Corrective Action Plans

Finding 1169102 (2025-004)

Material Weakness 2025

WI

Internal Control / Segregation of Duties

Segregation of Duties – Child Nutrition Cluster Recommendation: Our auditors recommend the District designate an individual to review accuracy of status determination and input into software. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action plan...

Segregation of Duties – Child Nutrition Cluster Recommendation: Our auditors recommend the District designate an individual to review accuracy of status determination and input into software. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: To address segregation of duties concerns within the Child Nutrition Cluster program, the District has implemented enhanced controls and designated the Director of Food Services to conduct independent reviews of all eligibility determinations for free and reduced-price meal benefits. This process is actively underway with positive results. The designated reviewer verifies accuracy and completeness of household applications, confirms correct income calculations and household size determinations, and reviews eligibility data input into our nutrition management software to confirm accurate recording of statuses. We have established a formal monthly review schedule with increased scrutiny during peak application periods, and these reviews have already identified and corrected several discrepancies that could have led to compliance issues. Documentation of reviews, including discrepancies and corrective actions, is maintained in program files for monitoring purposes. Since implementing this segregated review process, we have seen measurable improvements in eligibility determination accuracy, with fewer errors requiring correction and greater consistency in applying program rules. By separating initial determination from review and verification functions, we have created meaningful checks and balances that reduce error risks and prevent potential fraud. Additionally, we have implemented periodic training for all staff involved in the meal application process. These measures effectively strengthen segregation of duties within our Child Nutrition Cluster operations, enhance accountability, and ensure program integrity. Name of the contact person responsible for correction action: Lavesa Glover-Verhagen Planned completion date for corrective action: June 30, 2026

View Audit 381858

Finding 1169096 (2025-002)

Material Weakness 2025

Jacksonville Airport Authority

IL

Internal Control / Segregation of Duties

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF Transportation- Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs- AL Number 20.106 Finding No.: 2025-002 Condition: The Authority's accounting function is controlle...

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF Transportation- Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs- AL Number 20.106 Finding No.: 2025-002 Condition: The Authority's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Recommendation: The Authority should segregate duties where possible. The Board should be aware of this problem and closely review and approve all financial related information. Action Taken: The Authority concurs with the recommendation. The Authority has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Treasurer continually reminds the Board of their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost feasible to hire additional personnnel. Anticipated Date of Completion: Ongoing

View Audit 381847

Finding 1169093 (2025-001)

Material Weakness 2025

Bellin College, Inc.

WI

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

The institution implemented adequate oversight to ensure the dates and the student information match NSLDS. To achieve this, the institution has started following up every NSLDS report-run with monitoring to visually confirm the correct data shows up in NSLDS within the required timeframe. The insti...

The institution implemented adequate oversight to ensure the dates and the student information match NSLDS. To achieve this, the institution has started following up every NSLDS report-run with monitoring to visually confirm the correct data shows up in NSLDS within the required timeframe. The institution will keep documentation of the audits and will audit 100% of the records until confidence is gained that the process is working and NSLDS reporting is compliant.

View Audit 381839

Finding 1169088 (2025-004)

Material Weakness 2025

City of Forest City

IA

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

The City will work on a formal process for tracking all federal grants so that the reported federal expenditures are accurate.

View Audit 381838

Finding 1169086 (2025-003)

Material Weakness 2025

Northland Pines School District

WI

School Nutrition Programs Internal Control / Segregation of Duties

Recommendation: We recommend that the District review its internal controls and implement a procedure to ensure all applications for the Child Nutrition Cluster are provided to the Business Manger for review to ensure the eligibility determination is correct. Explanation of Disagreement with Audit F...

Recommendation: We recommend that the District review its internal controls and implement a procedure to ensure all applications for the Child Nutrition Cluster are provided to the Business Manger for review to ensure the eligibility determination is correct. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Taken in Response to Finding: The Food Service Director and her assistant will ensure ALL application are reviewed by each of them, and then passed onto the Business Manager for a third review and approval. The Food Service Director will keep all applications on file. Name of Responsible Official: Tera Fritz, Business Manager Expected Completion Date: September 1, 2025

View Audit 381821

Finding 1169081 (2025-002)

Material Weakness 2025

Northland Pines School District

WI

School Nutrition Programs Internal Control / Segregation of Duties Cash Management

Recommendation: We recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is distinct from the individual responsible for preparing. Explanation of Disagreement with Audit Finding: There is no ...

