Corrective Action Plans

Finding 1201461 (2025-001)

Material Weakness 2025

WI

Questioned Costs Special Tests & Provisions Student Financial Aid

Condition: We selected a sample of 25 students that had a change in status. One of the students information was not reported to NSLDS timely, however the College’s controls did detect the error outside the required timeframe, and the error was corrected. We expanded our sample to 50 students. We fou...

Condition: We selected a sample of 25 students that had a change in status. One of the students information was not reported to NSLDS timely, however the College’s controls did detect the error outside the required timeframe, and the error was corrected. We expanded our sample to 50 students. We found another instance of a student’s information not reported timely, however management did eventually detect and correct the error outside the required timeframe. Corrective Action planned: Management agrees and has implemented necessary procedures/controls to ensure the College is in compliance with enrollment requirements. Management has corrected the student’s change status not previously reported. Name(s) of Contact Person(s) Responsible for Corrective Action: {Jennifer Young, Director of Financial Aid and Edgewood Central, and Katelyn Peters, Student Service Specialist.} Anticipated Completion Date: Has already began as of the audit. Staff turnover occurred, have replaced the Student Service Specialist position - now have second point on NSC reporting.

View Audit 396008

Finding 1201452 (2025-001)

Material Weakness 2025

Heartwood AZ dba Heartwood Montessori

AZ

Allowable Costs / Cost Principles Questioned Costs Internal Control / Segregation of Duties § 200.302 § 200.403

2025-001 Unallowable Costs Planned Corrective Action Plan: Heartwood agrees with the finding and acknowledges that two expenditures charged to the Preschool Development Grants (PDG) program were determined to be unallowable under Federal cost principles. To address this issue and prevent similar occ...

2025-001 Unallowable Costs Planned Corrective Action Plan: Heartwood agrees with the finding and acknowledges that two expenditures charged to the Preschool Development Grants (PDG) program were determined to be unallowable under Federal cost principles. To address this issue and prevent similar occurrences in the future, Heartwood will implement the following corrective actions: 1. Enhanced Review Procedures Heartwood will implement additional review procedures for expenditures charged to Federal programs to ensure that all costs are evaluated for allowability under Uniform Guidance (2 CFR §200.403) and the specific terms and conditions of the PDG grant prior to being charged to the grant. 2. Training for Program and Fiscal Staff Program administrators and fiscal staff responsible for processing or approving grant expenditures will receive training on Federal cost principles and allowable expenditures under Uniform Guidance and the PDG program requirements. 3. Monitoring and Oversight Heartwood will require periodic supervisory review of grant expenditures to confirm that costs charged to the program are properly supported, reasonable, and allowable. 4. Review of Current-Year Expenditures Heartwood will review other expenditures charged to the PDG program during the fiscal year to determine whether additional unallowable costs were incurred and will take appropriate corrective action if necessary. 5. Disposition of Questioned Costs Heartwood will work with the pass-through entity or Federal awarding agency to determine the appropriate disposition of the questioned costs totaling $1,467.53, which may include reimbursement to the grant if required. Anticipated Completion Date: December 31, 2026 Responsible Contact Person: Sherri Sampson, Executive Director

View Audit 395999

Finding 1201451 (2025-001)

Material Weakness 2025

City of Somerville

MA

Questioned Costs Significant Deficiency Matching / Level of Effort / Earmarking § 200.302

Condition: The subsidiary ledger for loans funded by the Federal award programs maintained by the Department did not agree to the City’s general ledger. Corrective Action Planned: The City is actively evaluating a Loan Servicing software package to replace the current offline subledger and anticipat...

