Corrective Action Plans

Finding 1172867 (2025-001)

Material Weakness 2025

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

Finding 1172719 (2025-001)

Material Weakness 2025

Waypoint Services for Women, Children, and Families & Subsidary

IA

Cash Management Reporting Internal Control / Segregation of Duties

Recommendation: We suggest management ensure the monthly reconciliation are prepared timely and reconciled to ensure that federal awards agree without error. Additionally, we suggest management document reviews of the reconciliation reports. Response: Management will perform the monthly reconciliati...

Recommendation: We suggest management ensure the monthly reconciliation are prepared timely and reconciled to ensure that federal awards agree without error. Additionally, we suggest management document reviews of the reconciliation reports. Response: Management will perform the monthly reconciliations in a timely manner to ensure that all federal awards are in agreement with what is sent in for reimbursable reports. Additionally, management will review the reconciliation reports in a timely manner. Conclusion: Response accepted.

View Audit 385974

Finding 1172687 (2025-001)

Material Weakness 2025

East Peoria Elementary School District No. 86

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 or associate superintendent) compares the meal counts in the cl...

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 or associate superintendent) compares the meal counts in the claim to the Skyward and RevTrak 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: Tony Ingold, Superintendent. Management response: The corrective action plan was discussed with the employee responsible for filing the claim, the associate superintendent, and the superintendent. After discussion, the plan was approved and will be implemented.

View Audit 385944

Finding 1172677 (2025-002)

Material Weakness 2025

University of Puerto Rico

PR

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

Finding Number: 2025-002 Federal Program: Student Financial Assistance (SFA) Cluster - Various ALN Control Requirement - Return of Title IV Funds Management’s Response The University of Puerto Rico concurs with this finding. Institutional units have identified opportunities for improvement in intern...

Finding Number: 2025-002 Federal Program: Student Financial Assistance (SFA) Cluster - Various ALN Control Requirement - Return of Title IV Funds Management’s Response The University of Puerto Rico concurs with this finding. Institutional units have identified opportunities for improvement in internal controls related to the timely return of Title IV funds and have implemented, or are in the process of implementing, corrective measures to ensure compliance with the regulatory timeframe of 45 days. The Cayey unit identified that the delay in the return of Title IV funds was related to an unintentional administrative error in the handling and filing of R2T4 documentation, within a context of operational transition and temporary staffing limitations. As a corrective action, the Fiscal Office will strengthen periodic reviews of total withdrawal reports generated in the NEXT system, ensure proper classification and monitoring of R2T4 cases, and provide continuous follow-up until funds are effectively returned within the 45 days regulatory timeframe. As a control mechanism, direct oversight of the R2T4 process by the Finance Director has been established, including recurring reviews of total withdrawal reports and reconciliation of these reports with refund vouchers, in order to ensure that all cases are processed and returned in a timely manner. The Humacao unit acknowledged that the cases identified by the auditors were related to specific circumstances, including system errors, technical limitations, and operational workload associated with the implementation of the shared services model. As a corrective measure, the unit implemented changes to the total withdrawal request form and process to ensure coordinated handling between the Office of Financial Aid and the Fiscal Office, allowing for early identification of cases subject to R2T4. Additionally, the Fiscal Office will review total withdrawal reports generated by the NEXT system on a recurring basis, perform R2T4 calculations timely, and coordinate with the Office of Finance to process returns within the regulatory timeframe. Oversight of the process has been strengthened through the designation of responsible personnel and continuous monitoring of active cases through completion. The Carolina unit identified that delays in the return of Title IV funds were due to discrepancies in attendance reports that were subsequently amended. As a corrective action, the Office of Financial Aid will formally notify the Fiscal Office of any corrections or amendments to attendance reports to ensure that R2T4 cases are identified timely. In addition, the use of “Never Attended” reports has been reinforced at the conclusion of the census period and upon completion of the grade submission period. Once the R2T4 calculation is completed in the COD system and a return is determined, the refund process will be initiated immediately, accompanied by continuous follow-up and the scheduling of key dates to ensure compliance with the 45 days regulatory requirement. The Central Administration Finance Office will conduct a meeting with Finance Directors, Financial Aid Directors, the Office of the Registrar, and Fiscal Directors to discuss this finding and establish a uniform procedure to address the following scenarios: • Students who request a total withdrawal. • Students who stopped attending. • Students who never attended. Additionally, a control mechanism will be implemented through the SharePoint platform, whereby each Fiscal Director will certify that system reviews have been performed for cases approaching the 45 days regulatory deadline. This control will be performed on a bi-weekly basis and will allow for timely monitoring of active cases, ensuring proper compliance with the required return of funds. For cases related to grade-based census determinations, which are processed once faculty submit grades in the system, an additional control mechanism will be established. Specifically, the SharePoint tool will be used for Fiscal Directors to document the academic calendar deadlines for grade submission. Furthermore, Fiscal Directors will schedule Outlook calendar events with these deadlines, including the Director of Financial Aid and the Office of the Registrar, and will establish automated reminders to ensure timely follow-up. These procedures will be documented and incorporated into the internal control manual applicable to the R2T4 process. Responsible Person or Office: Central Administration Finance Office and the finance offices of each of the eleven (11) institutional units. Implementation Timeline: 2026-2027

View Audit 385928

Finding 1172611 (2025-001)

Material Weakness 2025

Satellite St. Andrew's Manor, LLC

CA

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Finding 2025-001: Reportable finding considered a significant deficiency – Activities Allowed and Unallowed Management at Satellite Affordable Housing Associates Property Management (“SAHA PM”) is in agreement with the finding and intends to follow the requirements of the HUD Regulatory Agreement in...

