Corrective Action Plans

Finding 1172772 (2025-006)

Material Weakness 2025

IL

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

Condition: Costs included on the 6/30/25 2025 Title I ISBE expenditure report included costs paid after 6/30/25. Recommendation: We recommend implementing an additional process to reconcile the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submissio...

Condition: Costs included on the 6/30/25 2025 Title I ISBE expenditure report included costs paid after 6/30/25. Recommendation: We recommend implementing an additional process to reconcile the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submission of ISBE grant reports. Management Response: The District will consider implementing an additional reconciliation process and will take necessary steps to review expenditures in the general ledger against expenditures reported to ISBE. Anticipated Date of Completion: June 30, 2026

View Audit 386055

Finding 1172771 (2025-005)

Material Weakness 2025

Carlyle Community Unit School Dist. #1

IL

Questioned Costs Reporting Internal Control / Segregation of Duties

Condition: The final 2024 Title I grant report at 8/31/24 includes an expenditure that should have been claimed in the first report. Recommendation: We recommend implementing an additional reconciliation process in grant reporting that compares the budgeted cost of items to the amount recorded in th...

Condition: The final 2024 Title I grant report at 8/31/24 includes an expenditure that should have been claimed in the first report. Recommendation: We recommend implementing an additional reconciliation process in grant reporting that compares the budgeted cost of items to the amount recorded in the general ledger against the grant reports before submission. Management Response: The District will take the necessary steps to review expenditure reports to ensure they capture expenses within the appropriate quarterly report. Anticipated Date of Completion: June 30, 2026

View Audit 386055

Finding 1172770 (2025-004)

Material Weakness 2025

Carlyle Community Unit School Dist. #1

IL

Questioned Costs Allowable Costs / Cost Principles Cash Management

Condition: The District submitted budgeted expenditures for reimbursement instead of actual expenditures in Title I, Grant Year 2024. Questioned costs of $5,448. Recommendation: We recommend reconciling the budgeted amount to the general ledger totals and reconciling those to expenditure reports bef...

Condition: The District submitted budgeted expenditures for reimbursement instead of actual expenditures in Title I, Grant Year 2024. Questioned costs of $5,448. Recommendation: We recommend reconciling the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submitting. Management Response: The District will take necessary steps to review the budgeted cost of items and the amount recorded in the general ledger against the expenditure reports before submitting the final grant reports. Anticipated Date of Completion: June 30, 2026

View Audit 386055

Finding 1172738 (2025-003)

Material Weakness 2025

Southeast Iowa Regional Housing Authority

IA

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

HQS inspections will be documented in each tenant’s file in accordance with applicable standards, along with the corresponding inspection log maintained by the PHA. Any required reinspection will also be completed and documented accordingly in the tenant’s file.

View Audit 386037

Finding 1172737 (2025-001)

Material Weakness 2025

City of Charleston, West Virginia

WV

Questioned Costs Reporting Matching / Level of Effort / Earmarking § 200.1 § 200.303

Finding 2025-001 Reporting Federal Agency- U.S. Department of the Treasury Program Name - Coronavirus State and Local Fiscal Recovery Funds (SLFRF} Federal Assistance Listing Number: 21.027 2 CFR 200.303 requires that a non-federal entity must "(a) establish and maintain effective internal control o...

Finding 2025-001 Reporting Federal Agency- U.S. Department of the Treasury Program Name - Coronavirus State and Local Fiscal Recovery Funds (SLFRF} Federal Assistance Listing Number: 21.027 2 CFR 200.303 requires that a non-federal entity must "(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States and the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)." The terms and conditions of the funding require the recipient to submit quarterly Project and Expenditure Reports to the U.S. Department of the Treasury {Treasury). Information required to be included in these quarterly reports includes projects funded, expenditures, obligations, and other information. Treasury's Coronavirus State and Local Fiscal Recovery Guidance requires that "Reporting must be consistent with the definition of expenditures pursuant to 2 CFR 200.1." Responsible Officials: The City of Charleston utilizes an outside agency to compile and submit the required quarterly reports to the Department of Treasury for the State and Local Fiscal Recovery Funds. City officials provide the details of the projects funded, expenditures, obligations, and all other required information to the outside agency, who will then compile and submit the report. Upon review of prior period reports, City officials discovered that the expenditure amount for one of the projects was less than the amount provided to the outside agency for the report. The City brought this to the attention of the outside agency, then increased the project expenditures of the report in question so that the project to-date.