Condition: The subsidiary ledger for loans funded by the Federal award programs maintained by the Department did not agree to the City’s general ledger. Corrective Action Planned: The City is actively evaluating a Loan Servicing software package to replace the current offline subledger and anticipate on implementing it in fiscal year 2027. Going forward, Office of Strategic Planning and Community Development (OSPCD) Finance in conjunction with the Auditing Department will train the OSPCD program director and staff on the agreed standard methodology and criteria for recording and reporting new loans and payments in both the subledger and MUNIS. Loan activity will be reconciled to the general ledger to ensure compliance each fiscal year. The City will continue to research discrepancies for CDBG and HOME, make necessary adjustments and plans on resolving the remaining variances in these two program accounts. Anticipated Completion Date: September of 2026 Contact: Alan Inacio, OSPCD Director of Finance and Administration

View Audit 395989

Finding 1201444 (2025-007)

Material Weakness 2025

County of Orange, California

CA

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

Program: Housing Voucher Cluster Federal Financial Assistance Listing Number: 14.871 / 14.879 Federal Grantor: U.S. Department of Housing and Urban Development Award No. and Year: Multiple Compliance Requirements: Special Tests and Provisions – HQS Enforcement Type of Finding: Significant Deficiency...

Program: Housing Voucher Cluster Federal Financial Assistance Listing Number: 14.871 / 14.879 Federal Grantor: U.S. Department of Housing and Urban Development Award No. and Year: Multiple Compliance Requirements: Special Tests and Provisions – HQS Enforcement Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: The 2025 OMB Compliance Supplement requires that for dwellings under Housing Assistance Payment (HAP) contracts that fail a Housing Quality Standards (HQS) inspection, the County must enforce HQS requirements. Specifically, upon notification that a unit has failed HQS, the County must inspect the unit within 15 days to confirm the deficiency and notify the owner if the deficiency is confirmed. Once notified, the owner is required to make the necessary repairs within the prescribed time frame. If the owner does not correct the cited HQS deficiencies within the specified correction period, the County must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: For one sample selected for testing, the County did not timely enforce HQS requirements. Cause: The cause of the finding was an administrative oversight that resulted in delays in issuing the final inspection notice following a missed inspection appointment. The County’s existing procedures did not adequately ensure timely follow-up and escalation when an inspection resulted in a noshow. Effect: Because the required inspection and notification were not completed timely, the County did not fully comply with the HQS enforcement requirements. This delay increased the risk that housing assistance payments could continue for a unit that did not meet HUD’s minimum housing quality standards, potentially affecting program compliance and participant health and safety. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sample of sixty (60) out of a total population of 1,029 instances of failed HQS were selected. The condition noted above was identified during our procedures related to special tests and provisions – HQS enforcement. Repeat Finding from Prior Years: No. Recommendation: We recommend the County strengthen its HQS enforcement procedures by implementing controls to ensure timely follow-up on failed inspections, including missed appointments. Such controls may include automated tracking of inspection deadlines, supervisory review of no-show appointments, and escalation procedures to ensure owners are notified within required time frames. Management Response and Corrective Action Plan: 1. Person Responsible: Linda Tarzjani, Leasing Manager 2. Corrective action plan: Concur. We will strengthen our HQS enforcement procedures by implementing controls to ensure timely follow-up on failed inspections, including missed appointments. In doing so we will consider automated tracking of inspection deadlines, supervisory review of noshow appointments, and escalation procedures to ensure owners are notified within required time frames. 3. Anticipated Implementation date: February 1, 2026

View Audit 395982

Finding 1201438 (2025-003)

Material Weakness 2025

County of Orange, California

CA

Subrecipient Monitoring Material Weakness Reporting

Program: Community Development Block Grant Federal Financial Assistance Listing Number: 14.218 Federal Grantor: U.S. Department of Housing and Urban Development Award No. and Year: B-24-UC-06-0504 and 2025; B-20-UW-06-0504 and 2021 Compliance Requirements: Reporting Type of Finding: Material Weaknes...

