Corrective Action Plans

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 § 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 Allowable Costs / Cost Principles Reporting

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 Subrecipient Monitoring

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

Finding 1214868 (2025-002)

Material Weakness 2025

Town of Lincoln

RI

Procurement, Suspension & Debarment Significant Deficiency Internal Control / Segregation of Duties § 200.303 § 200.318 § 200.326

Significant Deficiency in Internal Control over Compliance, Other Matters Description of Finding Lincoln Public Schools procurement standards do not include the essential elements as outlined in 2 CFR sections 200.303, and 200.318 through 200.326 within Uniform Guidance. Statement of Concurrence or ...

Significant Deficiency in Internal Control over Compliance, Other Matters Description of Finding Lincoln Public Schools procurement standards do not include the essential elements as outlined in 2 CFR sections 200.303, and 200.318 through 200.326 within Uniform Guidance. Statement of Concurrence or Nonconcurrence Management concurs with the finding. Corrective Action Management will update Lincoln Public Schools’ procurement policies to include all essential elements to be in compliance with Uniform Guidance.

View Audit 401582

Finding 1214864 (2025-002)

Material Weakness 2025

Saraland Manor, Inc.

MS

Subrecipient Monitoring Eligibility HUD Housing Programs

We agree with Finding 2025-002 and the recommendations described above. We will provide additional training to staff to ensure annual recertifications are completed in a timely manner.

View Audit 401563

Finding 1214863 (2025-004)

Material Weakness 2025

Saraland Manor, Inc.

MS

Internal Control / Segregation of Duties Subrecipient Monitoring HUD Housing Programs

We agree with Finding 2025-004 and the recommendations described above. We will work to implement additional controls over financial reporting to ensure the financials are submitted in a timely manner.

View Audit 401563

Finding 1214826 (2025-002)

Material Weakness 2025

Central Decatur Community School District

IA

Internal Control / Segregation of Duties

The District reviews this audit finding annually and continues to evaluate internal control procedures to achieve the maximum segregation of duties possible within current staffing limitations. Due to the limited number of office personnel, complete segregation of duties is not always practical; how...

The District reviews this audit finding annually and continues to evaluate internal control procedures to achieve the maximum segregation of duties possible within current staffing limitations. Due to the limited number of office personnel, complete segregation of duties is not always practical; however, the District continues to utilize compensating controls, including administrative oversight, review of reconciliations and financial reports, approval processes, and periodic monitoring of transactions. The District will continue to assess procedures and make improvements where feasible to strengthen internal controls and reduce risk.

View Audit 401550

Finding 1214821 (2025-001)

Material Weakness 2025

Lightup Your World INC

NJ

Reporting Internal Control / Segregation of Duties § 200.512

May 15, 2026 CORRECTIVE ACTION PLAN Finding #2025-001: The reporting package and data collection form for the June 30, 2024 Single Audit were not submitted by the March 30, 2025 deadline. Auditors’ Recommendation: The organization should ensure that its financial records are completed and reconciled...

May 15, 2026 CORRECTIVE ACTION PLAN Finding #2025-001: The reporting package and data collection form for the June 30, 2024 Single Audit were not submitted by the March 30, 2025 deadline. Auditors’ Recommendation: The organization should ensure that its financial records are completed and reconciled in a timely manner so that the Single Audit can be performed and finalized on schedule, and the reporting package and data collection form can be submitted before the required deadline. Corrective Action Taken: To prevent recurrence of this finding, the organization has implemented significant improvements to its financial reporting and audit compliance processes. These include: Streamlining and strengthening internal financial reporting procedures, and Establishing a formal timeline and accountability framework for all federal and grant-related audit submissions. As a result, all financial reports are now prepared and submitted in accordance with required deadlines. Audit reconciliation processes and financial compliance controls have been substantially strengthened through continuous collaboration. These measures ensure that future deadlines will be met consistently and without delay Anticipated Completion Date: March 2027 Responsible Individual: Dr. Moses Tucker PhD, Director, Operations/Finance

View Audit 401541

Finding 1214818 (2025-001)

Material Weakness 2025

Institute on Aging

CA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding 2025-001: Allocation of Payroll Costs - Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance – Allowable Costs/Cost Principles Program: U.S. Department of Health and Human Services – Medicaid Cluster Response and Corrective Action Plan: Management acknowle...

Finding 2025-001: Allocation of Payroll Costs - Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance – Allowable Costs/Cost Principles Program: U.S. Department of Health and Human Services – Medicaid Cluster Response and Corrective Action Plan: Management acknowledges that documentation supporting payroll allocations for PATH CITED-related activities did not fully align with Uniform Guidance expectations for federal awards. The Organization was not aware that PATH CITED funding constituted federal assistance during FY2025 due to the absence of federal identifiers in grant documentation and related communications from DHCS. As such, payroll costs were managed under the Organization’s standard operational practices rather than federal compliance-specific requirements. The Organization applied a reasonable and consistent allocation methodology based on supervisory oversight and expected levels of effort, which management believes appropriately reflected the work performed, given the nature of the program at that time. Upon confirmation of the federal nature of the funding, management will take the following corrective actions which includes enhancing a time attestation/time studies process for personnel working on federal awards and strengthening policies requiring periodic after-the-fact review of payroll allocations and documentation retention requirements for supervisory approvals. Anticipated Completion Date: by June 30, 2026 Responsible Person: Virginia Lui, VP, Controller

View Audit 401536

Finding 1214792 (2025-002)

Material Weakness 2025

Hello Neighbor

PA

Internal Control / Segregation of Duties

Management is in the process of hiring a VP of Operations who will take several responsibilities off of the Director of Finance, allowing for better focus over monthly and yearly closing processes.