View Audit 386032

Finding 1172719 (2025-001)

Material Weakness 2025

Waypoint Services for Women, Children, and Families & Subsidary

IA

Cash Management Reporting Internal Control / Segregation of Duties

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

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

View Audit 385974

Finding 1172687 (2025-001)

Material Weakness 2025

East Peoria Elementary School District No. 86

IL

Internal Control / Segregation of Duties Questioned Costs Cash Management § 200.303

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (superintendent or associate superintendent) compares the meal counts in the cl...

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (superintendent or associate superintendent) compares the meal counts in the claim to the Skyward and RevTrak daily meal count reports, monthly participation summary, eligibility rosters (free, reduced, paid) and USDA reimbursement rates. The reviewer will then sign and date a reconciliation sheet before submission. Anticipated date of completion: June 30, 2026. Name of contact person: Tony Ingold, Superintendent. Management response: The corrective action plan was discussed with the employee responsible for filing the claim, the associate superintendent, and the superintendent. After discussion, the plan was approved and will be implemented.

View Audit 385944

Finding 1172677 (2025-002)

Material Weakness 2025

University of Puerto Rico

PR

Questioned Costs Special Tests & Provisions Student Financial Aid

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

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

View Audit 385928

Finding 1172611 (2025-001)

Material Weakness 2025

Satellite St. Andrew's Manor, LLC

CA

Questioned Costs HUD Housing Programs Significant Deficiency

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

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

View Audit 385881

Finding 1172608 (2025-003)

Material Weakness 2025

Neighborhood Properties, Inc.

OH

Questioned Costs Allowable Costs / Cost Principles Reporting

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

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

View Audit 385864

Finding 1172555 (2025-002)

Material Weakness 2025

YWCA Pierce County

WA

Internal Control / Segregation of Duties § 200.303

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

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

View Audit 385850

Finding 1172552 (2025-001)

Material Weakness 2025

Darlington Community School District

WI

Internal Control / Segregation of Duties

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

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

View Audit 385843

Finding 1172547 (2025-004)

Material Weakness 2025

Saguache County Community Council, Inc.

CO

Special Tests & Provisions Questioned Costs Material Weakness

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

View Audit 385826

Finding 1172546 (2025-003)

Material Weakness 2025

Saguache County Community Council, Inc.

CO

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

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

View Audit 385826

Finding 1172540 (2025-001)

Material Weakness 2025

Connected Lane County

OR

Questioned Costs Reporting Significant Deficiency § 200.212 § 200.512

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

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

View Audit 385818

Finding 1172539 (2025-002)

Material Weakness 2025

Zepf Center

OH

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

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

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

View Audit 385809

Finding 1172537 (2025-001)

Material Weakness 2025

Zepf Center

OH

Reporting Significant Deficiency Internal Control / Segregation of Duties

Fatherhood Connection (FIRE) – Assistance Listing No. 93.086 Recommendation: The Center should implement a strategy of using time and effort documentation in determining payroll costs charged to grants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. ...

Fatherhood Connection (FIRE) – Assistance Listing No. 93.086 Recommendation: The Center should implement a strategy of using time and effort documentation in determining payroll costs charged to grants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is in the process of implementing a policy to track time and effort of salaried employees. Name(s) of the contact person(s) responsible for corrective action: David Oppenlander, CFO Planned completion date for corrective action plan: January 31, 2026

View Audit 385809

Finding 1172535 (2025-003)

Material Weakness 2025

Mill Creek Community School Corporation

IN

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

FINDING 2025-003 Finding Subject: Education Stabilization Fund - Earmarking Contact Person Responsible for Corrective Action: Lori Bennett Contact Phone Number and Email Address: 317-539-9200, LBennett@mccsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Correct...