Program: Community Development Block Grant Federal Financial Assistance Listing Number: 14.218 Federal Grantor: U.S. Department of Housing and Urban Development Award No. and Year: B-24-UC-06-0504 and 2025; B-20-UW-06-0504 and 2021 Compliance Requirements: Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Instance of Noncompliance Criteria: CFR Appendix A to Part 170I(a)(2), Reporting Requirements, states the recipient must report each subaward to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the end of the month following the month in which the subaward was issued. Condition: During our testing of the County’s compliance with reporting requirements, we noted the County did not submit the required subaward data to FSRS. Cause: The department was unaware of this compliance requirement. Effect: Reports were not submitted to FSRS in accordance with the reporting requirements per Appendix A to Part 170I(a)(2). Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling : We identified that the FFATA reporting was not completed as required by 2 CFR Part 170 for the following instances: (Refer to Chart/Table to Finding 2025-003) Repeat Finding from Prior Years: No. Recommendation: We recommend that the County adhere to their policies and procedures in accordance with 2 CFR Appendix A to Part 170I(a)(2). Management Response and Corrective Action Plan: 1. Person Responsible: Francisco Padilla, Community Development Analyst 2. Corrective action plan: Concur. We will adhere to our policies and procedures to ensure reports are submitted to FSRS in accordance with 2 CFR Appendix A to Part 170I(a)(2). 3. Anticipated Implementation date: April 30, 2026

View Audit 395982

Finding 1201405 (2025-004)

Material Weakness 2025

County of Orange, California

CA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.430

Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Financial Assistance Listing Number: 10.557 Federal Grantor: U.S. Department of Agriculture Pass-Through: California Department of Public Health Award No. and Year: 22-10270 A03 and 2022 Compliance Requireme...

Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Financial Assistance Listing Number: 10.557 Federal Grantor: U.S. Department of Agriculture Pass-Through: California Department of Public Health Award No. and Year: 22-10270 A03 and 2022 Compliance Requirements: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must 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. 2 CFR Section 200.430, Compensation – Personal Services, states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing of the HCA’s provisions for activities allowed or unallowed and allowable costs/cost principles requirements, we noted that for one (1) of sixty (60) payroll samples tested, the employee was able to review and approve their own timecard. Cause: It was determined that the control deficiency resulted from a system configuration error that permitted the employee to approve their own timecard under the supervisor/manager review role. Effect: Failure to consistently apply internal controls over payroll charges increases the risk that unallowable or unsupported payroll costs could be charged to the Federal program and not be detected in a timely manner. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sampling of sixty (60) timecards was selected for testing out of a population of 1,144. The condition noted above was identified during our procedures related to activities allowed or unallowed and allowable costs/cost principles. Repeat Finding from Prior Years: No. Recommendation: Management should ensure appropriate segregation of duties within the payroll system by restricting approval authority to independent supervisors or managers and implementing controls to prevent self-approval. In addition, management should periodically review user access roles and system configurations to confirm that approval controls are operating as designed and that payroll charges to Federal programs are allowable, properly allocated, and adequately supported. Management Response and Corrective Action Plan: 1. Person Responsible: Barbara Harano, HCA Disbursements Manager 2. Corrective action plan: An unexpected change occurred in the OC Time system that allowed an employee to both submit and approve their own timesheet. This issue had been previously reported and resolved. Auditor-Controller IT has reported the issue again to the timekeeping system vendor and is currently validating and testing the updated configuration to ensure the problem does not recur. 3. Anticipated Implementation date: June 30, 2026

View Audit 395982

Finding 1201390 (2025-002)

Material Weakness 2025

Tuba City Unified School District No.15

AZ

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

CORRECTIVE ACTION PLAN U.S. Department of Education | Arizona Department of Education Tuba City Unified School District No. 15 respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of find...