View Audit 401521

Finding 1214784 (2025-001)

Material Weakness 2025

Near East Foundation

NY

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

CORRECTIVE ACTION PLAN U.S. Department of State Near East Foundation and Subsidiaries (the “Foundation”) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #6...

CORRECTIVE ACTION PLAN U.S. Department of State Near East Foundation and Subsidiaries (the “Foundation”) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: July 1, 2024 – June 30, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2025-001 Books and records Recommendation: Our auditors recommend that we strengthen the financial close process by establishing and maintaining a structured closing timeline, ensuring timely preparation and review of key account reconciliations, and evaluating staffing levels and resources within the finance function to support timely and accurate financial reporting. Action Taken: The Foundation is actively addressing staffing and capacity considerations within the finance department and is implementing enhancements to strengthen the timeliness and efficiency of the close process. These efforts include engaging outsourced resources to assist in completing outstanding reconciliations and stabilizing the overall close cycle. Name(s) of Contact Person(s) Responsible for Corrective Action: John Ashby, CEO, (315) 428-8670. Anticipated Completion Date: May 2026 FINDINGS – FEDERAL AWARD PROGRAM AUDIT None

View Audit 401519

Finding 1214780 (2025-001)

Material Weakness 2025

Sanford

SD

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

As it relates to Research milestone billing for the PASC grant, procedures were revised in 2025 after the 2024 Audit. Upon receipt of invoice and payment from PASC, the Research Billing team will review and provide notification to Research Director and Research Manager via email if the invoice and p...

As it relates to Research milestone billing for the PASC grant, procedures were revised in 2025 after the 2024 Audit. Upon receipt of invoice and payment from PASC, the Research Billing team will review and provide notification to Research Director and Research Manager via email if the invoice and payment received matches to what is shown as owed in our systems. The Corrective Action Plan from the 2024 Audit was already put into place however this is a repeat finding due to the timing of the 2024 finding. Responsible Party: Stephanie Swanson, Director of Insurance Anticipated completion date: Already Complete

View Audit 401518

Finding 1214771 (2025-001)

Material Weakness 2025

Blue Ridge Area Health Education Center, Inc.

GA

Internal Control / Segregation of Duties Cash Management Reporting

2025-01: Segregation of Duties Name of contact person: Caroline Aultman, Executive Director Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compens...

2025-01: Segregation of Duties Name of contact person: Caroline Aultman, Executive Director Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. However, the risk of not segregating certain duties is not worth the additional costs. Nonfinancial employees will be trained and provide some assistance. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 401508

Finding 1214767 (2025-001)

Material Weakness 2025

Northeast Texas Public Health District

TX

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

Management’s Views and Corrective Action Plan: Management’s Views: Management agrees with the finding. While the hours charged to the federal programs were reasonable and supported, the lack of timely supervisory approval represents a breakdown in the District’s established internal control procedur...

Management’s Views and Corrective Action Plan: Management’s Views: Management agrees with the finding. While the hours charged to the federal programs were reasonable and supported, the lack of timely supervisory approval represents a breakdown in the District’s established internal control procedures over payroll processing. Management acknowledges the importance of ensuring that all payroll charges to federal awards are properly reviewed and approved in accordance with District policy and federal requirements. Corrective Action: The District’s Human Resource Department will verify timecard approvals on Mondays. If Monday falls on a holiday, approvals will be verified on the Friday before. Human Resources will verify that each employee has approved his or her timecard for the prior week and that the employee’s Supervisor or Director has also approved the timecard. For timecards not approved by the employee, an email will be sent to the employee and the Supervisor or Director will be included. For timecards not approved by the Supervisor or Director, an email will be sent to the Supervisor or Director requesting approval, and the CEO will be included. Prior policy did not specify actions when timecards are not approved. Responsible Party: The District’s Human Resources Director and Department Directors Implementation Date: June 1, 2026 Monitoring Procedures: The Human Resources Director will maintain documentation of the weekly review process, including any follow-up communications. Compliance with the timecard approval policy will be periodically reviewed to ensure the control is operating effectively. Any recurring issues will be communicated to executive management for further action. Monitoring procedures were not included in prior policy.

View Audit 401492

Finding 1214745 (2025-002)

Material Weakness 2025

Woods Hole, Martha's Vineyard and Nantucket Steamship Authority

MA

Internal Control / Segregation of Duties Significant Deficiency

2025-002: Inadequate Controls Related to Wage Rate Requirements Condition: Of the five contracts included within major program 20.205 in the current year, two were subject to the wage rate requirement. These two contracts accounted for $1.9M of the $4M total program expenditures. In total there were...