Recommendation: We recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is distinct from the individual responsible for preparing. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Taken in Response to Finding: The Business Manager and School Food Service Director met regarding the finding and agreed that the Food Service Director will continue to gather the required claim data and enter the appropriate data into DPIs required Excel template monthly. All supporting documentation as well as the Excel documents will be emailed to the Business Manager monthly. The Business Manager will verify the numbers in the Excel documents using the supporting documentation. If the Business Manager agrees with the numbers in the Excel files, they will be uploaded to DPI as is. If any discrepancies are discovered, the Food Service Director and the Business Manager will work together to ensure the correct data is sent to DPI. Name of Responsible Official: Tera Fritz, Business Manager Expected Completion Date: September 1, 2025

View Audit 381821

Finding 1169071 (2025-001)

Material Weakness 2025

ALASKA ESKIMO WHALING COMMMISSION

AK

Allowable Costs / Cost Principles Cash Management Reporting

Management agrees with the finding and has implemented redundant scheduled reminders for the appropriate due dates for the next fiscal year.

View Audit 381778

Finding 1169067 (2025-002)

Material Weakness 2025

Iowa Grant School District

WI

Material Weakness Internal Control / Segregation of Duties

Finding #2025-002 -Material Audit Adjustments (Prior Year Finding #2024-002) Condition: The audit proposed adjusting journal entries during the audit process to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did n...

Finding #2025-002 -Material Audit Adjustments (Prior Year Finding #2024-002) Condition: The audit proposed adjusting journal entries during the audit process to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District's internal controls. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District's financial position or activities. Cause: Financial information was not recorded in a timely manner and numerous adjustments were needed in order to correct account balances. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor in future years. Contact Person: Loras Winders Anticipated Completion: June 30, 2026

View Audit 381762

Finding 1169066 (2025-001)

Material Weakness 2025

Iowa Grant School District

WI

Internal Control / Segregation of Duties

Finding #2025-00 l - Segregation of Duties (Prior Year Finding #2024-001 Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Cause: Controls Over Accounts Payable/Disbursements Person processing accounts payable is not always separate from th...

Finding #2025-00 l - Segregation of Duties (Prior Year Finding #2024-001 Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. 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. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. 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 io an attempt to bring about a more effective segregation of duties. The Board of Education approves monthly accow1ts payable checks and the Department Head or Building Principal approves payroll timesheets prior to processing payroll. The Board, Principals, and Department Heads will continue to monitor transactions of the District. Contact Person: Loras Winders Anticipated Completion: Not Applicable

View Audit 381762

Finding 1169059 (2025-002)

Material Weakness 2025

Bethel University and Affiliates

MN

Subrecipient Monitoring Internal Control / Segregation of Duties Significant Deficiency

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: CLA recommends reviewing and updating key IT/financially relevant organization-wide policies and procedures on an annual basis. CLA also recommends the Organization review the institution's written information security pr...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: CLA recommends reviewing and updating key IT/financially relevant organization-wide policies and procedures on an annual basis. CLA also recommends the Organization review the institution's written information security program and ensure that a qualified individual (i.e. CIO, CISO, ISO) has been identified to enforce and monitor GLBA compliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: During the audit period, the University experienced significant employee turnover within the Information Technology department, which contributed to delays in the review and update of key IT and financially relevant policies and procedures. A new Chief Information Officer (CIO) has since been hired and has begun addressing the gaps noted in the finding. Under the CIO’s leadership, the University is actively reviewing and updating organization-wide IT policies, procedures, and the written information security program. The CIO is also assuming responsibility for enforcing and monitoring GLBA compliance going forward. Name(s) of the contact person(s) responsible for corrective action: John Honchell, CIO Planned completion date for corrective action plan: May 31, 2026

View Audit 381755

Finding 1169053 (2025-001)