CORRECTIVE ACTION PLAN U.S. Department of Education | Arizona Department of Education Tuba City Unified School District No. 15 respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINANCIAL STATEMENT FINDINGS 2025-001 INFORMATION TECHNOLOGY Type of Finding: Material Weakness in Internal Control Over Financial Reporting Condition/Context: The District did not establish internal control procedures over information technology systems to ensure proper protection of District and student data. The following control deficiencies were noted regarding the District’s information technology policies and procedures: • The District did not limit access within the District’s accounting software to only those areas in each employee’s job function. Several employees had full administrative access to the accounting software, including third-party consultants, without compensating manual controls. • The District did not have a formal written policy regarding system or software changes. • Data-sharing agreements with third party provides that had access to the District’s data were not provided. • Documentation was not provided to support that the IT systems generated electronic audit trail reports or change logs were being reviewed or analyzed. This would include systemgenerated incident or error reports. • Disaster recovery and contingency plans were not provided. Recommendation: To strengthen internal controls, the District should evaluate its procedures regarding information technology security. The District should review and establish IT policies and procedures to protect the District’s data, train employees, establish backup plans, disaster recover or contingency plans, and 3rd party security and data confidentiality agreements. System general irregularity reports, including incident or error reports should be reviewed on an ongoing basis. Corrective Action: The District will evaluate its procedures regarding information technology security. The District will review and establish IT policies and procedures to protect the District’s data, disaster recovery or contingency plans, and 3rd party security and data confidentiality agreements. Additionally, the District will review system generated irregularity reports, including incident or error reports on an ongoing basis. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Leah Begay, Business Manager

View Audit 395963

Finding 1201389 (2025-004)

Material Weakness 2025

Southern Oregon University

OR

Questioned Costs Student Financial Aid Eligibility

Eligibility - Direct Loan Awarding Federal Direct Student Loans (84.268) Recommendation: We recommend that the University enhance its policies and procedures related to the packaging and awarding of financial aid, particularly in situations requiring manual calculations or professional judgment, to ...

Eligibility - Direct Loan Awarding Federal Direct Student Loans (84.268) Recommendation: We recommend that the University enhance its policies and procedures related to the packaging and awarding of financial aid, particularly in situations requiring manual calculations or professional judgment, to ensure student eligibility is accurately determined and awards are properly calculated. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Effective immediately, we've added a required review step for any aid package that is adjusted using professional judgment. This review focuses specifically on confirming that annual loan limits and subsidized eligibility are recalculated correctly after any change. Staff has also received refresher training on subsidized loan eligibility and amounts, and how to verify that the correct amount is awarded when appropriate. In addition, we will incorporate periodic spot checks of files involving manual adjustments to ensure calculations are accurate and consistent. Name(s) of the contact person(s) responsible for corrective action: Erica Riggs Planned completion date for corrective action plan: Spring 2026, ongoing.

View Audit 395962

Finding 1201373 (2025-003)

Material Weakness 2025

University of San Diego

CA

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.313

Corrective Action Plan – Management concurs with this finding. The Controller’s Office has designated a Grants & Contracts Accountant as the primary manager, with the Controller serving as the secondary manager. The primary manager will be responsible for coordinating the inventory process and ensur...

Corrective Action Plan – Management concurs with this finding. The Controller’s Office has designated a Grants & Contracts Accountant as the primary manager, with the Controller serving as the secondary manager. The primary manager will be responsible for coordinating the inventory process and ensuring that a physical inventory is completed by the end of every other fiscal year. The secondary manager will verify completion and support the primary manager, as needed. Inventory procedures will be updated to reflect this change and will be reviewed for best practices and regulatory changes. In addition, the physical inventory task will be incorporated into the annual year-end checklist reviewed by the Vice President of Finance’s Office and the Controller’s Office. Management considers these steps sufficient to ensure compliance with the biennial inventory requirement. Anticipated completion date: June 2026 Persons responsible: Maria G. Sanchez, Controller

View Audit 395955

Finding 1201312 (2025-001)

Material Weakness 2025

University of San Diego

CA

Questioned Costs Special Tests & Provisions Student Financial Aid

Corrective Action Plan – Management concurs with this finding. The exceptions resulted from two distinct scenarios: 1) An official withdrawal processed manually outside the standardized workflow. 2) An unofficial withdrawal triggered by a grade change submitted after the final grade deadline. In Fal...

