Corrective Action Plans

Finding 1215371 (2025-001)

Material Weakness 2025

Dima Vi INC

DE

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 1. Finding 2025-001: Lack of Formalized Compliance Monitoring and Documented Management Oversight a. Comments on the Finding and Each Recommendation: We acknowledge the condition identified and note that correctiv...

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 1. Finding 2025-001: Lack of Formalized Compliance Monitoring and Documented Management Oversight a. Comments on the Finding and Each Recommendation: We acknowledge the condition identified and note that corrective actions and compliance monitoring enhancements were implemented or initiated prior to report issuance. Historically, certain compliance oversight activities relied heavily on operational knowledge and informal review procedures that were not consistently documented. Following organizational restructuring and personnel transitions, management initiated a broader effort to formalize and strengthen internal compliance monitoring, supervisory review procedures, and documentation practices across our housing portfolio. b. Action(s) Taken or Planned on the Finding: 1. Monthly Compliance and Financial Oversight Meetings: We have implemented recurring monthly oversight meetings involving executive leadership, finance, and housing management personnel to review financial reporting, reserve activity, compliance requirements, tenant-related matters, and operational performance. Meeting documentation and evidence of supervisory review are maintained as part of our compliance monitoring procedures. 2. Expanded Finance and Compliance Oversight Structure: We have strengthened our internal oversight structure through the addition of a Chief Financial Officer with expanded oversight responsibilities for the housing entities and a Director of Housing and Compliance responsible for operational and regulatory compliance oversight. Responsibilities between accounting, compliance, and operational functions have been further segregated to strengthen internal controls and management review procedures. 3. Formalized Compliance Monitoring Procedures: We have implemented standardized compliance monitoring procedures, including monthly reserve deposit tracking, supervisory review checklists, documented financial statement review procedures, reconciliation monitoring, and periodic compliance checklists addressing key HUD program requirements. 4. Ongoing Monitoring and Documentation Retention: We will continue strengthening documentation retention procedures to ensure evidence of compliance monitoring, supervisory review, and reconciliation activities is consistently maintained and available for future audits and regulatory reviews.

View Audit 401918

Finding 1215370 (2025-003)

Material Weakness 2025

Edcouch-Elsa Independent School District

TX

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.403

Finding 2025-003 Duplicate expenditures charged to same grant Recommendation: We recommend the District establish and maintain proper review procedures for expenditures charged to grants prior to submission for reimbursement. Management’s View: The District will strengthen internal controls over pay...

Finding 2025-003 Duplicate expenditures charged to same grant Recommendation: We recommend the District establish and maintain proper review procedures for expenditures charged to grants prior to submission for reimbursement. Management’s View: The District will strengthen internal controls over payroll expenditures charged to federal grants by implementing a standard operating procedure that will be conducted by the Payroll Specialist of verifying payroll distribution reports, funding codes, and supporting documentation prior to submission for payment. Before each payroll is finalized, the payroll specialist will run a payroll report that will be generated and sorted by employee to verify that no duplicate charges have been applied to the same grant within the same payroll period. This review will ensure that all costs charged to federal grants during the pay period are accurate, allowable, properly coded, and not duplicated. No payroll adjustments will be keyed until timesheets have been verified against previously submitted timesheets and that they are reviewed to confirm that prior entries have not already been charged to the same grant. Additionally, a secondary review by the accountant will be conducted prior to finalizing grant-related payrolls. Effective March 1, 2026, the Payroll Accountant and Chief Financial Officer will review grant-related payroll transactions to ensure accuracy, proper funding allocation, and compliance with applicable federal requirements. Effective Date: March 1, 2026 Contact Person: Sylvia Garza, Chief Financial Officer, Edcouch-Elsa Independent School District

View Audit 401915

Finding 1215364 (2025-008)

Material Weakness 2025

Humboldt County

NV

Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.318 § 200.320 § 200.326

This is the result of procurement transactions fonded with the ARPA Coronavirus State and Local Recovery Funds. The County did not conduct procurement transactions in a manner providing fair and open competition on two constrnction contracts. The comptrollers office will enhance procurement policies...

This is the result of procurement transactions fonded with the ARPA Coronavirus State and Local Recovery Funds. The County did not conduct procurement transactions in a manner providing fair and open competition on two constrnction contracts. The comptrollers office will enhance procurement policies and review of federal grant funded purchases.

View Audit 401913

Finding 1215357 (2025-001)

Material Weakness 2025

Nutrition Plus Inc.