Material Weakness 2025

Bethel University and Affiliates

MN

Student Financial Aid Material Weakness Reporting

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There i...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In response to these challenges, the University initiated corrective actions beginning in Summer 2025. 1. Dedicated Technical Resources: We have been assigned dedicated ITS staff members (managed by Dynamic Campus) specifically to the resolution of enrollment and graduation submission and compilation logic. 2. Submission Scheduling: A rigid schedule for monthly enrollment and graduation submissions has been established for both Branch 00 and Branch 76. 3. Staffing: An additional Registrar’s Office staff member has been shifted to assist with the NSC process, specifically focusing on the remediation of error reports. 4. Policy Revision: We have simplified the degree conferral policy to improve the accuracy of graduation reporting. We are also working to align end of term grade submission deadlines to allow for timely end of term processing and degree conferrals. This in turn will aid in more timely submissions especially as it affects graduation reporting. 5. Data Mapping: The Registrar’s Office has collaborated with ITS to audit the specific fields and tables used to generate Clearinghouse reports. This addresses the complexity of reporting on two branches involving multiple term codes. 6. Automation: We have implemented a timely and automated submission schedule. 7. Change Management Protocols: A protocol is being implemented to prevent ITS system upgrades or network maintenance during scheduled reporting windows. 8. Data Reconciliation: We will implement a strict monitoring of Clearinghouse records regarding graduation and withdrawal dates, reconciling them against the Student Information System (SIS) and NSLDS data. That will occur once we can gain NSLDS access for the two staff members. Discrepancies will be corrected immediately. Special attention will be paid to conferral dates since they may not align with the final day of the term or sub-term. 9. Cross-Departmental Alignment: We will continue regular consultations with the Financial Aid Office regarding complex registration changes to ensure consistent interpretation and reporting. 10. Ongoing Training: Staff will continue to utilize training opportunities provided by the Clearinghouse, Banner, and other relevant bodies. Name(s) of the contact person(s) responsible for corrective action: Cheryl Fisk, University Registrar Planned completion date for corrective action plan: March 1, 2026

View Audit 381755

Finding 1169047 (2025-002)

Material Weakness 2025

Parents As Teachers National Center, Inc.

MO

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

View of Responsible Officials and Planned Corrective Actions: The Center concurs with the finding. We acknowledge that our current accounting systems are outdated and lack the functionality required to support accurate and efficient expense allocations. We are in the final stages of selecting a new ...

View of Responsible Officials and Planned Corrective Actions: The Center concurs with the finding. We acknowledge that our current accounting systems are outdated and lack the functionality required to support accurate and efficient expense allocations. We are in the final stages of selecting a new accounting system that which enhance our financial reporting capabilities and improve allocation accuracy. In the interim, the Center has implemented manual procedures to mitigate the risk of misallocations. Specifically, credit card purchases are now being manually entered into the general ledger to ensure each transaction is accurately matched to its corresponding receipt. This process provides greater transparency and reduces the likelihood of erroneous allocations. Additionally, we continue to utilize our Purchase Order process, which requires pre-approval by management for all purchases. This control ensures that expenditures are authorized and properly aligned with program objectives prior to being incurred. These interim measures, combined with our upcoming system upgrade, are intended to strengthen our internal controls and ensure that expenses charged to Federal awards are allocable in accordance with 2 CFR § 75.405.

View Audit 381737

Finding 1169046 (2025-001)

Material Weakness 2025

Parents As Teachers National Center, Inc.

MO

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

View of Responsible Officials and Planned Corrective Actions: We acknowledge that the current payroll expense allocation process is highly manual and susceptible to errors due to its subjective nature. The process of reviewing and editing data for upload to the general ledger (GL) relies heavily on ...

View of Responsible Officials and Planned Corrective Actions: We acknowledge that the current payroll expense allocation process is highly manual and susceptible to errors due to its subjective nature. The process of reviewing and editing data for upload to the general ledger (GL) relies heavily on manual intervention, increasing the risk of misallocations. To address this, ADP is in the process of developing a custom payroll report that will include all required fields to accurately allocate payroll expenses to the appropriate programs each pay period. This report will replace the current process, which depends on manually referencing saved reports that may contain outdated information. In addition, our monthly payroll reconciliation procedures are being updated to incorporate a comparison between data from the ADP reports and the GL. By using pivot tables to analyze raw data, we aim to enhance the accuracy of our payroll allocations and provide greater confidence in the validity of expenses charged to federal awards. These corrective actions are intended to strengthen our internal controls and ensure full compliance with the allocability requirements outlined in 2 CFR § 75.405.