Corrective Action Plan – Management concurs with this finding. The exceptions resulted from two distinct scenarios: 1) An official withdrawal processed manually outside the standardized workflow. 2) An unofficial withdrawal triggered by a grade change submitted after the final grade deadline. In Fall 2024, an undergraduate student’s official withdrawal was completed late in the semester. The Dean requested a Torero Hub Counselor to manually remove the course, bypassing the standardized workflow. While the Counselor notified the Registrar’s Office, the Office of Financial Aid was not included in the communication chain. To address this gap, the Office of Financial Aid will implement a biweekly report to monitor and verify any changes to student withdrawal statuses that fall outside the automated workflow. Management believes this enhancement will effectively prevent similar errors in the future. The second exception involved a Professional and Continuing Education (PCE) student. After the final grade submission deadline, the instructor updated the student’s grade to an ‘F’, which retroactively classified the student as an unofficial withdrawal. This change occurred after the Office of Financial Aid had already run the final Fall 2024 unofficial withdrawal report. PCE has been notified that grade changes are not permitted after the final grade deadline. Additionally, the Office of Financial Aid will now run the unofficial withdrawal report biweekly beyond the final grade due date to identify and verify any late changes to student withdrawal statuses. Management believes these measures will mitigate the risk of future occurrences. Completion date: September 2025 Persons responsible: Kellie Nehring, Director of Financial Aid and Diana Hannasch-Haag, Director of Retention – Online Degree Programs

View Audit 395955

Finding 1201299 (2025-007)

Material Weakness 2025

State of Hawaii, Department of Accounting and General Services

HI

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness

Finding No. 2025-007 ALN No. 11.419 Program Title: Hawaii Coastal Zone Management Program Grant Award No.: NA22NOS4190022 NA23NOS4190139 NA24NOSX419C0023 NA22NOS4190065 Condition Accuity noted that the State did not submit FFATA reports for most of the active grant agreements open for the program. C...

Finding No. 2025-007 ALN No. 11.419 Program Title: Hawaii Coastal Zone Management Program Grant Award No.: NA22NOS4190022 NA23NOS4190139 NA24NOSX419C0023 NA22NOS4190065 Condition Accuity noted that the State did not submit FFATA reports for most of the active grant agreements open for the program. Corrective Action Plan DBEDT OPSD will strengthen internal controls over subaward identification and reporting. This will include hiring and training staff to support federal grant administration and management-level review of all subawards to ensure FFATA reporting is complete and timely. Person Responsible Mary Alice Evans, Director of Office of Planning and Sustainable Development Anticipated Date of Completion April 1, 2026

View Audit 395953

Finding 1201296 (2025-102)

Material Weakness 2025

Navajo County

AZ

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking

Matching (Significant Deficiency in Internal Control and Noncompliance) Assistance Listings number and program name: COVID-19 93.354 Public Health Emergency Recommendation: The County should establish procedures to track matching requirements in the general ledger, ensure all in-kind contributions a...

Matching (Significant Deficiency in Internal Control and Noncompliance) Assistance Listings number and program name: COVID-19 93.354 Public Health Emergency Recommendation: The County should establish procedures to track matching requirements in the general ledger, ensure all in-kind contributions are supported by proper documentation (e.g., timesheets), and review match compliance before use of federal funds. Contact Person(s): Catrina Jenkins, Emergency Management Manager Anticipated completion date: June 30, 2026 County Discussion: Concur: In coordination with the Arizona Department of Health Services (ADHS), the County will implement procedures to ensure matching activity is properly tracked within the general ledger. The County will also ensure that all in-kind contributions are supported by appropriate documentation, such as timesheets or other relevant supporting records, in accordance with federal grant requirements. Additionally, the County will implement a review process to verify that matching requirements are properly documented and met prior to the drawdown or use of federal funds. These measures are intended to strengthen internal controls and ensure compliance with federal grant matching requirements.