Finding 2025-001: Reportable finding considered a significant deficiency – Activities Allowed and Unallowed Management at Satellite Affordable Housing Associates Property Management (“SAHA PM”) is in agreement with the finding and intends to follow the requirements of the HUD Regulatory Agreement in the future. Management has reimbursed the property $28,539, an amount equal to HCD’s net cash flow payment from FY 2024. Management will reimburse the property the $12,600 for FY 2025 and FY 2024 annual monitoring fees paid to HCD. Management will seek to obtain HUD approval on form HUD-9250 for payment of these fees from residual receipts.

View Audit 385881

Finding 1172608 (2025-003)

Material Weakness 2025

Neighborhood Properties, Inc.

OH

Allowable Costs / Cost Principles Reporting Significant Deficiency

Continuum of Care Program – Assistance Listing No. 14.267 Recommendation: Management should implement a strategy of using time and effort documentation in determining payroll costs charged to grants, including use of backward-looking reconciliations when necessary. Explanation of disagreement with a...

Continuum of Care Program – Assistance Listing No. 14.267 Recommendation: Management should implement a strategy of using time and effort documentation in determining payroll costs charged to grants, including use of backward-looking reconciliations when necessary. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management of the Organization is in the process of implementing a policy to track time and effort of all employees based on actual time spent by grant. Some employees work directly with tenants on a HUD funded grant on a regular basis, but all employees may work directly with a tenant on a HUD funded grant or may perform administrative work specifically on a HUD funded grant from time to time. Therefore, all employees will track time spent with tenants or specifically with a grant in the Yardi Tenant Contact system. • Housing Support Staff and Management will document grant allocations as required. • Backoffice employees, such as those working in HR or Accounting, will be allocated to Admin and Support within the HUD funded grant, based on time spent. • Maintenance employees can be allocated to tenants based on units and work orders. • Formal review of payroll and grant allocations, based on time sheets, will take place by March 30th 2026, and on a monthly basis going forward. Potential true-up to take place after each review. Name(s) of the contact person(s) responsible for corrective action: Susan Keshen, Fractional CFO Planned completion date for corrective action plan: March 31, 2026

View Audit 385864

Finding 1172555 (2025-002)

Material Weakness 2025

YWCA Pierce County

WA

Internal Control / Segregation of Duties § 200.303

Monthly/quarterly reimbursement invoices will be prepared by the Finance Coordinator. Before submission, the Finance Director will review the invoices comparing them with general ledger supporting documents and then will initial the organization’s copy of the invoice. The CEO, or other designee will...

Monthly/quarterly reimbursement invoices will be prepared by the Finance Coordinator. Before submission, the Finance Director will review the invoices comparing them with general ledger supporting documents and then will initial the organization’s copy of the invoice. The CEO, or other designee will then review and sign the original invoice being sent to the grantor.

View Audit 385850

Finding 1172552 (2025-001)

Material Weakness 2025

Darlington Community School District

WI

Internal Control / Segregation of Duties

Finding #2025-001 – Limited Segregation of Duties (Prior Year Finding #2024-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detecte...

Finding #2025-001 – Limited Segregation of Duties (Prior Year Finding #2024-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the District’s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District. Contact Person: Cale Jackson Anticipated Completion: Not Applicable

View Audit 385843

Finding 1172547 (2025-004)

Material Weakness 2025

Saguache County Community Council, Inc.

CO

Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

Corrective action Plan: Due to the termination of activities as mentioned in Note 8 of the financial statements, the Organization is unable to develop and implement a corrective action plan.

View Audit 385826

Finding 1172546 (2025-003)

Material Weakness 2025

Saguache County Community Council, Inc.

CO

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Material Weakness

Corrective action Plan: Due to the termination of activities as mentioned in Note 8 of the financial statements, the Organization is unable to develop and implement a corrective action plan.

View Audit 385826

Finding 1172540 (2025-001)

Material Weakness 2025

Connected Lane County

OR

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.212 § 200.512

Finding 2025-001: Significant deficiency in internal controls over compliance and immaterial noncompliance Corrective Action Planned: Connected Lane County updated internal control processes, approved by the board on 05.21.25, which significantly reduced year end processing delays and the number of ...

Finding 2025-001: Significant deficiency in internal controls over compliance and immaterial noncompliance Corrective Action Planned: Connected Lane County updated internal control processes, approved by the board on 05.21.25, which significantly reduced year end processing delays and the number of corrections needed to complete the audit. The audit for fiscal year 2025 ending on June 30, 2025 was completed within seven months of the end of the fiscal year. Person(s) Responsible: Jesse Nelson, Executive Director and Mary Bell, Finance Manager Anticipated Completion Date: 09.01.2025

View Audit 385818

Finding 1172539 (2025-002)

Material Weakness 2025

Zepf Center

OH

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Fatherhood Connection (FIRE) – Assistance Listing No. 93.086 Recommendation: The Center should implement controls for review of payment limits prior to distributing funds to program participants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action ...

Fatherhood Connection (FIRE) – Assistance Listing No. 93.086 Recommendation: The Center should implement controls for review of payment limits prior to distributing funds to program participants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is implementing a tool to monitor and track the incentive payments. Name(s) of the contact person(s) responsible for corrective action: David Oppenlander, CFO Planned completion date for corrective action plan: January 31, 2026

View Audit 385809

Corrective Action Plans

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