View Audit 381737

Finding 1169028 (2025-001)

Material Weakness 2025

Detroit Regional Chamber Foundation, Inc.

MI

Allowable Costs / Cost Principles Reporting Significant Deficiency

2025-001 – Lack of Independent Review and Approval of Reporting Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Control over Compliance (Reporting). Program. Economic Development Cluster; Economic Adjustment Assistance; U.S. Department of Commerce; ALN 11.307; Passed throu...

2025-001 – Lack of Independent Review and Approval of Reporting Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Control over Compliance (Reporting). Program. Economic Development Cluster; Economic Adjustment Assistance; U.S. Department of Commerce; ALN 11.307; Passed through SEMCA; Award Number EDA-HDQ-ARPBBB-2021-2006976. Condition. The Foundation is required to submit semi-annual reports on the grant expenditures, and we noted that these reports are not subjected to an independent review and approval process. Effect. Although no reporting errors were found, the Foundation was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Corrective Action Plan. The monthly Financial Status Report will be reviewed by both the CFO and Senior Director, MichAuto before being submitted for reimbursement. Contact Person Responsible. Jason Jurczyk, VP, Finance and Revenue Growth Anticipated Completion Date. October 2025

View Audit 381713

Finding 1169027 (2025-005)

Material Weakness 2025

North Greene Unit School District No. 3

IL

Internal Control / Segregation of Duties

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF AGRICULTURE- 2024 and 2025 Child Nutrition Cluster- AL Number 10.555, 10.553 Finding No.: 2025-005 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate se...

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF AGRICULTURE- 2024 and 2025 Child Nutrition Cluster- AL Number 10.555, 10.553 Finding No.: 2025-005 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Recommendation: The District should segregate duties where possible. The Board should be aware of this issue and closely review and approve all financial related information. Action Taken: The District concurs with the recommendation. The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Superintendent continually reminds the Board of their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost feasible to hire additional personnel. Anticipated Date of Completion: Ongoing

View Audit 381702

Finding 1169025 (2025-004)

Material Weakness 2025

North Greene Unit School District No. 3

IL

Internal Control / Segregation of Duties

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF EDUCATION- 2024 Elementary and Secondary School Emergency Relief Fund- AL Number 84.425 Finding No.: 2025-004 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the in...

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF EDUCATION- 2024 Elementary and Secondary School Emergency Relief Fund- AL Number 84.425 Finding No.: 2025-004 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Recommendation: The District should segregate duties where possible. The Board should be aware of this issue and closely review and approve all financial related information. Action Taken: The District concurs with the recommendation. The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Superintendent continually reminds the Board of their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost feasible to hire additional personnel. Anticipated Date of Completion: Ongoing

View Audit 381702

Finding 1169017 (2025-002)

Material Weakness 2025

Hrca Housing for Elderly, Inc. D/b/a Jack Satter House

MA

HUD Housing Programs Internal Control / Segregation of Duties Procurement, Suspension & Debarment

Criteria: HUD requires the Organization to maintain fidelity bond coverage of at least two months' cash collections Cause: Following completion of the 2025 Mark-to-Market process for HRCA Housing for Elderly Inc., we failed to update our fidelity bond coverage to reflect the revised requirements. Ac...

Criteria: HUD requires the Organization to maintain fidelity bond coverage of at least two months' cash collections Cause: Following completion of the 2025 Mark-to-Market process for HRCA Housing for Elderly Inc., we failed to update our fidelity bond coverage to reflect the revised requirements. Action Plan: Once the finding was identified, we immediately contacted our insurance broker and requested an increase to the fidelity bond coverage. The bond has since been raised to a $2M limit, and the updated policy became effective on 11/14/25. Going forward, the fiscal team will incorporate an annual verification of bond coverage into its routine monitoring procedures to ensure timely updates after significant organizational or regulatory changes. In addition, we are implementing an internal audit component to enhance our review of all HUD requirements. This added oversight will help mitigate future risk and ensure continued compliance with all applicable regulations.