View Audit 395952

Finding 1201295 (2025-101)

Material Weakness 2025

Navajo County

AZ

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Earmarking (Material Weakness in Internal Control and Noncompliance) Cluster name: WIOA Cluster Assistance Listings number and program name: 17.258 WIOA Adult Program 17.259 WIOA Youth Program 17.278 WIOA Dislocated Worker Formula Grants Recommendation: The County should strengthen WIOA Youth Activi...

Earmarking (Material Weakness in Internal Control and Noncompliance) Cluster name: WIOA Cluster Assistance Listings number and program name: 17.258 WIOA Adult Program 17.259 WIOA Youth Program 17.278 WIOA Dislocated Worker Formula Grants Recommendation: The County should strengthen WIOA Youth Activities program policies and procedures to ensure no less than the required 20 percent of its monies is spent to provide in-school and out-of-school youth with paid and unpaid work experience, retain qualified in-school and out-of-school youth, and consistently monitor the County's and subrecipients spending throughout the award period. Contact Person(s): Adam Garrard, WIOA Executive Director Anticipated completion date: June 30, 2026 County Discussion: Concur: The County will take corrective actions to strengthen WIOA Youth program policies, procedures, and oversight to ensure compliance with the 20 percent work experience requirement. This includes ongoing monitoring and oversight of sub-recipient expenditures, addressing barriers to work experience opportunities, and increasing engagement and enrollment of both in-school and out-of-school youth. These activities will include the following: 1) include local school counselors and administrators to support recruitment of in-school youth; 2) engage community partners with access to out-of-school youth; and 3) support outreach, enrollment, and retention strategies to attract eligible youth participants.

View Audit 395952

Finding 1201284 (2025-001)

Material Weakness 2025

Danville Area Community College

IL

Questioned Costs Procurement, Suspension & Debarment Student Financial Aid

Student Financial Assistance Cluster– Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Recommendation: We recommend the college update procedures around disbursements of credit balances and implement controls to ensure credit balances are being returned timely. Explanation of disagreeme...

Student Financial Assistance Cluster– Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Recommendation: We recommend the college update procedures around disbursements of credit balances and implement controls to ensure credit balances are being returned timely. Explanation of disagreement with audit finding: There is no disagreement with the finding. Action taken in response to finding: Prior to FY23, students signed a form acknowledging and authorizing the College to have credit balances held on their account in the event there would be classes added and to purchase books. During FY2023, this procedure was discontinued for an unrelated reason and an unintended consequence was not meeting the 14-day requirement. A new procedure was developed and implemented in January, 2025. The 10 credit balance refunds from the population of 60 were from the period of July 1, 2024, through December 31, 2025. The prior year audit was released on November 15, 2025, at which point all credit balances had already been refunded under the prior procedures. There wasn’t an opportunity to correct the situation until the spring semester in 2025. Name of the contact person responsible for corrective action: Jonathan Jett, Director of Financial Aid Planned completion date for corrective action plan: Completed

View Audit 395941

Finding 1201280 (2025-001)

Material Weakness 2025

Community Service Society of New York

NY

Subrecipient Monitoring Reporting Significant Deficiency

Community Service Society (the Society) requires its subrecipients to submit their financial and progress program reports fifteen days after the end of the reporting period. This is done so that the Society can review the underlying documentation in those reports to ensure that proper payments are m...

Community Service Society (the Society) requires its subrecipients to submit their financial and progress program reports fifteen days after the end of the reporting period. This is done so that the Society can review the underlying documentation in those reports to ensure that proper payments are made to the subrecipients and, in turn, proper and timely reports are filed by the Society with the State of New York. There are instances when, because of delays in receipt of information from the subrecipients, or information from the subrecipients needs to be revised, reports are submitted late to the State of New York. The Society notifies the State of New York when reports will be submitted late. In addition, the Society is working with its subrecipients to improve their reporting procedures, as well as the timeliness and accuracy of their reports. This will result in the Society improving the timeliness of its reporting to the State of New York.

