001 Strengthen Controls over Expenditures Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Questioned Costs: Repeat of Prior Year Finding: Description: Activities Allow...

FA 2025-001 Strengthen Controls over Expenditures Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Questioned Costs: Repeat of Prior Year Finding: Description: Activities Allowed or Unallowed Allowable Costs/Cost Principals Material Weakness Material Noncompliance U.S. Department of Education Georgia Department of Education 84.010 - Title I Grants to Local Educational Agencies S010A230010 (Year: 2024), S010A240010 (Year: 2025) $127,026.07 FA 2024-001, FA 2023-001, FA 2022-001 The policies and procedures of the School District were insufficient to provide adequate internal controls over expenditures as it related to the Title I Grants to Local Educational Agencies program. Corrective Action Plans: • The CFO will make sure that the voucher packets are properly prepared before the final steps. The packets must include approved requisition forms with school admin level approval, secondary approval from federal director if federal funds are used, and a completed purchase order signed by superintendent. • The CFO and Board Office Secretary will make sure that payments match the invoices. If there are any changes, those changes are documented correctly. • The CFO and payroll clerk will ensure all salary sheets are attached to contracts and are available for review. • The CFO will run a report to check additional payments against additional time sheets and will sign off on it. Estimated Completion Date: December 18, 2026 Contact Person: Torrence H. Freeman Ill, CFO Telephone: 706-665-8577 Email: tfreeman@talbot.k12.ga.us

View Audit 410487

Corrective Action Plans

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