KS

Internal Control / Segregation of Duties

Corrective Action: We will continue to have the Board of Directors review the financial activity of the entity. Due to the small size of the organization, it is not economically feasible to achieve a complete segregation of duties. Emily Roark, Executive Director, will be responsible for the correct...

Corrective Action: We will continue to have the Board of Directors review the financial activity of the entity. Due to the small size of the organization, it is not economically feasible to achieve a complete segregation of duties. Emily Roark, Executive Director, will be responsible for the corrective action.

View Audit 401906

Finding 1215210 (2025-001)

Material Weakness 2025

Village at Amherst

TX

Questioned Costs Subrecipient Monitoring HUD Housing Programs § 200.512

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely...

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely submission of the Single Audit reporting package to the FAC. Reporting Views of Responsible Officials Management acknowledges the late submission and has implemented procedures to assign responsibility for FAC submission and track required deadlines. Management believes these actions will prevent recurrence. Auditee concurs with this finding. Auditee agrees with auditor recommendations. Completion Date or Proposed Completion Date: May 31, 2026 by Rebecca Copeland, Controller - Property Accounts Action(s) Taken or Planned on the Finding The electronic submissions will be entered into the online FAC system.

View Audit 401876

Finding 1215199 (2025-008)

Material Weakness 2025

City Of Wakefield

MI

Reporting Internal Control / Segregation of Duties § 200.512

The City acknowledges the finding. The delayed completion of the audit process contributed to the untimely submission of the reporting package and Data Collection Form. Federal reporting deadlines have been incorporated into the City’s annual compliance calendar, and management will continue coordin...

The City acknowledges the finding. The delayed completion of the audit process contributed to the untimely submission of the reporting package and Data Collection Form. Federal reporting deadlines have been incorporated into the City’s annual compliance calendar, and management will continue coordinating earlier completion of audit deliverables and required submissions. Future submissions will be monitored to ensure compliance with the Uniform Guidance deadline requirements.

View Audit 401866

Finding 1215198 (2025-007)

Material Weakness 2025

City Of Wakefield

MI

Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

The City acknowledges the finding. The City will continue developing and maintaining written policies and procedures appropriate to its federal award activity and the terms and conditions of applicable federal awards. Policies and procedures will address internal controls, reporting responsibilities...

The City acknowledges the finding. The City will continue developing and maintaining written policies and procedures appropriate to its federal award activity and the terms and conditions of applicable federal awards. Policies and procedures will address internal controls, reporting responsibilities, record retention, allowable costs, procurement standards, conflictof- interest requirements where applicable, and compliance monitoring procedures consistent with Uniform Guidance requirements.

View Audit 401866

Finding 1215158 (2025-004)

Material Weakness 2025

Grant Community Consolidated School District #110

IL

School Nutrition Programs Internal Control / Segregation of Duties Questioned Costs § 200.303

Finding No. 2025-004 Condition – Claims submitted for reimbursement did not reconcile with the District’s internally prepared monthly claim summary report. Plan – The District will ensure that meal counts are thoroughly reviewed prior to submission. Meal counts are entered into the computer by the F...

Finding No. 2025-004 Condition – Claims submitted for reimbursement did not reconcile with the District’s internally prepared monthly claim summary report. Plan – The District will ensure that meal counts are thoroughly reviewed prior to submission. Meal counts are entered into the computer by the FSMC, and has been a place where errors have occurred. The district secretary is responsible for entering the meal counts into the state system. She is verifying the counts from the FSMC, comparing to attendance and invoices, and ensuring correct data goes into IWAS. This was started last spring, when we became aware of FSMC inconsistencies. The current year, FY26, has been much more accurate. Anticipated Date of Completion: current – 9/1/2026 Name of Contact Person: Matt Stines, Superintendent

View Audit 401821

Finding 1215150 (2025-011)

Material Weakness 2025

Friends Alliance Housing Ii,inc D/b/a Friendship House

LA

Subrecipient Monitoring HUD Housing Programs Internal Control / Segregation of Duties

Management will implement a monthly reserve funding checklist, automate recurring reserve transfers where feasible, and require Board review of reserve account activity. Reserve deposits will be supported by bank statements and documented through signed monthly checklists, with exceptions documented...

Management will implement a monthly reserve funding checklist, automate recurring reserve transfers where feasible, and require Board review of reserve account activity. Reserve deposits will be supported by bank statements and documented through signed monthly checklists, with exceptions documented and remediated.

View Audit 401818

Finding 1215141 (2025-004)

Material Weakness 2025

Inter-Tribal Council of Michgian, Inc.