2025-002: Inadequate Controls Related to Wage Rate Requirements Condition: Of the five contracts included within major program 20.205 in the current year, two were subject to the wage rate requirement. These two contracts accounted for $1.9M of the $4M total program expenditures. In total there were 13 weeks of payroll included within the two contracts, of which three were selected for testing. The internal control failure occurred due to the timing of the invoices in relation to year end close procedures. Payment was accelerated to capture both the expense and cash outlay within the same fiscal year overlooking the need to confirm the receipt of the certified payrolls. Corrective Action Taken or Planned: Prior to submitting any invoices that are reimbursable with federal funds, the accounting staff will verify in writing that the vendor’s certified payrolls have been received and reviewed. Additionally, a newly created Federally Funded Invoice and Payment Compliance Checklist form has been created. This form will be completed and submitted with the approved invoice for payment. Person Responsible for Corrective Action: Mark Rozum, Treasurer/Comptroller Anticipated Completion Date for Corrective Action: The corrective action has already started and will be fully implemented within 30 days in response to the auditor’s recommendations.

View Audit 401486

Finding 1214723 (2025-001)

Material Weakness 2025

South Coastal Counties Legal Services, Inc. and Affiliate

MA

Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

April 23, 2026 Cognizant or Oversight Agency for Audit South Coastal Counties Legal Services, Inc. and Affiliate respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: AAFCPAs, Inc. 50 Washington Street ...

April 23, 2026 Cognizant or Oversight Agency for Audit South Coastal Counties Legal Services, Inc. and Affiliate respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: AAFCPAs, Inc. 50 Washington Street Westborough, MA 01581 Audit Period: January 1, 2025 - December 31, 2025 The findings from April 22,2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDING - FINANCIAL STATEMENT AUDIT FINDING SIGNIFICANT DEFICIENCY 2024-001 Seperation of Justice Center Recommendation: We recommend management examine their internal processes and policies on how activities for both entities are seperately accounted for to ensure proper separation consistent with LSC requirements. We understand management has submitted a correction action plan and has been working with LSC and has already implemented several recommendations from the review and is expected to finalize and implement any remaining required recommendations in 2026. We further understand that LSC has not demanded a formal deadline for completion of the Program Integrity Review and the Organization is not unreasonably delayed in its implementation of any corrective actions. Action Taken: SCCLS prepared and developed a corrective action plan with LSC and has met with LSC on a bi-weekly basis working with LSC to ensure that compliance with the corective action plan will result in adequate separation between entities under Title 45 of the Code of Federal Regulations. Mulitple aspects of the plan has been implemented, with full compliance expected in 2026. FINDING - FEDERAL AWARD PROGRAM AUDIT SIGNIFICANT DEFICIENCY LEGAL SERVICES CORPORATION 2024-001 Seperation of the Justice Center The significant deficiency relates to the Federal Funds received from Legal Services Corporation (LSC), Basic Field Grant, grant recipient #122087, under assistance listing number 09.112087. Recommendation: We recommend management examine their interal processes and policies on how activies for both entities are separately accounted for to ensure proper separation consistent with LSC requirements. We understand management has submitted a corrective action plan and has been working with LSC and has already implemented several recommendations from the review and is expected to finalize and implement any remaining required recommendations in 2025. We further understand that LSC has not demanded a formal deadline for completion of the Program Integrity Review and the the Organization is not unreasonably delayed in its implementation of any corrective actions. Action Taken: SCCLS prepared and develiped a corrective action plan with LSC and has met with LSC on a bi-weekly basis working with LSC to enure that compliance with the correction action plan with result in adequate separation between entities under Title 45 of the Code of Fedearl Regulations. Multiple aspects of the plan have been implemented, with full compliance expected in 2026. If Legal Services Corporation has questions regarding this plan, please call Christopher Oldi, Executive Director at (774) 488-5950 2023-001 Seperation of the Justice Center The significant deficiency relates to the Federal Funds received from Legal Services Corporation (LSC), Basic Field Grant, grant recipient #122087, under assistance listing number 09.112087. Recommendation: We recommend management examine their interal processes and policies on how activies for both entities are separately accounted for to ensure proper separation consistent with LSC requirements. We understand management has submitted a corrective action plan and has been working with LSC and has already implemented several recommendations from the review and is expected to finalize and implement any remaining required recommendations in 2025. We further understand that LSC has not demanded a formal deadline for completion of the Program Integrity Review and the the Organization is not unreasonably delayed in its implementation of any corrective actions. Action Taken: SCCLS prepared and develiped a corrective action plan with LSC and has met with LSC on a bi-weekly basis working with LSC to enure that compliance with the correction action plan with result in adequate separation between entities under Title 45 of the Code of Fedearl Regulations. Multiple aspects of the plan have been implemented, with full compliance expected in 2026. If Legal Services Corporation has questions regarding this plan, please call Christopher Oldi, Executive Director at (774) 488-5950 Sincerely yours, Christopher Oldi Executive Director

View Audit 401473

Corrective Action Plans

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