View Audit 395939

Finding 1201264 (2025-005)

Material Weakness 2025

Lindenwood University

MO

Special Tests & Provisions Questioned Costs Student Financial Aid

Corrective Action Plan 2025-005: Management concurs with the finding. The University is revising its procedures to ensure all post-withdrawal disbursement offers are properly issued and documented and will implement additional controls and staff training to ensure future compliance with federal R2T4...

Corrective Action Plan 2025-005: Management concurs with the finding. The University is revising its procedures to ensure all post-withdrawal disbursement offers are properly issued and documented and will implement additional controls and staff training to ensure future compliance with federal R2T4 requirements. Completion Date: February 2026 Contact Person: Joanne Rozborski, Assistant Vice President, Student Financial Services

View Audit 395921

Finding 1201260 (2025-004)

Material Weakness 2025

Lindenwood University

MO

Special Tests & Provisions Questioned Costs Student Financial Aid

Corrective Action Plan 2025-004: Management concurs with the finding. The University is revising its procedures to ensure timely processing of all required R2T4 returns and is implementing additional internal controls and monitoring steps to ensure compliance with the 45-day return requirement. Comp...

Corrective Action Plan 2025-004: Management concurs with the finding. The University is revising its procedures to ensure timely processing of all required R2T4 returns and is implementing additional internal controls and monitoring steps to ensure compliance with the 45-day return requirement. Completion Date: February 2026 Contact Person: Joanne Rozborski, Assistant Vice President, Student Financial Services

View Audit 395921

Finding 1201252 (2025-002)

Material Weakness 2025

Lindenwood University

MO

Questioned Costs Student Financial Aid Eligibility

Corrective Action Plan 2025-002: Management concurs with the finding. The University has implemented controls to ensure that academic grade level progression and COA/OFA adjustments trigger a mandatory review of eligibility through the use of new reports and workflows. Completion Date: February 2026...

Corrective Action Plan 2025-002: Management concurs with the finding. The University has implemented controls to ensure that academic grade level progression and COA/OFA adjustments trigger a mandatory review of eligibility through the use of new reports and workflows. Completion Date: February 2026 Contact Person: Joanne Rozborski, Assistant Vice President, Student Financial Services

View Audit 395921

Finding 1201251 (2025-001)

Material Weakness 2025

Lindenwood University

MO

Special Tests & Provisions Subrecipient Monitoring Cash Management

Corrective Action Plan 2025-001: Management has made the appropriate updates and communicated the URLs for its contract and cost information to the Department of Education in July 2025 for its contract with BankMobile. Management will monitor the Department of Education’s cash management contract li...

Corrective Action Plan 2025-001: Management has made the appropriate updates and communicated the URLs for its contract and cost information to the Department of Education in July 2025 for its contract with BankMobile. Management will monitor the Department of Education’s cash management contract listing and will ensure that the contract is listed once the Department of Education updates its cash management contracts database as the most recent update to the cash management contracts database published by the Department of Education listed an update date of mid-January 2024. Completion Date: July 2025 Contact Person: Joanne Rozborski, Assistant Vice President, Student Financial Services

View Audit 395921

Finding 1201243 (2025-002)

Material Weakness 2025

Washington Community School District

IA

Internal Control / Segregation of Duties

A thorough review of all processes and procedures for handling of cash, investments, receipts, capital assets and computer systems will be done to come up with a better solution to segregate duties so not one person is responsible in any of the areas. A meeting with staff was held and duties re-assi...

A thorough review of all processes and procedures for handling of cash, investments, receipts, capital assets and computer systems will be done to come up with a better solution to segregate duties so not one person is responsible in any of the areas. A meeting with staff was held and duties re-assigned and noted to help improve internal controls and segregation of duties.

View Audit 395918

Finding 1201240 (2025-001)

Material Weakness 2025

Economic Development and Industrial Corporation of Boston

MA

Reporting Subrecipient Monitoring Internal Control / Segregation of Duties

2025-001 Reporting 17.289, Community Project Funding/ Congressionally Directed Spending Responsible Official Devon Wedge, Assistant Controller Plan Detail Management acknowledges that the untimely FFATA reporting resulted from lack of familiarity with reporting requirements for its staff. To address...