MI

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.331

2025-004: Subrecipient Monitoring - Contractor vs. Subrecipient Determination (Significant Deficiency in Internal Control) Statement of Condition/Criteria: 2 CFR §200.331 requires pass-through entities to evaluate each subaward to determine whether the recipient is a subrecipient or a contractor. Th...

2025-004: Subrecipient Monitoring - Contractor vs. Subrecipient Determination (Significant Deficiency in Internal Control) Statement of Condition/Criteria: 2 CFR §200.331 requires pass-through entities to evaluate each subaward to determine whether the recipient is a subrecipient or a contractor. This evaluation should be based on the characteristics outlined in 2 CFR §200.331(a) and (b) and documented to support proper classification. Effective internal control over federal awards also requires documentation of compliance-related judgments to ensure consistent application and oversight. During our testing of internal controls over compliance, we noted that the Organization does not maintain formal documentation supporting its evaluation of whether award recipients are classified as contractors or subrecipients in accordance with Uniform Guidance. Planned Corrective Action: The Council will work to implement requirements at the program level to evaluate and document all contracts to properly identify between contract and subaward. Contact person responsible for corrective action plan: Clayton Kincheloe, Executive Director Anticipated Completion Date: September 2026

View Audit 401814

Finding 1215128 (2025-001)

Material Weakness 2025

Inter-Tribal Council of Michgian, Inc.

MI

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

2025-001: Delinquent Data Collection Form Filing (SF-SAC) (Noncompliance) Statement of Condition/Criteria: Uniform Guidance requires the auditee to submit a reporting package and Data Collection Form to the Federal Audit Clearinghouse within the prescribed timeframe. The auditee must submit the repo...

2025-001: Delinquent Data Collection Form Filing (SF-SAC) (Noncompliance) Statement of Condition/Criteria: Uniform Guidance requires the auditee to submit a reporting package and Data Collection Form to the Federal Audit Clearinghouse within the prescribed timeframe. The auditee must submit the reporting package and DCF within the earlier of 30 calendar days after receipt of the auditor’s reports, or 9 months after the end of the audit period. For the fiscal year ended 9/30/2024, the auditee’s Data Collection Form and reporting package were not submitted timely to the Federal Audit Clearinghouse. Failure to submit the Data Collection Form and reporting package timely may result in delayed federal oversight and monitoring, increased risk of federal agencies deeming the organization noncompliant with Single Audit requirements, or potential sanctions including withholding of federal awards and/or suspension of future funding. Planned Corrective Action: The Council will implement a Single Audit compliance calendar to ensure timely filing. The Executive Director will be responsible for submission of the Data Collection Form and reporting package and will retain confirmation documentation in the finance records. Contact person responsible for corrective action plan: Clayton Kincheloe, Executive Director Anticipated Completion Date: September 2026

View Audit 401814

Finding 1215066 (2025-001)

Material Weakness 2025

Central Valley School District No. 356

WA

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

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Central Valley School District No. 356 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Central Valley School District No. 356 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal eligibility requirements. Name, address, and telephone of District contact person: Mathew Knott, Director of Business Services 2218 N. Molter Road Liberty Lake, WA 99019 509-558-5437 Corrective action the auditee plans to take in response to the finding: The District does agree that one school with a poverty rate above 75% was not served. However, OSPI reviewed and approved the District’s Title I application, including our proposed ranking and allocation methodology, and no concerns or comments were raised during that review process. Additionally, the District was able to provide alternative snapshot dates demonstrating that no individual school was truly above the 75% threshold. Once the District became aware of the issue, we proactively contacted OSPI to determine whether any corrective action was necessary for the current year. OSPI’s guidance was that no changes or corrections were required for the current year and that adjustments should instead be implemented in the following year if a school exceeded the 75% threshold. Based on that direction from OSPI, the District did not make current-year corrections. Given these circumstances, including OSPI’s prior approval of the application and subsequent guidance that no corrective action was required, the District respectfully disagrees with the State Auditor’s Office conclusion that this matter rises to the level of a Finding rather than being addressed through a Management Letter. We consider this matter to be resolved as no school going into the 2025-2026 fiscal year was above the 75% threshold. Anticipated date to complete the corrective action: 8/31/2025

View Audit 401770

Finding 1215059 (2025-002)

Material Weakness 2025

Los Angeles Homeless Services Authority

CA

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.303 § 200.430

Continuum of Care Assistance Listing No. 14.267 Payroll Disbursements Recommendation: We recommend that LAHSA implement procedures to ensure that timesheet approval is documented timely. Explanation of disagreement with audit finding: There is no disagreement withthe audit finding. Action taken in r...