FINDING 2025-003 Finding Subject: Education Stabilization Fund - Earmarking Contact Person Responsible for Corrective Action: Lori Bennett Contact Phone Number and Email Address: 317-539-9200, LBennett@mccsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: While the school corporation no longer has any active funds with the COVID-19 Education Stabilization Fund the school corporation will ensure that the designed or implemented a system of internal controls, which would include segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance for any future federal program. Anticipated Completion Date: January 1, 2026 INDIANA STATE

View Audit 385771

Finding 1172533 (2025-002)

Material Weakness 2025

Mill Creek Community School Corporation

IN

Procurement, Suspension & Debarment Subrecipient Monitoring School Nutrition Programs § 200.303

FINDING 2025-002 Finding Subject: Child Nutrition Cluster - Suspension and Debarment Contact Person Responsible for Corrective Action: Lori Bennett Contact Phone Number and Email Address: 317-539-9200, LBennett@mccsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description o...

FINDING 2025-002 Finding Subject: Child Nutrition Cluster - Suspension and Debarment Contact Person Responsible for Corrective Action: Lori Bennett Contact Phone Number and Email Address: 317-539-9200, LBennett@mccsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The School Corporation will require that suspension and debarment verification be done for all appropriate vendors prior entering into and paying an invoice at the start of each year. The verification is to be done by checking the SAM exclusions, collecting a certification from that person, or adding a clause or condition to the covered transaction with that person. Documentation will be included with the first voucher each year for that qualifying vendor. Anticipated Completion Date: January 2026

View Audit 385771

Finding 1172523 (2025-001)

Material Weakness 2025

Drake University

IA

Questioned Costs Student Financial Aid Reporting

Recommendation: We recommend the University reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explanation of disagreement with audit finding: There is no disagreement w...

Recommendation: We recommend the University reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Registrar’s Office has put in place steps to ensure that any exception reports from the Clearinghouse are immediately reviewed and any exceptions are addressed and resubmitted. In addition, the Registrar’s Office has put in place steps to ensure that students are submitted to the Clearinghouse early enough so that they will still be submitted by the Clearinghouse to NSLDS timely, even if there are delays by the Clearinghouse. Name(s) of the contact person(s) responsible for corrective action: Kristin Dvorak, University Registrar; Kevin Moenkhaus, Associate Registrar Planned completion date for corrective action plan: January 2026

View Audit 385745

Finding 1172516 (2025-001)

Material Weakness 2025

Lubbock Christian University

TX

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Finding 2025-001 Required Disclosures Views of Responsible Officials The University agrees with the auditor’s findings and recommendations. Corrective Action Plan The University has participated in educational opportunities provided by the Department of Education and implemented procedures to ensure...

Finding 2025-001 Required Disclosures Views of Responsible Officials The University agrees with the auditor’s findings and recommendations. Corrective Action Plan The University has participated in educational opportunities provided by the Department of Education and implemented procedures to ensure timely disclosure. All subsequent updates have been completed. Implementation Date Immediate Individual(s) Responsible Brandon Goen, Controller

View Audit 385744

Finding 1172512 (2025-003)

Material Weakness 2025

Norwood School District No. 63

IL

Internal Control / Segregation of Duties Questioned Costs Cash Management § 200.303

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person will compare the meal counts in the claim to: (1) the daily meal counts prepare...

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person will compare the meal counts in the claim to: (1) the daily meal counts prepared by cafeteria staff and (2) the monthly enrollment reports from the accounting software. The reviewer will then sign and date the supporting documentation before the meal claim is submitted. Anticipated date of completion: December 2025. Name of contact person: Jake Flowers, Superintendent. Management response: The corrective action plan was discussed with the employees responsible for filing the claim and the superintendent. After discussion, the plan was approved by the superintendent and will be adopted.