View Audit 381685

Finding 1168969 (2025-003)

Material Weakness 2025

Niobrara County School District No. 1

WY

Internal Control / Segregation of Duties Procurement, Suspension & Debarment

December 16, 2025 To Whom it May Concern: This letter is in response to the audit findings identified in the annual district financial report for fiscal year ended June 30, 2025 issued by Leo Riley & Co. This le er addresses the following compliance findings: 2025-001 Separa on of Du es The district...

December 16, 2025 To Whom it May Concern: This letter is in response to the audit findings identified in the annual district financial report for fiscal year ended June 30, 2025 issued by Leo Riley & Co. This le er addresses the following compliance findings: 2025-001 Separa on of Du es The district is unable to assign a different person to each stage of the transac on cycle due to the lack of personnel. The district will brief new Trustees on their role in internal control and stress the importance of their oversight responsibili es. In addi on, the district will consider providing training on detec ng abuse and fraud as well as ordering printed materials for distribu on to Trustees. 2025-002 Budget Noncompliance The district is aware that the budget was exceeded and has implemented procedures to monitor and amend the budget in accordance with Wyoming State Statute. 2025-003 Separation of Duties The district is unable to assign a different person to each stage of the transac on cycle due to the lack of personnel. The district will brief new Trustees on their role in internal control and stress the importance of their oversight responsibili es. In addi on, the district will consider providing training on detec ng abuse and fraud as well as ordering printed materials for distribu on to Trustees. Sincerely, Katie Redmann Business Manager

View Audit 381609

Finding 1168960 (2025-001)

Material Weakness 2025

Grand County School District

UT

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Finding 2025-001 Reporting – Annual Reporting Criteria: Education Stabilization Fund (ESF) grantees must submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds, including mandatory reservations. Local Education Agencies submit data to th...

Finding 2025-001 Reporting – Annual Reporting Criteria: Education Stabilization Fund (ESF) grantees must submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds, including mandatory reservations. Local Education Agencies submit data to the state education agencies. Key line items must include expenditures by category, object code, and allocations to schools. Audit Recommendation: We recommend management of the District review processes related to reporting for the ESF and establish appropriate internal controls to ensure all reporting requirements are met. Corrective Action Planned: The District will review, update and train staff on the process and internal controls related to reporting for the ESF to ensure compliance with the reporting requirements. Person(s) Responsible: Matthew Keyes, Superintendent ad interim Anticipated Completion Date: December 31, 2025

View Audit 381563

Finding 1168951 (2025-001)

Material Weakness 2025

Coastal Bend College

TX

Special Tests & Provisions Subrecipient Monitoring Eligibility

Finding 2025-001: Required Services to Eligible Participants Name of Contact Person: TRIO Talent Search Beeville Project Director, Ruby Hernandez Corrective Action: The College has corrected this issue by requiring staff to submit bimonthly student contact reports through Blumen within five business...

Finding 2025-001: Required Services to Eligible Participants Name of Contact Person: TRIO Talent Search Beeville Project Director, Ruby Hernandez Corrective Action: The College has corrected this issue by requiring staff to submit bimonthly student contact reports through Blumen within five business days following each reporting period. This process ensures consistent and well-documented outreach to students while strengthening the accuracy and completeness of program records. Under the leadership of the new TRIO Talent Search Beeville Director, the system is now fully operational and demonstrating compliance, with supervisory oversight in place to prevent future occurrences. This reporting practice has been standardized and implemented across all four TRIO programs. Proposed Completion Date: 11/01/2025 Anticipated Completion Date: Completed

View Audit 381494

Finding 1168917 (2025-003)

Material Weakness 2025

Momence Community Schools Unit District No. 1

IL

Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.403 § 200.404

The District will become more thoroughly aware of applicable compliance requirements and seek guidance in writing when necessary from the appropriate granting agencies. Anticipated Completion: January 1, 2026 Responsible Party: Lynette Thrasher, lthrasher@mcusd1.net 815-472-6477

View Audit 381381

Finding 1168912 (2025-003)

Material Weakness 2025

Glencoe-Silver Lake Public Schools Isd No. 2859

MN

Reporting School Nutrition Programs Significant Deficiency § 200.303

CHILD NUTRITION CLUSTER - REPORTING Recommendation: Management should ensure their key controls are operating effectively and they should document the review and approval of all the reports. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Action plan...