Continuum of Care Assistance Listing No. 14.267 Payroll Disbursements Recommendation: We recommend that LAHSA implement procedures to ensure that timesheet approval is documented timely. Explanation of disagreement with audit finding: There is no disagreement withthe audit finding. Action taken in response to finding: LAHSA has enhanced its internal controls over timesheet approvals to ensure timely documentation. Timesheet approval status reports are reviewed on a weekly basis during Chief level meetings to monitor compliance. Timesheets not approved within two days of the established deadline are escalated to the respective Chief and Deputy Chief for immediate follow-up. If timesheets remain unapproved after an additional two days, the matter is further escalated to the CEO, for prompt resolution. These procedures establish clear accountability and escalation protocols to ensure timely approval of timesheets Names of the contact persons responsible for corrective action: Gita O'Neill, Keshia Douglas, Christopher Williams, and Paul Rubenstein. Planned completion date for corrective action plan: Implemented

View Audit 401769

Finding 1215053 (2025-005)

Material Weakness 2025

Central Minnesota Jobs and Training Services

MN

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

Finding 2025-005: Documentation of Allocations for Certain Costs Recommendation: The Organization should reinforce its existing allocation documentation procedures by ensuring they are consistently applied to all disbursements charged to federal programs. Management should enhance oversight and moni...

Finding 2025-005: Documentation of Allocations for Certain Costs Recommendation: The Organization should reinforce its existing allocation documentation procedures by ensuring they are consistently applied to all disbursements charged to federal programs. Management should enhance oversight and monitoring controls to verify that required documentation is completed and retained for every applicable transaction. Action Taken: CMJTS has since worked with DEED to update our cost allocation policy, and DEED approved our new policy. In this policy, the CMJTS fiscal team will work with CMJTS program managers to update allocations for the upcoming month. Changes to allocations will be documented and saved for record retention. CMJTS also migrated to a new accounting system in February 2025 which makes it easier to track allocations and ensure required documentation is completed and retained.

View Audit 401763

Finding 1214968 (2025-001)

Material Weakness 2025

City of Tahlequah

OK

Reporting Internal Control / Segregation of Duties

Management Response: Management acknowledges the importance of timely submission of single audit reports to the State Auditor and FAC to ensure compliance. Management has made Professional Services changes to ensure timely audit compliance moving forward.

View Audit 401740

Finding 1214930 (2025-002)

Material Weakness 2025

CITY OF SILVER LAKE

MN

Internal Control / Segregation of Duties

Segregation of Duties

View Audit 401700

Finding 1214930 (2025-002)

Material Weakness 2025

CITY OF SILVER LAKE

MN

Internal Control / Segregation of Duties

Name of Contact Person: Diane Pederson, City Clerk

View Audit 401700

Finding 1214930 (2025-002)

Material Weakness 2025

CITY OF SILVER LAKE

MN

Internal Control / Segregation of Duties

Correction Action: The finance related tasks will be separated as much as possible and alternative controls will be used to compensate for the lack of separation. The City Council will become more involved in providing some of these controls.

View Audit 401700

Finding 1214930 (2025-002)

Material Weakness 2025

CITY OF SILVER LAKE

MN

Internal Control / Segregation of Duties

Proposed Completion Date: The City Council will implement the above procedures immediately.

View Audit 401700

Finding 1214902 (2025-001)

Material Weakness 2025

Town of Evansville

WY

Internal Control / Segregation of Duties

THIS LETTER IS IN RESPONSE TO FINDING 2025-001 IN THE FINDINGS AND COSTS 2025-001 SEPARATIONS OF DUTIES . WE HAVE SEPARATED DUTIES TO THE LARGEST EXTENT AS POSSIBLE AND HAVE EMPLEMENTED COMPENSATING CONTROLS TO MONITOR THE ACCOUNTING ACTIVITIES. ALEXI ERICKSON, TOWN TREASURER, THE TOWN OF EVANSVILLE...

THIS LETTER IS IN RESPONSE TO FINDING 2025-001 IN THE FINDINGS AND COSTS 2025-001 SEPARATIONS OF DUTIES . WE HAVE SEPARATED DUTIES TO THE LARGEST EXTENT AS POSSIBLE AND HAVE EMPLEMENTED COMPENSATING CONTROLS TO MONITOR THE ACCOUNTING ACTIVITIES. ALEXI ERICKSON, TOWN TREASURER, THE TOWN OF EVANSVILLE, WYOMING

View Audit 401659

Finding 1214894 (2025-001)

Material Weakness 2025

American Academy of Addiction Psychiatry, Inc.