2025-001 Reporting 17.289, Community Project Funding/ Congressionally Directed Spending Responsible Official Devon Wedge, Assistant Controller Plan Detail Management acknowledges that the untimely FFATA reporting resulted from lack of familiarity with reporting requirements for its staff. To address this issue and strengthen internal controls, management will implement additional training for its staff, enhance its written procedures and develop a tracking mechanism to establish a tracking log or calendar system to monitor subaward issuance dates and corresponding reporting deadlines. Anticipated Completion Date: April 30, 2026

View Audit 395914

Finding 1201234 (2025-007)

Material Weakness 2025

City of Boston

MA

Questioned Costs Special Tests & Provisions Procurement, Suspension & Debarment

Student Support and Academic Enrichment – Assistance Listing No. 84.424 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calculati...

Student Support and Academic Enrichment – Assistance Listing No. 84.424 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calculation. Action taken in response to finding: In August 2025, Boston Public Schools developed and implemented a revised policy on equitable services that ensures that all communication is stored in a centralized folder for standard reviews. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: August 31, 2025

View Audit 395895

Finding 1201233 (2025-006)

Material Weakness 2025

City of Boston

MA

Questioned Costs Special Tests & Provisions Procurement, Suspension & Debarment

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calcula...

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calculation. Action taken in response to finding: In August 2025, Boston Public Schools developed and implemented a revised policy on equitable services that ensures that all communication is stored in a centralized folder for standard reviews. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: August 31, 2025

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Finding 1201230 (2025-003)

Material Weakness 2025

City of Boston

MA

Questioned Costs Special Tests & Provisions HUD Housing Programs

Housing Opportunities for Persons with Aids – Assistance Listing No. 14.241 Recommendation: We recommend the Mayor’s Office of Housing review and enhance internal controls and procedures to ensure that required inspections are performed timely. Action taken in response to finding: The Mayor’s Office...

Housing Opportunities for Persons with Aids – Assistance Listing No. 14.241 Recommendation: We recommend the Mayor’s Office of Housing review and enhance internal controls and procedures to ensure that required inspections are performed timely. Action taken in response to finding: The Mayor’s Office of Housing, as the HOPWA Grantee, identifies deficiencies in timely completions and documentations of HQS inspections performed by the project sponsor. The sponsor has now fully transitioned to using the Yardi system for property management activities, which will enhance inspection tracking and reporting, and has established monthly inspection monitoring reports to identify upcoming or past-due inspections. These corrective actions address the cause of missing yearly inspections and strengthen internal controls for ongoing compliance. The Mayor’s Office of Housing will ensure continued compliance through quarterly reviews of HQS inspection reports (submitted by the sponsor) and complete targeted file monitoring to verify timely completion and documentation, including any deficiency corrections. Name(s) of the contact person(s) responsible for corrective action: Kiarah Perdomenico, Housing Development Officer HOPWA program manager Planned completion date for corrective action plan: April 3, 2026

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Finding 1201229 (2025-002)

Material Weakness 2025

City of Boston

MA

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Economic Development Cluster - Assistance Listing No. 11.307 Recommendation: We recommend the Mayor’s Office of Workforce Development develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month follow...

Economic Development Cluster - Assistance Listing No. 11.307 Recommendation: We recommend the Mayor’s Office of Workforce Development develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month following the month of issuance of each subaward. Action taken in response to finding: The City has implemented a more timely FFATA review and submission procedure in FY25/FY26, however due to this award having been transferred from another organization this was not able to be submitted on Sam.gov. The City made multiple attempts to have the award updated in the system but due to this program ending, there was no contact available to remedy this issue. Name(s) of the contact person(s) responsible for corrective action: Colin Musto, Assistant City Auditor Planned completion date for corrective action plan: March 1, 2026

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Corrective Action Plans

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