View Audit 385731

Finding 1172496 (2025-001)

Material Weakness 2025

Oregon City School District No. 62

OR

Questioned Costs Subrecipient Monitoring Reporting

5. SA-2025-01 a. Deficiency: Employees funded with Title I grant funds should document their time worked for the grant in line with time and effort requirements of the grant. b. Cause: The District did not consistently meet Title I time and effort documentation requirements for certain employees dur...

5. SA-2025-01 a. Deficiency: Employees funded with Title I grant funds should document their time worked for the grant in line with time and effort requirements of the grant. b. Cause: The District did not consistently meet Title I time and effort documentation requirements for certain employees during the audit period. This occurred due to staffing changes and turnover within the federal grant which resulted in retro pay and funding corrections, which resulted in inconsistent time and effort documentation. In addition, there was a lack of centralized oversight to ensure that time and effort records were completed timely and retained in accordance with federal requirements. c. Corrective Action: The District has taken steps to review time and effort allocations, processes and requirements. Training will be provided to applicable employees and supervisors to reinforce federal requirements and expectations.

View Audit 385685

Finding 1172470 (2025-005)

Material Weakness 2025

Billings Public Schools

MT

Questioned Costs Special Tests & Provisions Allowable Costs / Cost Principles

Department of Education, passed through the State of Montana Office of Public Instruction, Federal Financial Assistance Listing 84.010, federal award numbers S010A240026 and S010240026, grant period 7/1/2024 – 9/30/2026 Title I Grants to Local Education Agencies Special Tests and Provisions Finding ...

Department of Education, passed through the State of Montana Office of Public Instruction, Federal Financial Assistance Listing 84.010, federal award numbers S010A240026 and S010240026, grant period 7/1/2024 – 9/30/2026 Title I Grants to Local Education Agencies Special Tests and Provisions Finding Summary: During the auditor’s federal program testing of Title I, it was noted that several students were removed from the adjusted cohort for unallowable reasons. Corrective Action Plan: The District staff will follow the guidance in ESEA sections 1111(h)(1)(C)(iii)(II) and 8101(23), (25) (20 USC 6311(h)(1)(C)(iii)(II) and 7801(23), (25)), to ensure graduation rate data is reported correctly going forward. Responsible Individual: Laurie Kvamme, Chief Financial Officer Anticipated Completion Date: June 30, 2026

View Audit 385643

Finding 1172461 (2025-002)

Material Weakness 2025

Regional School Unit No. 18

ME

Questioned Costs Cash Management Internal Control / Segregation of Duties

Management’s response/corrective action plan: Management concurs with the audit finding. During fiscal year 2024, the School Unit appropriately recorded the cost of a five-year software agreement as a prepaid expenditure. However, in fiscal year 2025, the entire amount was incorrectly recognized as ...

Management’s response/corrective action plan: Management concurs with the audit finding. During fiscal year 2024, the School Unit appropriately recorded the cost of a five-year software agreement as a prepaid expenditure. However, in fiscal year 2025, the entire amount was incorrectly recognized as a current-year expenditure and included in the calculation of grant reimbursements. To remedy this issue, management will enhance internal controls over prepaid expenditures charged to federal grants. Specifically, finance staff and the business manager, will review all prepaid items at year-end and during grant reimbursement preparation to ensure that expenditures are recognized in the proper fiscal period and in accordance with the underlying contract terms. A reconciliation between prepaid balances, contract terms, and reimbursement requests will be performed prior to federal grant submission. In addition, written procedures will be updated to clearly require verification that only allowable and incurred costs are included in reimbursement claims, and relevant staff will receive additional training on grant compliance requirements related to prepaid expenditures. Management believes these actions will prevent similar issues in the future.

View Audit 385625

Corrective Action Plans

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