CHILD NUTRITION CLUSTER - REPORTING Recommendation: Management should ensure their key controls are operating effectively and they should document the review and approval of all the reports. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Action planned/taken in response to finding: The District will evaluate its control processes in place prior to meal claims being reported to the state for reimbursement and ensure they properly review and approve the claims being reported prior to reporting them and document that approval. The District also understands the person reviewing and approving the claims to be reported should be different from the individual compiling that amount to be reported so two individuals are involved in the process. Name of the contact person responsible for corrective action: Trisha Zajicek, Director of Finance Planned completion date for corrective action plan: June 30, 2026

View Audit 381335

Finding 1168886 (2025-001)

Material Weakness 2025

Canal Winchester Local School District

OH

Cash Management Reporting Internal Control / Segregation of Duties

The District implemented the Community Eligibility Provision (CEP) beginning in FY 2025, providing free breakfast and lunch districtwide. Prior to CEP implementation, all students were required to enter Student ID information at the point of sale, which automatically generated accurate CN-6 and CN-7...

The District implemented the Community Eligibility Provision (CEP) beginning in FY 2025, providing free breakfast and lunch districtwide. Prior to CEP implementation, all students were required to enter Student ID information at the point of sale, which automatically generated accurate CN-6 and CN-7 reports used for reimbursement claims. With the implementation of CEP, the Food Service Director eliminated Student ID entry at the cash register for grades K-5 to simplify service for younger students and improve meal service efficiency. As permitted by Ohio Department of Education and Workforce (DEW), the District transitioned to using daily paper count sheets to record meals served. This manual process required accurate daily calculations, which introduced risk due to the absence of automated checks. Because the District had historically relied on automated point-of-sale reports, the Assistant Treasurer did not independently recalculate or verify the CN-6 and CN-7 meal counts prior to submission in CRRS. As a result, inaccuracies occurred in multiple monthly reimbursement claims. Effective November 1, 2025, the District implemented corrective measures to strengthen internal controls over meal counting and claiming. The daily count sheets were converted from a paper format to an Excel-based worksheet with built-in formulas to ensure accurate calculation of daily and monthly meal totals for CN-6 and CN-7 reporting. The Food Service Director is responsible for completing the daily count sheets and ensuring that daily totals align with CN-6 and CN-7 report data. The Assistant Treasurer has been designated as the responsible individual for reviewing CN-6 and CN-7 reports and verifying that reported meal counts agree to the reimbursement claim submitted in CRRS prior to submission. These corrective actions establish segregation of duties, improve calculation accuracy, and ensure required internal controls are in place to comply with 7 CFR § 210.8(a) and 7 CFR § 220.11(b). The District believes these measures adequately address the audit finding and will prevent recurrence of meal count inaccuracies in future reimbursement claims.

View Audit 381260

Finding 1168869 (2025-001)

Material Weakness 2025

Ahepa 284-Iv, Inc.

SC

HUD Housing Programs Reporting Internal Control / Segregation of Duties

The property was repaid $61,198 and internal controls were properly updated.

View Audit 381213

Finding 1168867 (2025-001)

Material Weakness 2025

Lake Geneva Joint #1 School District

WI

Internal Control / Segregation of Duties

Management Response – Because of the size of the office and the district, we are precluded from maintaining a proper staff size to ensure a proper segregation of duties. We are aware of this condition, and we realize that the concentration of duties and responsibilities in a limited number of indivi...

Management Response – Because of the size of the office and the district, we are precluded from maintaining a proper staff size to ensure a proper segregation of duties. We are aware of this condition, and we realize that the concentration of duties and responsibilities in a limited number of individuals in not desirable for an effective system of internal control. To mitigate the issue of lack of segregation of duties, we have cross trained virtually each of the business office employees. While we do have a dedicated payroll person, another individual will perform cross checks & verifications independently. The same goes for issuing checks, accounts receivable, accounts payable, and activity funds. These functions are overseen by the business manager.

View Audit 381212

Corrective Action Plans

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