RI

Significant Deficiency Internal Control / Segregation of Duties Questioned Costs § 200.512

Audit Finding Reference: 2025-001 Timely Filing of Single Audit Report Planned Corrective Action: The Organization understands it is the responsibility of the Organization to ensure the Single Audit Report is filed timely, At the beginning of the audit process, the Organization will establish an agr...

Audit Finding Reference: 2025-001 Timely Filing of Single Audit Report Planned Corrective Action: The Organization understands it is the responsibility of the Organization to ensure the Single Audit Report is filed timely, At the beginning of the audit process, the Organization will establish an agreed timeline with its auditors and the Organization will produce documentation consistent with that timeline. Planned Implementation Date of Corrective Action: April 21, 2026 Person Responsible for Corrective Action: Mike Stuard, Director of Finance

View Audit 401656

Finding 1214889 (2025-001)

Material Weakness 2025

HOMER ELECTRIC ASSOCIATION, INC

AK

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

Description of Finding: The Association did not have proper review procedures in place to document that an individual other than the one who prepared the reports are reviewing them. Management Response: Management of the Cooperative concurs with the auditors’ finding related to documentation of inde...

Description of Finding: The Association did not have proper review procedures in place to document that an individual other than the one who prepared the reports are reviewing them. Management Response: Management of the Cooperative concurs with the auditors’ finding related to documentation of independent review over federal grant reporting. Corrective Action: Reports submitted under the Community Wildfire Defense Grants program included a required certification signature by an authorized official; however, the state-provided reporting form did not include a separate preparer signature line. As a result, while management review and approval occurred prior to submission, documentation distinguishing report preparation from certification was not evident on the submitted forms. Management recognizes the importance of clearly documenting segregation of preparation and review responsibilities to evidence effective internal controls. To address this matter, the Cooperative will revise its grant reporting process to include documented identification of both the preparer and reviewer for all federal grant reports. When state-provided forms do not include a preparer acknowledgment, the Cooperative will supplement the form with an internal preparer certification or signature line that is retained with the grant file. Management believes these actions will strengthen documentation of internal controls over reporting while continuing to comply with state and federal reporting requirements. The Cooperative remains committed to responsible oversight and stewardship of federal grant funds for the benefit of its members. This change was implemented beginning with the first quarterly reporting period under the Grant Agreement in 2026. Projected Completion: A second signature line for the preparer was added to the Community Wildfire Defense Financial Progress Reports to document HEA’s review procedure. This was instituted with the First Quarterly Report submitted on 4/15/26. Responsible Official(s): Chief Financial Officer

View Audit 401647

Finding 1214885 (2025-001)

Material Weakness 2025

New England Interstate Water Pollution Control Commission

MA

Reporting Internal Control / Segregation of Duties § 200.512

NEIWPCC agrees with the finding and will strengthen its internal procedures to ensure timely submission of the Federal Audit Clearinghouse reporting package going forward.

View Audit 401638

Finding 1214879 (2025-001)

Material Weakness 2025

Newburyport Housing Authority

MA

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

CORRECTIVE ACTION PLAN 2025-001- REPORTING Significant Deficiency/Noncompliance Auditee’s Response and Planned Corrective Action The Newburyport Housing Authority submitted audit documentation late due to the Executive Director, Tracy Watson, being on medical leave since August 2025. During this tim...

CORRECTIVE ACTION PLAN 2025-001- REPORTING Significant Deficiency/Noncompliance Auditee’s Response and Planned Corrective Action The Newburyport Housing Authority submitted audit documentation late due to the Executive Director, Tracy Watson, being on medical leave since August 2025. During this time, staff experienced difficulties obtaining the required documentation needed to complete the audit in a timely manner. The NHA Board of Commissioners named Kim Kane as Interim Executive Director during Tracy Watson’s absence. Kim Kane will ensure all documentation is submitted in full and in a timely manner. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Kim Kane, Interim Executive Director

View Audit 401612

Finding 1214871 (2025-001)

Material Weakness 2025

Ottawa Elementary School District 141

IL

Material Weakness Reporting Internal Control / Segregation of Duties

Management is currently confident with the abilities of the accounting staff to prepare interim financial statements. The District has also accepted the additional risk associated with the auditor drafting year-end financial statements including the notes to the financial statements. Management will...

Management is currently confident with the abilities of the accounting staff to prepare interim financial statements. The District has also accepted the additional risk associated with the auditor drafting year-end financial statements including the notes to the financial statements. Management will review, approve, and take responsibility for the financial statements.

View Audit 401597

Corrective Action Plans

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